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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.  Dispatchers are the hub of communication. They play a vital role in relaying freight delivery information quickly and accurately.
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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.  A driver that transports product to any location at any time without a schedule or route is known in the industry as an over-the-road (OTR) carrier. Will brick and mortar stores decline, thus reducing the need for pallets? Omni-Channel retailing takes the historical buying experience of the brick and mortar store to a level that offers consumers a multitude of methods for product research, buying and order fulfillment.  Changes in shopping habits are closing stores and impacting the pallet industry. Have you noticed a change in your LTL shipping charges? The methodology that LTL carriers are using to determine their rates is changing. This is in follow up to what the major parcel shippers (UPS and FedEx) have already done.  Less-than-truckload (LTL) shipping can be one of the most frustrating and challenging pieces of a freight spend.
There are many moving parts to LTL systems which can result in unexpected surprises. Common problems are lost freight and reweighs. This results in higher-than-expected freight bills, damages and reclassification of classes and item codes. This post will focus in on the reclassification and item codes. “One-Way shipping” aka “Single Trip” aka “Send and Forget”. Why would anyone ship goods on a plastic pallet if they can’t get that pallet back? Not so long ago, this was the thinking when it came to “One-Way Shipping” or “Single Trip” logistics. This logic was based on the fact that plastic pallets were expensive and it took several weeks to get them due to slow and infrequent production schedules. Today, it’s a new frontier.  There are many affordable, readily available plastic pallets that are fulfilling a demographic for single use, plastic pallets. |
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