Parts of the country are experiencing versions of spring for the first, second or third time this year (if your weather continues to shift between freezing rain and 60 degrees – looking at you, Missouri and Illinois), and with that come things to get you Outside the house. It’s the best time of the year when the sun rises, but it’s still a little too early to do any real gardening work.
All that to say, the best way to get out of the house is to join FreightWaves’ first IN-PERSON event of the year: The Future of the Supply Chain. It’s May 9 and 10, a Monday and Tuesday, and for those quick on the draw, there are special tickets, like a coupon to hang out with the coolest people you know. Just click the banner and you might get the coupon!
And don’t forget the 3PL Summit on March 16! You don’t have to leave your house/office/chair/bed for this one. Consider it your pregame for St. Patrick’s Day!
Now back to regular business…
On Tuesday, we covered pro life advice from a former broker and load planner. Today we are changing it; we are looking at the need for carrier side information for dry van shipments and refrigerated shipments. We don’t always remember what’s happening from the carrier’s perspective; it’s good to stop and remember that carriers are people too.
I spoke with St. Louis-based Hogan Transportation about things that make individual brokers attractive from a carrier perspective.
FREIGHTWAVES: As a carrier, what do you want to know when you start working with a new brokerage company?
HOGAN TRANSPORT: “When starting out with a new customer, it’s important to know how long they’ve been in business, what their payment terms are, their expectations of a shipping partner, who handles the shipping/ receipt, and especially its freight specifications. Another important factor is their IT integration for tendering, tracking, scheduling and invoicing. Simplifying the whole process benefits both the carrier and the customer.
FREIGHTWAVES: What difficulties do you encounter with new brokers in the sector?
HOGAN TRANSPORT: “Operational experience and expertise are important attributes of being a successful broker. It is important for new brokers to understand the various trucking markets and the costs associated with them. It is equally important that they understand the driver market.
“The driver market has changed the 3PL landscape. On-road (OTR) drivers are transferred to regional routes that allow them to spend more time at home with their families. Recruiting and retaining OTR drivers requires higher wages, which increases customer rates. It takes a lot of knowledge to be successful in the broker market, which takes time to absorb. »
FREIGHTWAVES: What are the most important things you need for successful reefer shipping?
HOGAN TRANSPORT: “Communication from customer and broker of the exact product, including processing, packaging, handling during pickup or delivery. Another important point is clarification if orders have both temperate products (more than 35 degrees) and frozen (32 degrees or less) Not only that, but is the partition required and who is responsible for the temperature tracking capabilities of the partition and refrigeration unit.
“Shipping value must be communicated prior to order award to ensure freight insurance limits are met. , drivers are required to confirm the temperature listed on the bill of lading before signing the bill of lading at the shipper.The temperature listing on the BOL is non-negotiable.
“Details are KEY. For example, there is a big difference between ‘Frozen 32 Degres’ and ‘Frozen -10 Degres’, especially when the load is rejected by the recipient because it was not run at the required temperature. »
The biggest takeaway for those just starting out or looking to develop their skills is to do your homework. Take the time to learn the markets with all the amazing tools out there (I have a thing for SONAR, but you are), and ask shippers and carriers even questions that may seem obvious. The last thing you want is for a detail to be overlooked because it was assumed that everyone knew the answer. As simple as it sounds, never be afraid to ask.
Remember when the Suez Canal was blocked for six days and world trade came to a screeching halt? Yeah, good times. The Suez Canal is back in the spotlight, not for a huge stranded ship, but rather for a toll on the canal. Personally, I didn’t know that the Suez Canal had tolls, but if land highways can impose tolls, it makes perfect sense that a land highway can.
Full and empty ships passing through the canal face a toll increase of 5%, 7% or 10% – the price increase will depend on the type of carrier. The only exceptions to this toll are liquefied natural gas vessels and cruise ships. Now, 5% might not sound like a lot, but that’s tens of thousands of dollars for, say, one-way public transit that usually costs an already hefty $625,000.
If you have customers who use container shipping a lot, it’s time to have those conversations and work on proactive measures, whether it’s booking on ships circumnavigating the Horn of Africa , add more time to a shipment, or simply save time and pay the price. Tolls or fuel prices for longer crossings will be the key indicator in decision making.
Port congestion on the west coast is down: we’re hovering around the number of 70-60 ships waiting to berth in San Pedro Bay. Ships diverted to the East Coast or paused following the Chinese Lunar New Year. Things have improved for ports. Until now.
Guess what year it is. This is the year to renegotiate the West Coast International Longshore and Warehouse Union contract. Currently that bad boy is due to expire at the end of June, but about four dozen of our closest friends have politely asked the White House to get involved in the negotiations now, so we can avoid breaking the recent record of 109 ships in waiting for seats. The contract covers all west coast ports from San Diego to Seattle.
Automation and higher pay are expected to be top agenda items, with port operators interested in technology to address inefficiencies contributing to COVID-related backlogs and the workforce seeking a cut in record profits maritime carriers, which control many terminals. I mean, who doesn’t remember the photos from 2014 showing containers of fresh produce rotting in the summer heat?
Hoping they resolve the issues soon, as we can’t handle another work slowdown or lockdown.
Go west, young man, but only west, not northwest. The Pacific Northwest is going through a bit of a rainy spell and has decided to back out of the conversation. The national roads are flooded, the pavement is damaged and the roads are simply blocked by whole trees. As a result of Mother Nature’s delight, authorities were forced to close major state highways to all traffic. For a region used to rain, this is a little more than usual.
Despite these massive road disruptions, the spot market did not catch up with the weather. The FreightWaves TRAC rate for Medford, Oregon to Olympia, Washington is $6.15 per mile. For those unfamiliar with this area, the rate may seem quite high, but it is actually quite low. In fact, it’s one of the lowest rates in the last three months. Road conditions in some areas can result in off-road miles, but it’s still a good time, in terms of rates, to book those loads and incentivize shippers to move their freight.
who is with whom
Regional LTL carrier Dayton Freight Lines announced the acquisition of a trucking division of longtime carrier partner Valley Cos. Valley is a regional transportation and logistics provider based in Hudson, Wisconsin. The agreement includes terminals, trucks, related equipment and workers. Logistics and warehousing components from Valley Cos. are not included. This agreement will allow Dayton Freight to provide direct coverage to all of Minnesota.
Wagonbuilder Greenbrier has a new CEO, Lorie Tekorius. It was announced last year that she would reprise the role. Tekorius’ previous positions were COO, President and CFO. As a walking model of Greenbrier corporate values, Tekorius is sure to competently lead the company through the unprecedented challenges facing the entire supply chain world.
The more you know
March Madness Special Available for Future of FreightWaves Supply Chain
The shipping world stands with Ukraine
Biden bans Russian planes from US airspace
Trucking and logistics companies unite to raise money for Ukrainians
Shipping does not wait for sanctions. He refuses to move the Russian cargo
FREIGHTWAVES’ Top 500 For-Hire Carriers list includes Dayton Freight Lines (#58).