Can we just say that 2018 will go down as a year that tested the patience of everyone and anyone shipping and receiving freight?

​As the year winds down, we're finally starting to see the pressure ease. Lower freight rates and improved capacities top the list of improvements. But, before we get our hopes up in a volatile freight industry, let’s look back to when things started to unravel.

Where did all the Trucks Go?

In 2017, we had two major hurricanes in the US (Harvey and Irma). The aftermath created a huge demand for trucking resources. FEMA, like a huge vacuum, sucked up all the available capacity they could. This drain created a massive shortfall for shippers. Add to this a robust retail market and the implementation of new DOT Regulations and you have the perfect storm.

We have all experienced the chaos created by these events. A big question on people’s minds is where do things stand today and moving forward?

The Industry's 3 Biggest Challenges

Obviously, we cannot predict the future. However, there are some things we can learn to better understand carrier challenges. Armed with this information, we can either help mitigate increased costs or face the reality that transportation rates have established a new baseline.

Certainly, a robust economy can have a positive effect but with higher haul rates and more opportunity, that economic boost also adds stress to the driver and equipment resources in the mix. For now, let's take a closer look at the challenges capable of having the greatest negative impact:

1. New DOT Drive Time Regulations
   New restrictions on driver hours and the introduction of the ELD electronic logging device have had a big impact on capacity. Without available driver time, the largest equipment fleets remain parked. The ELD has forced out many older drivers and operators who skirted the rules for years, giving them advantages. The new regs have caused carriers to alter how they approach many shipping lanes. The net result has led to higher transportation cost to shippers.
   
   
2. Driver Shortages
   There are many facets surrounding the current driver shortage. And, according to one industry source,  the shortage we're seeing today will continue into the foreseeable future due to:
    
   - Aging work force
   - Driver turnover (not mentioned much outside of the industry)
   - Regulations and restrictions put on drivers
   
   
3. Fuel
   The price of fuel is another big cost element in the freight industry. One way to keep up with fuel cost (where it has been or where it is is headed) is to monitor the US National Diesel Fuel Index. This site provides information to substantiate any change in FSC your carrier maybe charging.
     

Will 2019 see Freight Improvements?

There are still many challenges ahead. The industry has made many adjustments to offset some of the issues mentioned above. In addition, fuel prices have recently softened.

To combat the driver shortage, carriers are offering lucrative wage and benefit packages to lure new drivers into the industry. Hopefully, this strategy will pay off.

In many areas, capacity pressure has eased. As a result, you may be experiencing more available capacity and competitive pricing. How long it might last is unknown. Analysts in the investment world provided their outlook in a 2019 trucking rates forecast this past fall.

Is your company seeing lower freight rates and capacity improvements? Let us know in the comments below. Your response may help other customers plan their transportation strategies for 2019.

Post by: Aaron Pascarella, Customer Service Representative

When I wrote my original post, 6 Freight Terms Everyone Should Know, I had no idea it would become so popular.

Since that time, a lot of interesting freight questions from all over the world have come my way. I guess I shouldn't have been too surprised. Shipping stuff seems easy enough, but sometimes it feels like you have to learn a secret new language just to get a freight bill paid. That's why I've decided to expand on my first freight terms post.

Below are more terms you might see on shipping documents:
  

1. DE PPD or DSTNTN-PPD
   Destination Prepaid
   This means that the buyer is taking delivery of goods being shipped by a supplier. After the goods arrive at the buyer's receiving dock, the supplier pays the shipping costs.
     
2. ORG
   Origin
   This identifies the starting location for the freight or shipment.
     
3. PPA
   Prepaid and Add
   This means the shipper pays for the freight charges using their preferred carrier and then passes along full (or partial) charges by adding the charges to customer's invoice for payment.
     
4. FFA
   Free Freight Allowance or Forward Freight Agreement
   Both meanings here are associated with how much a customer will be charged for freight. Free Freight Allowance allows for discounted shipping charges (usually issued when a customer reaches a certain volume or dollar amount). A Forward Freight Agreement is used when both parties agree on freight charges for future delivery. Since freight rates are always changing, both sides are gambling on rates going up or down (in their favor) at the time of shipment.
     
5. PP-PRTL
   Prepaid Partial Truckload
   When a load is too big to meet LTL standards but is still shy of a full load, it's called a partial truckload. If you see PP-PRTL, it means the customer agrees to prepay the shipping charges for a partial truckload.

What other terms have you seen on freight paperwork? New terms seem to pop up all the time so keep them coming. Post your questions in the comments below (and don't forget to check my original freight terms post too).

Post by: Amber Potts, Customer Service Representative

The most popular standard pallet size in US inches is 48L x 40W. How popular? The 48x40 accounts for approximately 30% of all wooden pallets produced each year.

The 48x40 standard was set by the Grocery Manufacturers Association (GMA) more than forty years ago. For this reason, you may hear it called a GMA pallet. But, not all 48x40 pallets are designed to GMA specs nor are they all used in the grocery industry. Interestingly, that's true of most any "industry standard" pallet. Even though a pallet may have originally been standardized for a specific trade, its use is often not exclusive to that industry alone.

Most Popular US Pallet Sizes

You'll notice many of the most popular sizes on this list are square pallets or nearly square. That's simply physics. A square base can help to prevent load tipping. Below are ways you'll most often see these popular pallet sizes used:
  

• 48x40 in  Grocery and general warehouse
• 42x42 in  Telecom; technical coatings and paint
• 48x48 in  Fits four 55 gallon drums without overhang
• 40x48 in  Military; cement bags and blocks
• 48x42 in  Packaged chemicals and beverages
• 40x40 in  Dairy, designed to fit stacked milk crates
• 48x45 in  Automotive, meets AIAG specs
• 44x44 in  Chemical drums and FIBC bulk bags
• 36x36 in  Beverage, specifically Coke and Pepsi trucks
• 48x36 in  Roofing and shingles; paper; beverage

    
Pallet Sizes for Exporting

The 1200x800 Euro pallet (you may see it labeled as EUR, EUR1 or EPAL) is Europe's market leader by a landslide. Many European conveyor systems and other handling equipment cannot accept larger pallets. Ship in the wrong size and you may get hit with disposal and repacking fees. Many metric dimension pallets in use around Europe, Asia and other foreign locations are similar in dimensions to popular US pallets bringing us close to global pallet size standardization:
  

• 1200x800   mm (US 48x32) Most popular; designed to fit European trucks and machinery
• 1200x1000 mm (US 48x40) Computer warehouses and distribution centers
• 1140x1140  mm (US 45x45) Maximizes freight density for shipping containers 
• 1100x1100  mm (US 43x43) Granular chemicals in bulk bags
• 1190x1135  mm (US 47x45) Export alternative to US automotive standard​

Think custom-design means expensive? Allow me to change your mind. In this post, I'll show you how expert crate design and a return program can add up to big savings.

I'll even back it up with a real-life example of a returnable crate design that resulted in immediate payback for one manufacturer.

Reducing Waste Saves Money

A crate made to fit your specific product reduces waste. Think about that. Using the exact amount of the right materials means you won't be paying for stuff you don't need.

Packaging engineers take into consideration every detail of your product including size, weight and handling requirements. The result is a durable and custom wooden crate optimized to use the least amount of resources. Less waste can make for a big reduction in your build cost and transport fees.
  

The More you Reuse, the More you Save

Plain and simple, reusability is often the biggest factor in reducing costs. The more times you can return a crate, the more opportunities you have to increase your savings. 

Return costs are based on pick-up locations and volume. Last year The Nelson Company managed return programs from over 2,500 pickup locations. Want to know if your operation is a good candidate for returning and reusing wooden crates? Check out my reverse distribution blog post, Packaging Return Program: Is it for me? 
​  

Payback can be Quick

This is where custom design gets interesting - especially if you've been dealing with shipping damage. Let's look at that example I promised. A toilet manufacturer now uses custom clips crates for shipping their prototype toilets to laboratories across the globe. The toilets need to be tested at multiple labs and then brought back for further analysis. Reusable clip crates were a natural fit.

The customer's old way of shipping was causing damage rates as high as 25%. The new design reduced damage to 0% and paid for itself in about one trip. The clip crate design is easy for workers to pack up plus the company only needs 10 of these perfectly-optimized shipping crates to get the job done. As expected, each shipment of prototype potties in custom crates improves savings.

Ready to save big?

If you've been avoiding custom design because you feared it would cost too much, I hope this post showed you it doesn't have to be that way. If you've been tasked with reducing your damage rates or shipping costs, ask a question below or drop me a line and let's get to work on saving money.

Post by: Kent Longardner, Technical Sales Manager

If you're shopping for plastic pallet containers, you may be wondering if you really need a lid. I get asked that question all the time. Especially if we're talking about stacking the containers. 

The answer is (as you probably guessed) that it depends.

Stack with or without a Lid
Plastic pallet containers are designed to stack safely. The bottom is inset to nest about a half inch into the container below it. This nesting feature allows you to move stacked containers without concern of a container slipping off the stack. Pallet containers can stack with or without lids.

Reasons for a Lid
If your product needs to stay protected from damage or environmental elements like dust, a lid is in order. You may also want to use lids to prevent theft when shipping pallet containers. Many customers band the lid and container together. Others add modifications including hinges and padlocks for beefing up their loss prevention efforts. Lids also make the container resistant to weather damage. While not all containers are waterproof, your contents should be safe during transit if moved in inclement weather.

Choose a lid if you need:

• product protection
• security

Reasons for No Lid
Some plastic bulk containers are designed with a drop gate for easy access to contents. Unfortunately, when you put a lid on your container, you can no longer open the drop gate. The lid waterfalls over the outside edge of the container by about two inches. If the container will be in transit, however, the waterfall (or overhang) is an advantage because it provides security. You don’t have to worry about someone accessing your contents while the container is moving.

Further, agricultural users concerned about moisture and mold will benefit from using pallet containers with vented walls and no lid. A vented container allows moisture to escape, reducing environmental conditions conducive to mold and decay. This helps to keep the produce fresher longer. I explain this in more detail in my previous post about using plastic containers for NC sweet potatoes.

Skip the lid if you need:

• easy access to contents
• better air flow

Customizing Lids
Companies that use a lot of pallet containers have the option to emboss lids with their name or company logo. This helps to claim ownership and prevent loss of the lid itself. To qualify, you must be a heavy container user. The minimum order for containers with customized lids is two truckloads (about 200-500 containers depending on size).

Do you use plastic pallet containers with or without lids? Tells us below or ask me if a lid is right for your application.

Post by: Penny Peirce, Sales Representative

OK, so you run a cold storage operation and the FDA has been in a time or two talking about the FSMA and other interesting subjects. So far you are in full compliance, but you thought it might not be a bad idea to look into switching to plastic pallets for your sub-freezing storage. 

Where Do I Even Begin?

No reason to panic. The truth is that MOST plastic pallets available on the market today can withstand temperatures below 32°F without any difficulty. You are at minus 30°F? Holy Cow - that is cold! And, yes, you WILL need a true freezer grade pallet.

So what makes a pallet truly freezer grade? Captain Obvious will tell you, the one that works well in a freezer. One that has the stiffness to do its job as a pallet but one that does not get brittle in cold temperatures. Dah. 

Here are the two main factors that will impact performance in the freezer:

1. Material
   Simply put, some plastic resins do better in the cold than others. More on that in a bit.
     
2. Wall Thickness
   Some of the foibles of polypropylene (PP) and other less cold-resistant resins can be overcome simply by making the parts thicker. A PP part at 3/8" thick will be less likely to fail in the cold than say one at 1/8" thick.

Tell Me More About Plastic Resins for Freezer Use

As I mentioned above, brittleness must be considered in material choice. Here's some good info to have:

• LDPE and HDPE
  Both do well in the cold. Not unusual to see brittle thresholds of -50°F for some grades.
   
• PP and PVC
  These can become brittle even at moderately cold temperatures. Many generic PP grades will get brittle at around 32°F. 
   
• Polystyrene
  This gets brittle if you give it the cold shoulder.
   
• Structural Foam
  Any resin that has been foamed (as in structural foam) will also become more brittle in the cold than a part molded of the same material but not foamed. 

What About Recycled Material?

Good question. Most applications can be adapted to pallets made from recycled plastic material. When it comes to freezer grade, however, material engineers need to be consulted.

The same material that does well as a virgin, unblended resin will lose physical properties each time it is recycled. To combat this, the better engineered pallets will add an elastomer filled resin like TPO to the mix. In layman’s terms, this is like adding rubber to the plastic. The chemistry behind all of this can be like voodoo and is often a well-guarded secret. For us, it means the pallets will still be stiff enough to do their jobs, but will not get brittle when they are cold.


I Think I Need a True Freezer Pallet. Now What?

​To recap, if your work environment is really cold, say lower than 0°F, you should consider a true freezer grade pallet when buying plastic. If you intend to use a pallet molded from virgin material, ask specific questions about the material from which that pallet is molded. Working temperature ranges are listed for all plastic resins, and your supplier should have that data in writing. If you are considering pallets with recycled content, look for a supplier that offers an engineered solution, specifically addressing your low temperature needs.

Still confused? Best to reach out to a pallet professional or you can post your questions here.
​
Post by: Hartson Poland, Business Development - Plastic

Protecting rolled products from damage is one of the more challenging jobs for unit load material handling.

If you work with heavy rolls of foil, film, paper, plastics or other high-value material, you know that damage during transport or storage can make the product unusable. That's a costly mistake no one wants to make.

Shipping Roll Products

To develop a better protection system for transporting factory rolls, everything from the roll properties to customer requirements must be considered. A minor dent is not so minor when it causes thousands of dollars in loss. Equally cringe-worthy is a load that shifts during transport and causes product to open or roll away.

There are three main ways to ship rolled products:
  

1. Vertical Rolls
   Vertical Rolls put the least stress on a pallet or platform. This solution is best suited for rolls that can handle being shipped in a upright position. Advantages include lower-cost pallets and minimal unitizing to keep the roll(s) secure on the pallet.
   
   
2. Cradle Supports
   Cradle supports work best when rolls can withstand pressure from the pallet or packaging and can ship in a horizontal position. This option requires more pallet support and some type of "cradle" to hold the roll secure. Made from wood, plastic, foam or paper, cradles can be permanently attached to the pallet or added at time of shipping.
   
   
3. Suspended Rolls
   When rolls cannot withstand pressure from the pallet, they are suspended. Roll cores are typically attached to header boards at each end to keep the roll suspended above the pallet. While this is the most protective shipping method, the strength and stiffness requirements for the pallet are much greater. Extra nails, wider boards at tine tips and other securement reinforcements help prevent any part of the pallet from touching the roll during handling.

Maximize Protection while Minimizing Cost

If you are experiencing too many callbacks due to roll damage, it may be time for a change. And not just for damage control. Shifting over to a better roll pallet design can also save time by streamlining the palletizing process. Delivering products on time and in pristine condition saves money plus offers a competitive advantage.

Air freight is the creme de la creme of all shipping methods and comes with a hefty price tag. But, can choosing the right pallet for air shipments really help "lighten the load"? Yes. Yes it can.

Choose the Right Air Freight Pallet

Air freight can be expensive. But cost-conscious businesses with lean inventory often depend on air freight (instead of ocean) to move product in a timely, more predictable manner. So how can these businesses optimize air freight cost? Easy. Consider these money-saving air freight tips:
  

• Follow Industry Standards
  By industry standards, I mean shipping on an ISPM-15 exempt pallet. All plastic pallets are inherently compliant with export regulations so they eliminate the need for stamping and documentation. This makes exporting hassle-free and lessens the chance for freight delays.
  
  
• Go Light
  You know how you get charged for that extra suitcase when you fly on a trip? Well, that's what airlines call chargeable weight and it applies to cargo too. It is calculated using weight and dimensions. The lightweight nature of plastic pallets makes most of them export friendly. So choosing a 15 lb plastic pallet over a 35-40 lb pallet is really going to save you some money.
  
  
• Think Nestable
  Nestable pallets tend to be lighter in weight and cost less. This is especially important to consider when the pallets are shipping one-way and are not expected to return. When not in use, nestable pallets take up less space to save money in storage and transport costs. 
  
  
• Add Optional Runners
  Need more support? Some loads require more secure stacking capabilities when shipping via air cargo. A popular option for creating a flat and safe surface is to snap on runners to the bottom of nestable pallets. This still keeps the pallet weight and price down but adds stacking and racking capabilities.
  
  
• Get Size Advice
  Size matters. Plastic pallets have consistent and precise sizing and weights to make calculating your loads easier. Not only that, they come in many sizes to work with your application. The right size can prevent cargo damage and save money.
  
  
• Ask About Used
  New isn't always better. There is a huge selection of used plastic pallets that are ideal for export. Used pallets are structurally sound and typically have only some minor cosmetic damage. Best of all, they cost less.

  
Reduce Headaches and Save Money

Shipping air freight can be an expensive headache. Using the wrong pallet for export could be costing more than you realize. Getting expert advice for choosing the right plastic pallet really can help make the process easier and cheaper.

Have a question about choosing the best pallet for your air freight application? Post it here.

Post by Lindsey Silverman, Business Development Representative

Recycled wooden pallets or remanufactured?

​It's a question that comes up often. Before we get into which pallet is better for your packaging needs, let's sort out the definitions of recycled vs remanufactured.

​Defining Recycled vs Remanufactured

Buying wooden pallets starts with understanding the industry lingo. If you're just beginning your search, you're learning that not everyone speaks the same language. Worse, many of the terms sound confusingly similar. Below are the most common interpretations:

Recycled Pallets

Recycled wooden pallets are repaired quickly without complete deconstruction. The mending results in a pallet similar to the original design. Recycled pallets may also be called:

• Repaired Pallets
• Refurbished Pallets
• Reconditioned Pallets

Remanufactured Pallets

Also called reman pallets, these are completely rebuilt using dismantled boards reclaimed from unrepairable wooden pallets. A variation of reman pallets are built using a mix of old and new materials. Alternate names for both varieties of remanufactured pallets include:

• Rebuilt Pallets
• Hybrid Pallets
• Combo Pallets

​Choosing Between Recycled and Remanufactured Pallets

Recycled and remanufactured wooden pallets each have their own advantages. Recycled pallets tend to be cheaper. Reman pallets offer design flexibility. Your unique packaging requirements will determine which one is best.

Choose Recycled Pallets

Recycled pallets are easiest to find in industry standard configurations and sizes. They are typically sorted by size and grade. Choose recycled pallets if your load safely fits within the guidelines for an industry-specific pallet. Common examples of recycled pallets include:

• GMA Pallets
• EPAL Pallets
• CP1 Chemical Pallets
• CP3 Chemical Pallets

Choose Remanufactured Pallets

If your load exceeds the weight or size guidelines of a more readily-available pallet, choose remanufactured. Reman pallets can be custom built to adjust the spacing or length of deckboards. Have a lighter load? Ask about money-saving designs engineered to use less lumber. The point is that reman offers almost endless opportunities like these:

• 48x40 with Special Top Deck Spacing
• 48x31 Built Only with Reclaimed Wood
• 72x36 Built using New Stringers and Used Deckboards

A Smart Choice in Pallets

Now that you know what we mean by recycled and reman pallets, it shouldn't come as a surprise that most wooden pallets in circulation are not new. Repairing and rebuilding is a smart choice for saving money and reducing waste. While heavily-regulated industries might not be a good fit, most pallet users can benefit from using recycled and remanufactured pallets.

Do you have recycled or remanufactured pallet success story? Share it here or ask about ways for creating a new success story.

Post by: Jonathan Haynes, Regional Sales Manager

Here we go again. If you thought 2013 was a bad year for industrial lumber availability, 2018 may make five years ago look downright mild.

Lumber Prices are Going Up

Crisis breeds opportunity, or so they say. Here are increases we've already seen in raw materials:
​  

• Softwood Composite
  Prices are up about 34% in the last 12 months
  
  
• Hardwood Pallet Cant Composite
  Prices are up 11% in the last 5 months

Right now, lead times for industrial lumber are extended and supplies are tight. This means wooden pallet and crate prices have to go up.
  

How to Save on Pallet and Crate Costs 

I'm being asked all the time if anything can be done to combat these price increases. The answer is, yes! Retrieval programs for pallets and crates can save your company 10-50%.
  

• Take Back Control of Costs
  A pallet and crate retrieval program transfers the cost control lever back to manufacturers and shippers. Start by looking at all operating costs with a focus on cost-per-use.
    
• Reuse Existing Packaging
  You might be surprised to learn that return programs do not have to be all inclusive to save money for the shipper. Existing packaging is almost always reusable in its current state.
  
  
• Reduce Packaging Waste
  It gets better. You'll help stop wood-based packaging from going into the landfill. Your company gets to reduce its carbon footprint while also saving money.

  

Change your Packaging from Expense to Depreciable Asset

Need even more reason to consider a packaging return program? The US economy is growing and so is demand for lumber. Logging and sawmill capacity has not yet caught up - and may not. Inflation is real and will grow as the economy grows. If there has ever been a time to get with a program and take control of packaging costs, this is it.

If a packaging return program isn't your best match, here are 3 other money-saving solutions to help with the rising cost of wooden pallets and crates.

As the cost of lumber continues to rise, how are you preparing your business for increased packaging costs? Share your strategies or ask questions in the comments below.

Post by: Rich Reiher, Vice President