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If you are in charge of LTL shipping rates in your firm, are you taking advantage of Third Party Logistic firms to enhance your Less Than Truckload  shipping options so that you can then source the best LTL shipping rates out there?

3PL, (Third Party Logistics) firms are a tremendous source of information, and can greatly enhance your ability to fine tune your LTL shipping costs as well as provide faster levels of service than you can generally provide day in and day out. How and why you ask?

Well, that is what they do, all day long. Usually, most individuals in charge of getting rates for shipping have designated second or third functions in a firm. 3PLs concentrate on just that all day long. They have developed systems that provide instantaneous information on truck availability and LTL shipping rates. Those systems, developed by the industry, provide thousands of carriers and 3PL firms (sometimes called load brokers) the ability to post their equipment and loads electronically. These systems then match the carriers with the loads and vice versa. If a 3PL has some Less Than Truckload cargo that must go from A to B, he can then download and find out which carriers are in that specific geographic area and are heading in that general direction in seconds. This would generally take you several hours of calling on the phone without a guarantee of success. It takes them a click of a button.

Of course load brokers provide several other functions as well.

They will vet a carrier, making certain his licensing is up to date, as well as his safety record and insurance. This is an important part of the process that should never be left out.

Experience in the industry is also an added benefit when dealing with 3 PL’s.

There are always circumstances that have to be looked at in order to avoid delays in shipping and/or extra costs. Circumstances like simply finding out if the consignee has a loading dock or if the type of truck ordered will fit into its offloading facility, something I have seen time and time again.

Declared values are another issue.

Are you aware of the limitations of liability when you ship? Like thousands of other shippers, you might not be aware that your Less Than Truckload shipment is covered against loss or damage only up to the limit indicated on the Bill Of Lading. This is usually $ 2.00 /lb (Canada) and $ 0.10 /lb (USA). If you have not otherwise indicated a higher declared value in the appropriate area on the BOL and have agreed to pay for this additional insurance, it can be as much as 2% of the declared value less the standard coverage.

If reducing your LTL shipping costs is a priority in your organization and you would like to know more about how you can fine tune your Less Than Truckload shipping rates, you can visit Skyfer Logistic, a premier third party logistics firm that provides LTL shipping and full truckload rates across the United States and Canada.

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Whether you ship your freight by land, air or sea, obtaining comprehensive cargo insurance coverage is a crucial aspect of global freight management.

The primary benefit of purchasing cargo insurance for global freight is to protect the value of your goods. Your cargo may be exposed to a variety of risks while in transit, with damages or losses occurring during storage, handling or transport, which can seriously impact your company’s profitability.

Comprehensive cargo insurance coverage is essential, particularly for companies who engage in international trade. If an exporter hasn’t been paid for goods before shipment or an importer has made a partial or full payment on goods before receipt of them, they may risk financial loss if their freight is lost or damaged during transit.

In the event of an emergency, a cargo ship may voluntarily sacrifice part of its cargo. This is a principle of maritime law termed ‘General Average’, according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole.

In the above example, the carrier will not be responsible for your share of General Average, only being responsible for any loss or damage to goods due to their own negligence while the goods are in their custody.

The monetary liability of carriers is also limited according to international convention, under which they are exempt from specific losses or damage to freight.

The most comprehensive type of cargo insurance is called ICC A (Marine Institute Cargo Clause A). This is the most widely used international ‘All Risk’ cargo insurance for global freight shipping.

You should ensure that your maritime cargo is covered for a ‘general average’ or your firm, if its of small to medium size, could face a paralyzing debt which could be in the amounts of hundreds of thousands of dollars, which would have to be prepaid in order to release your cargo once landed.

In the case of land shipments, carriers offer limited liability coverage that typically amounts to pennies on the dollar.

At Skyfer Logistic, our transportation consultants can offer valuable assistance in helping you determine the most appropriate and comprehensive cargo insurance necessary to protect the value of your shipment.

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As companies continue to seek out freight services providers in emerging markets for savings and inefficiencies of ocean freight rates, they are faced with the prospect of having to meet additional regulatory compliance requirements.

Partnering with a third-party logistics provider can help to mitigate compliance issues.

Increased global sourcing has resulted in greater compliance risk factors for importers. As a result, jurisdictional and safety regulations are compelling companies to focus more on increasing visibility throughout their supply chain.

As companies depend on an increasing number of freight services providers, they also face challenges in monitoring performance without automated systems to analyze performance metrics.

Many companies are taking proactive measures to minimize compliance risks and increase supply chain visibility by partnering with a third-party logistics provider who can provide them with real-time status updates and effective monitoring and communication in response to any regulatory compliance issues that may arise. A 3PL can leverage the power of Internet Technology and GPS tracking as well as years of transportation industry experience across multiple shipping modalities to effectively monitor shipments in real-time for compliance risks. This applies particularly to international freight services where a shipment must be in compliance across multiple jurisdictions.

While some companies are inclined to partner with an international freight forwarder that can offer the most competitive ocean freight rates above all other considerations as an example, this philosophy is short-sighted in that it fails to account for potential shipping delays and fines or penalties that can ensue from a lack of vigilance in monitoring for compliance issues. Those same companies that secured lower ocean freight rates may come to realize that they get what they pay for in the long-term..

While freight forwarders are liable for violations of trade regulations such as Export Administration Regulations and International Traffic in Arms Regulations, the onus to comply with regulatory requirements lies mainly with the exporter and importer of goods.

It is important to establish and maintain standards of communication with your broker such as providing them with complete and accurate shipping information, License Authorization, U.S. Automated Export System (AES) Internal Transaction Number and by working together to determine correct freight classification.

Maintaining an ongoing dialogue with a logistics provider such as Skyfer Logistic can go a long way towards mitigating compliance issues and can facilitate internal audits of export transaction records to monitor for proper regulatory compliance.

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