/ By tjchinafreight ivy / Shipping

What is dual brokerage?

What is dual brokerage?
What is dual brokerage?

What is dual brokerage?

Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. (i.e. after accepting a proxy load, if the broker re-proxies the load to another carrier, this is double proxying.) That's not what a broker should do.

Some background

Brokers, carriers and freight forwarders are the three recognized forms of transportation providers. "Dispatch services" are new to the market and try to circumvent the rules by acting as a broker, carrier or both...without abiding by the rules and regulations of either party. This means that shippers have no legal protection when it comes to delivery services.

As part of the regulations, shippers should know who they have contracted for goods and whether they have contracted with a broker, carrier or freight forwarder.

It is generally accepted that an entity (company) should be one of three: a broker, a carrier or a freight forwarder. However, it is common practice for carriers (especially) to accept more loads than the trucks they own and then "lay off" the extra loads to other carriers. These carriers may or may not have broker authorization...but in either case act like a broker (and re-broker) without disclosing (i.e. act like a co-broker).

Companies that refer freight are notorious for "disappearing" and don't pay the carrier or break up or hold the freight hostage until the shipper (broker) pays. In general...if you don't follow the rules you are doing it on purpose and for a reason...

Going back to dual brokerage...this practice has many risks and relatively no benefits. When one broker hands over their cargo to another, they no longer know who is actually handling the cargo, or if they are using the proper licenses and insurance, nor can they track the cargo.

While technically legal, dual brokerage is a contentious issue in the shipping world. (Side note: It may be illegal if a broker accepts payment for an agent shipment, forwards it to another shipping company, and then does not pay the carrier after the shipment is shipped.)

Freight brokers can avoid double brokers by not "biting too much". In other words, if you can't tow the goods yourself, don't say you can tow the goods. If you cannot handle shipping and need to pass it on to another broker, you must do so with the client's consent.

Dual brokerage should not be confused with joint brokerage, which can be a beneficial practice. Co-brokering is when a freight broker cooperates with another broker to meet demand - a collaboration that is known to all parties. Ultimately, co-broking is there to help clients. Sometimes brokers have a specialized niche, so it makes sense to co-broker with the company instead of rejecting client requests.

/ By tjchinafreight ivy / Shipping

Deliver your product on time

Deliver your product on time
Deliver your product on time

How to help ensure products are delivered on time

1. Understand the reasons for poor on-time performance

There are a variety of factors that can affect shipping times, both within and outside of your control. Everything from road construction to poor planning can lead to delays. As the shipping industry becomes more volatile, external risks increase. That's why it's important to work with a logistics professional to help ensure everything within your control is properly managed. For example, understanding how and when to implement short-term shipping fixes and how to handle the supply chain is critical to staying on track. TJ chinafreight can help!

2. Learn about transportation

There are many ways to ship products from point A to point B. In order to deliver your product on time, it's important to understand what's going on between these points. Truck loading, air freight, trains, cargo ships… the list of options available is extensive. Knowing what to use and when to use it is the key to maximizing efficiency. It is also helpful to understand the strengths and weaknesses of different industries and how they work together.

3. Simplify your supply chain

Improving supply chains involves identifying weaknesses and identifying alternatives. For example, complex supply chains tend to drive higher levels of customization and complexity among manufacturing partners. By diversifying your customer base, you won't be as interdependent as other companies. More successful supply chain tips can be found here.

4. Communicate with your logistics broker

Your LTL shipping partner is here to help you, but they won't be able to help unless they know the full story. Hiring an LTL freight brokerage is a smart move for your shipping needs, especially if you are on the same page as the broker. At TJ chinafreight, we strive to get things right the first time.

Ready to switch? We would love to work with you!

/ By tjchinafreight ivy / Shipping

What to expect from supply chains in 2022

What to expect from supply chains in 2022
What to expect from supply chains in 2022

As far as supply chains are concerned, we are still "in" the midst of a pandemic. Supply chains will continue through 2022 amid the pandemic. The drivers of the surge in demand, the bullwhip effect, labor shortages, political agendas and elections, Fed policy, and oh yes… the rest of the Covid infection are all interconnected. Supply chain expectations in 2022 are a complex issue!

For 2022, I expect:

  • Economic growth will continue, but at a slower pace to 2-3%
  • By 2022, macro-level transport networks will "catch up" and normalize
  • Less-than-truckload carriers are pushing above-average general rate increases while adjusting other tariff rules to discourage certain shipments, such as over-lengths. At the same time, carriers will add trucks and drivers wherever possible, creating a potentially competitive rate environment in 2023 or when the economy slows.
  • FTL operators will see rate peaks before EOY in 2021. Higher contract rates introduced during 2021 will keep prices above multi-year averages, but rolling stock growth is expected to soften by EOY 2022 as new trucks are delivered.
  • Small-package operators, already close to a monopoly, will see astonishing universal rate increases in 2022 after 2021. They are building the last mile network of the future and increasing profits for shareholders.
  • Ocean carriers as a group have been the most disciplined during the pandemic, and they will continue to discipline themselves in 2022 by limiting volumes early and often raising prices. They just made too much money and it wasn't worth it. However, container traffic will normalize by mid-2022, which will allow restrictions to be cleared and return transit times to be more reliable. Don't expect interest rates to return to pre-pandemic levels...forever.
/ By tjchinafreight ivy / Shipping

Your Holiday Package Shipping Guide

Your Holiday Package Shipping Guide
Your Holiday Package Shipping Guide

What is parcel shipping?

Package shipping is the shipment of boxed items weighing 70-150 pounds or less, depending on the carrier. These are smaller packages that can be easily moved by a person without assistance.

When should parcel shipping be used?

For smaller loads, businesses will want to consider parcel rather than LTL shipping. Packages are a more flexible and generally economical option for people who ship several small packages at a time.

What is the package shipping fee based on?

Carriers calculate package rates by looking at three items:

  • Service Level
  • Area
  • Weight

In terms of service level, the carrier considers whether the shipper requires ground or air service. The origin and destination postal codes of the shipment come into play under this zone. The actual or dimensional weight of the package will also affect shipping rates.

Pros and Cons

There are many benefits to package shipping, including the flexibility to deliver your shipment anytime during business hours, fast overnight shipping, residential delivery, and increased tracking capabilities through multiple transfer points.

However, these transfer points do increase the risk of cargo damage, delays and loss. Unlike LTL shipments, where goods are palletized and securely organized on trucks, packages are placed loosely and are more likely to be damaged or lost. Properly packaging and labelling your items is critical.

/ By tjchinafreight ivy / Shipping

Logistics Term

logistics term
logistics term

There are many industry terms in the logistics world! We've put together this short logistics glossary to help you familiarize yourself with some common terms and concepts you may encounter.

3PL: Sourcing and arranging many services on behalf of clients, from shipping to warehousing and everything in between. Learn more here.

Bullwhip Effect: Companies must constantly predict what customers want to buy. Without a crystal ball, they must make forecasts based on other factors such as industry trends, supply chain structure and inventory. The bullwhip effect is a term used to describe when this complex transport process is disrupted. Learn more here.

Digital Freight Brokers: Digital freight brokers connect shippers and freight companies through mobile apps or online marketplaces. Learn more here.

Double brokerage: Double brokerage occurs when a freight broker accepts cargo and then hands it to another freight broker without telling the client. Learn more here.

Expedited Shipping: Expedited shipping is a faster method than standard shipping. Typically, expedited shipments do not stop anywhere between the pickup location and the delivery location, resulting in shorter transit times. Learn more here.

Freight Broker: A person or company that oversees efficient shipping and handling logistics. Learn more here.

Cargo Insurance: Gives you extra protection in the event of loss or damage to your cargo. Learn more here.

HAZMAT Shipping: Shipping of hazardous materials. Transporting hazardous materials (HAZMAT) includes not only highly toxic chemicals and nuclear waste. Hazardous items include nail polish, perfume, batteries, and even hairspray. Learn more here.

Inbound Freight: Refers to raw materials and raw materials entering a business from suppliers or suppliers. Learn more here.

Incoterms: Colloquially, Incoterms are just a way of clarifying the roles and responsibilities of those involved in the shipping process. Learn more here.

Industry 4.0: Industry 4.0, also known as the Fourth Industrial Revolution, is the continuous automation of traditional manufacturing and industrial practices using modern smart technologies. Smart factories, 3D printing and smart sensors are just a few examples. Learn more here.

LTL Shipping: Less than full truckload, or "LTL" in industry slang, is a cost-effective alternative for smaller shipments that cannot be fully filled with trucks. Learn more here.

NMFC codes: In the shipping world, the National Motor Freight Classification or NMFC codes are used to help define and regulate products. In LTL shipping. NMFC codes are an industry-wide method of defining shipping rates. Learn more here.

Outbound Freight: Refers to the shipment of finished goods from a business to a customer or distribution channel. Learn more here.

Package Shipping: Package shipping is the shipment of boxed items weighing 100-150 pounds or less, depending on the carrier. These are smaller packages that can be easily moved by a person without assistance. Learn more here.

Transportation Management System (TMS): Global research and consulting firm Gartner defines a Transportation Management System or TMS as a solution "for planning shipments, grading shipments and shopping across all modes, selecting the right route and carrier, and Manage shipping orders and payments." Learn more here.

Full truckload: Full truckload is when the shipper pre-orders a full truck or tractor trailer. The idea is to load the tractor trailer to full capacity. Truck loads are usually picked up at one location and dropped off at another, usually without any stops along the way. Learn more here.

Supplier Verification: Supplier verification is the process of confirming that a supplier is a legitimate entity. Learn more here.

Customodal designs, executes and optimizes transportation logistics programs for businesses of all sizes to support client strategies and enhance client competitive advantage. Carrier negotiation, shipment execution, track and trace, waybill audits, performance scorecards and supply chain visibility are all part of Customodal's added value.

/ By tjchinafreight ivy / Shipping

Are you paying too much for shipping?

Are you paying too much for shipping?
Are you paying too much for shipping?

Are you paying too much for shipping? Shipping costs are a major consideration when determining the cost of doing business. Some companies can make a living with parcel shipping, but most manufacturing companies and the larger industry rely on less-than-truckload shipping at some point. LTL ("less than truckload") shipping can be expensive - especially if approached. Fortunately, there are options that prevent you from overpaying for shipping, and TJ chinafrieght can help you with that.

The first step is to collect data about your current shipping situation.

Before you can determine if you are overpaying for shipping, you must determine what you are actually paying for. It is important to understand what these costs are so that we can predict future changes in shipping costs.

Shipping rates are unlikely to drop anytime soon.

Remember, shipping has operating costs for them, and as those costs rise, they need to increase the rates they charge us to maintain their profitability. 3PL Corporation is in the business of providing customized shipping solutions to its clients and clients. This can mean anything from a dedicated account manager acting as a liaison to your company's shipping department to a dedicated service offering you co-design. Depending on the specific nature of your shipping needs, the type of 3PL service you require will vary.

LTL shipping is an essential shipping service for businesses of all sizes and in all walks of life.

As the economic landscape of the freight industry changes, the cost of traditional LTL shipping can be more challenging to your business bottom line. Fortunately, there are many tools your business has at its disposal to try and better meet your shipping needs. Want to learn more ways to save on shipping? Contact TJ chinafreight today!

/ By tjchinafreight ivy / Shipping

Fuel surcharge explained

Fuel surcharge explained
Fuel surcharge explained

Fuel surcharge explained

A national fuel surcharge is a fee charged by freight companies to cover fluctuating fuel costs. It is calculated as a percentage of the base rate and is usually added to the shipper's freight bill to cover operating costs. Fuel surcharges for LTL and trucking companies are updated weekly...usually on Tuesdays.

Most car carriers charge a "long distance" fee and a fuel surcharge (FSC). They also have many other surcharges or surcharges for additional services, but in general the FSC is only calculated based on line charges. FSC is usually a percentage of line shipping (just like sales tax) or a per-mile rate. LTL FSC is almost always %; but truck loads either way.

Each carrier builds some fuel price assumptions into their pricing model, resulting in line rates. Then, so they don't have to keep updating the whole model, they build a fuel surcharge table that (essentially) says "when the fuel price is between x and y, add z to the line freight to cover the extra fuel cost". These fuel surcharge tables usually start with the carrier's fuel price in its base model.

Where the carrier gets its fuel costs is another variable. Most of them use an internet tool provided by the U.S. government that publishes average fuel prices for gasoline and diesel in the U.S. as a whole and in different regions. Each carrier specifies which index numbers they will use in their fuel surcharge tables.

When you're dealing directly with carriers, it's important to understand how their rates and fuel surcharges work together, and when they update fuel surcharges. Did they quote you before or including the FSC? How often are interest rates right? and many more

When you use TJ chinafreight, the quotation (whether LTL or truck loading) always already includes FSC. Our LTL rates are for 7 days and our truck loading rates are for 24-48 hours. Need more explanation on fuel surcharges? We are happy to help!

/ By tjchinafreight ivy / Shipping

All you need to know about a career in logistics

All you need to know about a career in logistics
All you need to know about a career in logistics

Are you considering a career in logistics? Here's everything you need to know about a career in logistics! Logistics is one of the fastest growing industries and an excellent career path that offers many opportunities. From working in warehouses to sales, from engineering to supply chain logistics management, there are various ways of working in this field. Logisticians are responsible for a business's supply chain, and their typical job responsibilities involve supplier relationships, material transportation, working with customers, and minimizing transportation costs.

Logisticians oversee activities including purchasing, transportation, inventory and warehousing. They can direct the movement of a range of goods, people or supplies, from general consumer goods to military supplies and personnel, and manage the entire life cycle of a product, including how it is acquired, distributed, and delivered.

Logisticians use software systems to plan and track the movement of products. They run software programs specifically designed to manage logistics functions, such as purchasing, inventory management, and other supply chain planning and management systems.

Knowledge about careers in logistics

1. There are many career paths in logistics.

This includes logistics coordinators, inventory analysts, warehouse managers, fleet managers, sales, warehouse workers, and more. It's a fast-paced industry!

2. A college degree is not required to work in logistics.

While some positions require a bachelor's or associate's degree, work experience, industry credentials, and certain skill sets are sometimes more important. Some roles, such as sales, just require a passion for learning. A good logistician has good communication, critical thinking, customer service, problem solving and organizational skills.

3. Logistics business is booming!

According to the U.S. Bureau of Labor Statistics, employment of support workers is projected to grow 30 percent from 2020 to 2030, much faster than the average for all occupations. On average, around 24,500 support staff positions are expected to open each year during this decade.

4. The work environment varies by industry.

This means you can choose the industry you like! Some logisticians work in the back office of a company, while others work in companies that specialize in logistical work, such as trucking companies. Manufacturing employs about 24% of logistics staff.

/ By tjchinafreight ivy / Shipping

Why you should care about more than just shipping

Why you should care about more than just shipping
Why you should care about more than just shipping

When it comes to shipping, it's not just shipping costs to consider. LTL ("Less Than Truckload") shipping can be expensive - especially if not handled carefully, but in addition to cost, there are the overall goals of your business. You want to get the best price possible while achieving your goals as a business in the most efficient way.

There are many advantages to using 3PL. Shipping rates can be confusing, and dealing with the complex world of shipping alone isn’t easy, that’s why having industry experts help. Find out how 3PL can help you meet your supply chain challenges.

When considering who to entrust your freight needs to, it's important to find a partner who can deliver products on time and put your company first. Read the TJ chinafreight way. These are the values ​​that our team upholds and practices every day. We don't want to just sell you something - we want to understand what makes your business a success and how we can help maximize its potential for growth now and in the future.

While shipping costs are an important part of your manufacturing business (or any business), they're not the only factor to consider. We encourage you to contact a partner like TJ chinafreght for the most efficient business solution. We work with companies around the world - finding solutions that make sense for you. You succeed, we succeed!

/ By tjchinafreight ivy / Shipping

Why is my shipment taking so long?

Why is my shipment taking so long?
Why is my shipment taking so long?

If you've ever found yourself wondering "Why is my shipment taking so long?" it might be time to rethink how you move your products. Working with a logistics partner like TJ chinafrieght means better control of your costs, less time contacting multiple carriers, access to an LTL network with nationwide discounts, and unified billing for your convenience. In an industry that is constantly changing and evolving, you don't have to be an expert - that's our goal. Now, back to your original question...

What are the factors that affect shipping time?

Weather

Mother Nature is always in charge, and everything from floods to tornadoes to snowstorms can affect travel and cause product shipping delays.

Current events

Remember when a container ship got stuck in the Suez Canal or a truck stopped near the Canadian border? The logistics world is vast, and there are always things that affect planning. The good news is that when you work with a logistics partner, you don't have to worry about current events. We will solve this problem for you.

Labor issues

Labor shortages can have a major impact on the flow of goods. It will take longer to get from point A to point B if there are not enough truckers or dock workers to deliver the goods.

Now, what if your shipments take so long?

Well, as you may have guessed, if you haven't already, you need to find a logistics partner you trust! Don't just focus on the bottom line, but find a company that takes time to understand your business and find the best solution for your needs.

If you have a logistics partner, the first thing you need to ask yourself is, "Do I need this product now, or do I want it now?" From there, your logistics partner (like TJ chinafreight) can work hard to meet the time and cost related expectations. When it's a "want" situation, there's no reason to pay a "need" cost.