How Electronic Logging Equipment Affects Freight Rates
Technology is dramatically changing the way the trucking industry works. From tracking shipments to managing service hours, technology plays a part in every shipment today. As a freight shipper, freight technology directly impacts how you manage your freight needs. A good example of industry-changing trucking technology is the use of electronic logging equipment.
Manage service hours
The biggest change that will happen with electronic recording devices is the time it takes to deliver goods. The new recording device uses wireless connectivity and electronic tracking equipment to record service hours for all commercial truck drivers. These logs record when truck drivers start and leave work as part of their service hours. According to service time rules, drivers can only drive for a certain amount of time before they need to stop and rest. One of the main reasons for the authorization of electronic recording devices is to reduce the number of fake logs recorded. Previously using paper logs, drivers could change their paper logs to change their HOS hours. Reasons Drivers do it, from driving over time to making up for lost driving time due to bad weather. Now, ELD has changed that.
Rate change
The longer it takes for your shipment to reach its destination, the more money you will spend. It depends on how long it takes the driver to manage your shipment. Loss of productivity coupled with ELD-related technology costs is expected to drive up freight rates. While the jury is still out on this, analysts predict a 3% to 5% increase in shipping. As a shipper, you need to be prepared for potential shipping costs as these affect your business.
In this situation, you can take some proactive steps:
Increase delivery times and schedule shipments more flexibly.
If desired, allow drivers to park during off-hours at your facility rather than having them leave the area to find truck parking.
Analyze your routes between 400 and 800 miles to determine how ELD directives will affect deliveries.
Visit the FMCSA website regularly to stay up to date with the latest ELD regulatory news.
Things to Consider When Researching Shipping Rates
When researching shipping rates, your task is to get the best shipping rates possible for your shipping needs. One way is to understand the makeup of shipping costs. Consider the different variables that affect rates and how those variables relate to your shipments.
Fuel cost
A common misconception is that if diesel prices fall, so will transportation costs. In addition to fuel costs, there are many other aspects such as FMCSA regulations and seasonal demands. Also, if you have a contract with a carrier that provides you with on-going freight service, you likely have locked in an inline shipping price that includes a fuel surcharge portion that reflects the price of the fuel pump.
The type of shipping serviceyou need will also affect the overall shipping rate. You can expect to pay more for specialized freight including oversized cargo, tanker transport or refrigerated cargo. These types of transports require more time and effort, as well as expensive specialized equipment. You can save the most on shipping if you're dealing with flatbed freightor a basic dry van trailer, especially if the freight is touchless hitch.
LTL and vehicle
Another myth is that you have to fill a truck with 26 single stacks of pallets to get the goods out. Thanks to the boom in e-commerce, less-than-truckload shipping companies have increased bandwidth. LTL shipping is more accessible due to the supply and demand relationship between shipping customers in the commercial and residential sectors. This means you no longer have to wait until you have enough to fill a truckload to save on shipping.
Consider the cost savings and faster turnaround times you can realize if you choose to ship with LTL freight services. Whether you're shipping to warehouses, retailers, or directly to customers, your products get to customers faster. This enables your business to make more money faster and keep your products on the move.
Time of year
Certain seasons lead to peak shipping. Holidays and summer months are two of the busiest times of the year for operators. However, as produce picks up, spring freight demand will also increase. This also drives the demand for cargo trucks in the event of natural disasters such as hurricanes or tornadoes. Here's a good rule of thumb if you want to avoid skyrocketing freight rates in the spot market. Avoid shipping at the end of the month, before holidays, or at the end of the fiscal year.
Service Hours Rules
This brings us to the most important aspect of any shipping rate. The driver delivering your cargo is regulated by the Federal Motor Carrier Safety Administration as a commercial vehicle operator. FMCSA mandates regulations for truck drivers to ensure their safety and the safety of others. One of the latest regulations to come into force is the Electronic Recording Equipment Directive.
Save on shipping
All of these factors can change the price of shipping from one minute to the next. It is important to understand these variables so that you can prepare for a sudden surge in price.
For the best shipping rates, you want to start the process of preparing your shipment as soon as possible. Depending on what you're shipping, this may involve packing, packing, and placing your cargo on pallets for dry truck loading. If you have flatbed hauling, such as heavy equipment, you will need to collect the make and model, as well as the size and weight of the load. Once you have your load ready and have a solid plan for the size of the load, it's time to decide on shipping. By taking these steps before contacting the company for shipping costs, you can save a lot of backtracking.
Choose your shipping type
Do you ship by full truckload, including 26 pallets or 46,000 lbs? Or would you like to ship some of your shipments using less than full truckload (LTL) freight services? Either is possible, but you need to know which type of shipping service to request.
Choose a trailer
Determine the type of trailer required for loading. If the load requires weather protection and safety, a dry truck trailer is the way to go. However, your load must fit on a 53-foot wall trailer. If you're transporting oversized loads, heavy equipment or vehicles, a flatbed trailer is your only option. Unprocessed liquids and bulk commodities such as corn or grain require tanker trailers. A refrigerated trailer is required for cargo that must be kept at a certain temperature, such as frozen meat or fresh fruit. Know the basic trailer type you need to get a more accurate shippingrate.
Determine the distance
The biggest determinant of shipping costs is how far the goods need to be transported. Get the shipping and delivery destination addresses before contacting anyone for shipping costs. The freight company will calculate the exact mileage based on the actual mileage or short distance mileage. The difference between actual and short mileage is the mileage required to deliver the load. Typically, short-haul miles cost less than actual miles by up to 5%.
While you might be inclined to choose shipping ratesbased on short mileage, keep one thing in mind. Carriers who pay actual miles are generally considered higher-paid freight employers. These high-paying companies are able to attract higher-quality drivers who are more experienced and ready to work with the company long-term. This means for you usually a more specialized fleet to handle your freight and represent your brand in front of your customers.
You can contact individual shipping companies or independent contractors to obtain shipping charges for your shipments. However, time is of the essence, and you want to determine shipping quickly to avoid last-minute shipping surcharges. The easiest way is to contact a freight forwarder such as TJ chinafreight. We'll do the heavy lifting for you to shop around. Our team, working in over a hundred countries around the world, is always ready to help you. This enables you to get the most competitive price possible.
Make sure your load
Whether you hire a freight carrier or work with a shipping agent, you need to protect your cargo. This is where cargo insurance comes in. The shipping company will have its own liability insurance. However, you also need to make sure that the person you choose to ship the goods has adequate cargo coverage to cover the value of the goods you ship. If your load values exceed your coverage limits, consider increasing your coverage.
Flatbed and heavy equipment shipping has unique requirements and considerations that organizations may not realize until they have a pressing need. In today's "just-in-time" supply chain, it's increasingly important to be prepared for the unexpected, as any delay or error can be catastrophic, potentially costing thousands of dollars. Even minor missteps can strain customer relationships and result in business being awarded to competitors. The purpose of this guide is to detail some of the things you need to know in order to transport heavy equipment safely and efficiently while making the most of your resources.
Here's a breakdown of shipping types to help you understand where heavy equipment shipments apply:
Legal load
Legal load is the load that does not exceed the allowable dimensions of the trailer and the weight limit of the trailer
Fully loaded
This is a situation where the shipper's cargo is only moved on a trailer.
Partial Load/LTL
A partial load (or LTL) is when the shipper's cargo is moved on the same truck with someone else's cargo. This helps split the cost of the truck and reduce overall shipping costs. This may increase the time required to deliver the goods.
Oversized cargo
Oversized cargo is any load that exceeds the trailer width and/or weight limits. In the US, most states consider oversized loads wider than 8' 6" or wider than 13' 6". Loads that are too long (combined length) or too heavy (total or per axis) are also classified as oversized, although specific regulations often vary by state.
Flatbed freight is any load placed on a flatbed trailer. Flat loads need to be secured by the driver and exposed to the elements. Since the load on the flatbed is open, a crane can be used instead of a forklift, allowing many large industrial commodities such as large generators, bridges, prefabricated houses and steel pipes to be loaded more efficiently and safely, simplifying transportation. Flatbed trailers can Loads from the sides and top and can accommodate full width loads. Flatbeds are very common in the United States and Canada and are widely used in construction and industrial loads.
Flatbed trailers do not require a permit to carry cargo up to the length of the trailer. This is usually 48 feet to 53 feet long, 8 feet 6 inches wide, 8 feet 6 inches high and no more than 48,000 pounds. It's usually best to reduce the overall weight to 47,000 pounds or less to find a truck, as not all trucks can be extended up to 48,000 pounds, and they generally don't want to haul very heavy loads because they cost more to fuel.
Lowboy and flat mounts are similar. Low-profile trailers - also known as double drop or RGN - have a significantly lower deck height. This essentially reduces the overall height of the load, which prevents the load from falling into an excessive load limit. These trailers also allow higher loads to be transported without the additional cost and safety concerns of oversized heavy equipment loads.
Know exactly what you're shipping
When transporting heavy equipment—especially machinery like excavators, motor graders, and rock trucks—you have to know exactly what you're transporting. Not sure what details or information are important to your shipping provider? Here's a quick breakdown:
The make and model of the device. Knowing the basics is essential for transporting heavy equipment.
Have any modifications been made to the device? Any information that may change the basic specifications of your shipment should be noted.
Exact size and weight. An inch or two off can mean your load requires a different truck or a different route, which can create significant cost differences and delays. Having an accurate weight is just as important, especially when handling any heavy loads, as the difference can mean a different type of trailer may be required to move your load. It can also greatly affect how fast your shipments can move and your delivery schedule.
Package. Be sure to let your shipping provider know how your heavy equipment shipment will be packed. Is it palletized? boxed? Need to cover with tarp?
Photos/any other details. Any other information you can provide to your shipping provider will help that person provide you with the best service and results.
Make sure everything runs smoothly
Bill of lading
Completing the bill of lading for your heavy equipment shipment helps ensure all your i's are dotted and your t's are crossed.
A bill of lading is a document that contains the details of the goods, the place of pickup, the place of delivery, the carrier responsible for the shipment, etc. It may also include pickup and delivery numbers, purchase order numbers, and specific information about what the item is and what is being shipped. If applicable, it may contain customs broker information for cross-border shipments.
If you want to ship consistently, does it make sense to create a PDF document with directions, as well as a contact name and phone number you can give the driver to help avoid additional question calls.
Choose someone you trust
I know it's hard for people to understand what we're doing to help them from a transportation provider's point of view. Hopefully this guide has provided you with the information you need to make better heavy equipment shipping decisions that will benefit your company long into the future. Along the way, I hope I can provide you with insights and information, and TJ chinafreighthelps you understand how your shipping partners can help you achieve better results.
Details to remember when transporting heavy equipment
Understandably, most customers want the best combination of price and service to ship heavy equipment. Often, the company with the most detailed information gets the best prices, the best service, and the most loyal truck drivers. Unfortunately, it doesn't take much to make truckers want to pass on your cargo.
In order for shippers to have the opportunity to receive the best price and best service, they need to ensure that their heavy equipment shipments are attractive to as many trucks as possible. Having as much information as possible - including small details that can have a big impact on truckers and shipping- can help make your shipments more attractive and give you the best results (pro tip: working with a shipping partner can make a big difference Influence how truckers view your shipments and help you get the best price, service and delivery schedule).
Gather important but small details about the actual heavy equipment you are shipping.
When transporting any type of heavy equipment, having as much information as possible is essential to ensure safe and efficient transport. Here is a list of some of the most critical data to share with your shipping partner (or review it with your shipping partner so he or she can help you fill any gaps!):
The value of the commodity. How much is your heavy equipment worth, literally?
The make and model of the device. Be sure to know exactly what you're shipping.
Any modifications made to the equipment. It is important to be aware of any information that may change the basic specifications of your shipment.
Precise size and weight. An inch or two off could mean a different truck or a different route for your load. This has the potential to cause significant cost variances and/or delays. For heavy equipment, the exact Weight is also important, which affects which type of trailer is required. Ultimately, size and weight also affect your shipping costs and schedule.
Package. Will your heavy equipment be palletized or boxed? Need to cover with tarp?
A photo of your device. Photos are a great reference point to make sure everyone is on the same page.
Relevant names, phone numbers and emails. Having this information at your fingertips prevents scrambling. This information should be collected for delivery and delivery and customs brokers (together with account numbers).
Pickup and delivery routes. Likewise, having direction at hand can keep everyone on track and set expectations.
Hours and days of operation for pickup and delivery. If the driver arrives with heavy equipment and the recipient isn't ready or unable to receive it, these details can help prevent a big headache! Customsdocuments. This is especially important for heavy equipment that will cross the border between Canada and the United States.
Take the stress out of transporting goods.
Gathering all this information can be time-consuming. If the thought of collecting and organizing all this information is overwhelming, you may want to consider working with a trusted shipping provider.
In 2016, the U.S. Bureau of Transportation Statistics identified more than 502,000 highway accidents involving large trucks.
502,000
Imagine if safety technology could mitigate even a fraction of these accidents, what is its potential?
Will this lead to a better environment for drivers? Could this help trucking companies reduce their turnover? Could it even mean lower shipping costs?
Why do you need safety technology when transporting goods?
Advances in technology have made us safer in cars, planes, bicycles — even while walking. So it certainly makes sense that security technology has had a considerable impact on shipping freight.
Ultimately, as with any business, investing in security technology is first and foremost in huge demand. Trucking accidents cost organizations billions of dollars each year. The potential savings from security technology are enormous.
For companies that choose a supplier who uses ground transportation to transport their goods, the implementation of security technology can greatly impact your peace of mind and bottom line. This is a core area of research we recommend investigating when choosing a shipping partner, and one of the many reasons why we educate organizations about the challenges and risks of choosing a shipping partner based solely on rates.
Here are some of the latest safety tech innovations in shipping freight
In this article, we will examine the following safety technology innovations impacting the freight industry:
1. ELD
ELD is one of the most talked about safety technology topics in the trucking industry and has been around since the December 2015 ELD Authorization or Electronic Recording Device Rule.
The first compliance deadline passed more than a year ago on December 18, 2017, sending the freight and trucking industry into a storm.
ELD literally tracks driver service hours. In devices that carry property, such as trucks, the order states that drivers can drive up to 11 hours a day after 10 hours off work.
It's a logical assumption that more time on the road = more tired drivers = more accidents. Stories of overtired drivers causing accidents make headlines and affect lives. According to a FMCSA study, trucks with ELDs have an 11.7% lower accident rate than trucks not equipped with ELDs. By their estimates, ELD could prevent more than 500 injuries and potentially save 26 lives.
ELDs are capable of monitoring and recording vast amounts of data about drivers and their trucks, including date, time, location information, engine hours, vehicle mileage, and driver, vehicle, and vehicle carrier identification. In many cases, this information is shared with transportation providers in real-time so that they and the driver are on the same page. Additionally, many ELD systems integrate map and routing data, simplifying the overall use of the technology by trucking and transportation providers.
ELD can provide trucking companies with more advanced data, including hard braking, overspeeding, idling, and more.
2. Front-view camera
Rear cameras have been installed in passenger cars (and subsequently improve safety) over the years, while front cameras are becoming more commonplace.
It was only a matter of time before road-pointing cameras made their way into trucks and shipping.
While safety is always the primary goal, transportation providers are also primarily installing forward-facing video in their truck fleets to protect the company itself and its drivers in the event of any collision. Fraudulent insurance claims cost the industry millions of dollars each year, so attorneys, insurers, and of course fleet managers certainly welcome any opportunity to mitigate that cost and liability.
3. Driver Scorecard
Gamification is a very popular term these days. Gamification affects everything from the food we eat to the number of steps we walk each day and every aspect of our lives.
Yes, it's even all over trucking and shipping.
But the concept of gamification -- or scorecarding as it's known in shipping and trucking -- dates back more than a decade, when transportation providers collected data to identify problems among truckers. This information then goes into a meeting where specific drivers will be called to negatively impact fleet wear due to driving behavior.
More directly related to cost, poor driving behavior directly affects gasoline consumption. A particularly careless driver with bad habits can affect gas consumption by up to 30%, making a huge difference.
So the competition is there to improve your scorecard and avoid the embarrassment of being named on your scorecard.
Safety tech saves lives and impacts your bottom line
What to do if there is a problem during the transportation of heavy equipment
Many shipping providers don't like to discuss the unfortunate reality of heavy equipment shipping (and any kind of cargo shipping).
Sometimes things go wrong.
Maybe the driver arrived at the wrong time to deliver the goods. Or abominably, an accident happened.
There are many things that can go wrong during heavy equipment shipping.
And...well...that's another unfortunate fact. When these things happen, there is usually nothing you can do.
Of course, depending on what goes wrong, there are usually things you can do to mitigate the damage. But the overarching theme here is that once you've picked a transport provider -- especially if you've picked the wrong one, it's often too late to "fix" anything once something goes wrong.
Prevention is the best way to solve problems during the transportation of heavy equipment.
Just like your health, prevention is always the best cure for heavy equipmentshipping problems.
But how do you prevent something from happening in transit? We recommend performing two (2) main tasks to prevent problems when transporting heavy equipment or other cargo:
1. Choose the right heavy equipment shipping provider.
It's worth repeating, and you'll hear us talk about it a lot on the TJ chinafreight shipping blog: choosing the right partner for your heavy equipment and other freight needs is critical. A trusted partner will ensure that all the little details and loose ends are covered to prevent many of the most common problems when shipping goods. and by accident
When something goes wrong, they'll step up and take care of things so your stress is minimized. The difference between working with a trusted shipping provider versus someone who operates at night or isn’t customer and relationship centric is staggering. There are plenty of opportunities to notice these differences, none more so than a problem.
2. Do your due diligence before shipping your heavy cargo.
While a reputable shipping provider will ensure that s/he has all the details needed to transport your heavy equipment and other cargo safely and efficiently, you can prepare and have some details in place when you are ready to ship. In these cases, the smallest details may be the most important, including:
All the details are up front. When shippingheavy equipment and other goods, there is not a lot of information! Even adding more information back and forth can significantly delay permits and strain relationships with the driver hauling your cargo.
Exact pickup location and delivery location, including contact phone number and contact name
Business hours for pickup and pickup
Any special request
Accurate dimensional weight and number of pieces shipped
While there are some important steps to take when transporting any type of cargo, there are some special steps to keep in mind when transporting pipelines. Few products contain such a wide range of material and handling requirements.
Depending on the type of material from which pipes are made, they can be easily damaged in transit, which can lead to soaring costs, construction delays, and other costly and stressful impacts on your business.
Using PVC, coatings, galvanized, cast iron and concrete...to name a few, knowing the unique ways to handle and optimally transport this important commodity will keep your shipments safe, give you peace of mind, and ultimately reward you with great shipping returns invest.
Pay attention to these characteristics to identify a strong shipping partner to ship your pipeline.
When conducting initial research on potential shipping partners to ship your pipeline, look for the following key characteristics:
Flatbed trucking specialists are more likely to understand the nuances of transporting especially large, heavy or unique goods including pipelines.
Access a wide variety of trailers. The company best suited to handle your pipeline shipments will have access to a variety of trailers when and where you need them, with little or no delay. At Loadstar, we can quickly deliver 48ft flatbed, 53ft flatbed 40ft popular trailers, and even steerable pole trailers anywhere, anytime. As an asset-based carrier and 3PL, we have the best of both worlds and are ideally suited to handle your multi-load projects.
A single point of contact for sales, scheduling or any accounting or invoicing related issues means less stress and a stronger relationship with your shipping provider.
Online tracking of all loads gives you extra peace of mind that your pipeline is where it should be and when it is safe.
Make sure your shipping provider has extensive experience with pipelines.
In a competitive environment, few trucking companies or transportation providers will turn away new customers. They might even convince you to work with them by offering you the lowest price.
But these "cheap" prices come at a price.
Every business wants to save money and will likely choose the cheapest price when it comes to shipping pipes. But because of the uniqueness and nuances of pipeline shipping, you must work with a shipping provider who understands and has experience shipping your valuable cargo.
Are your shipping partners familiar with how to properly schedule and load your pipeline loads?
Shipping from here to there. Shipping pipelines should be no different than shipping anything else, right?
Well, not quite.
Especially when transporting pipelines, there are safety concerns and steps necessary to protect the pipeline - and your investment.
Understanding the different ways to load your pipeline and how to secure it can help you best select a shipping partner to transport your pipeline and maximize your return on your transportation investment.
Different ways to load pipelines
There are two (2) typical ways of stacking pipes for loading onto a trailer:
1. Strips
Typically used for yard-to-yard or yard-to-rail transportation, strip loading is often considered the preferred method of stacking pipe, as pipe can be loaded and unloaded in bulk by forklift. Strip loading maximizes the number of pieces of pipe loaded per truck, considering the size and weight of the pipe.
2. Pyramid Loading
Often used for yard or warehouse-to-worksite transport, pyramid loading provides the mobility needed to traverse obstacles and can be lifted by methods other than forklifts. This flexibility is a must when transporting to the job site.
Need help determining how much pipe will fit on your truck? This guide from NASPD can help.
How to Fix Pipe Loads
Once you've decided on the best way to load your pipeline, it's time to protect your load. It is important to have the litter/timber on the trailer deck ready and have the pipe piles/pipes on the side of the load so you can start loading.
Safety when piping
While specifics will vary depending on the exact size and material of the pipe and the type of slab being loaded, there are some common hazards to be aware of when loading the pipe for transport, including:
The weight of the lifted load.
range of elevators.
The location of the pipe.
Size and shape of pipes.
The number and frequency of lifts performed.
Choose the right equipment for loading and unloading tasks. Pinch/Firewire area.
Overloaded or improperly loaded truck/track/trailer (poor weight distribution).
Uneven and/or shifted loads can reduce the overall stability of the load/vehicle.
Missing or damaged straps/tie downs.
Prop requirements on trailer/truck.
Potential energy stored in the load.
Fastening method (tie straps, straps, etc.).
Operates close to overhead power lines or other structures. Ice, snow or other environmental hazards are present.
Worker safety when working from a height.
Correct selection of lifting rigging (chains, slings, belts, vacuum lifts, etc.). A qualified operator must operate the lifting equipment.
Changes in ground conditions as it relates to equipment stability.
It can be a little overwhelming to keep all of these dangers in mind when preparing for shipment, but they are vital to keeping people safe, protecting your pipeline, and worth repeating - protecting your investment.
Oil traders' worries about supply shortages intensified on Thursday and pushed West Texas Intermediate (WTI) prices higher even as the dollar rose and the U.S. government announced it would buy back oil from the state's reserves as early as this fall. to the highest level since March.
By Thursday's close, WTI was up 45 cents at $108.26 a barrel, while Brent crude was up 76 cents at $110.90 a barrel.
Oil benchmarks remain in backwardation, with the spread between the latest two Brent December futures contracts at nearly $13 a barrel on Thursday, more than triple the spread at the start of the year.
OPEC and its allies agreed to increase nominal output by 432,000 barrels per day (bpd) in June. Fatih Birol, executive director of the International Energy Agency, said OPEC could release more oil reserves if needed.
Ajay Parmar, senior oil market analyst at ICIS, said in a research note,
OPEC+ is unlikely to supply the market with additional oil to address the supply crunch as they are happy to see oil prices stay above $100/bbl and they are expected to slowly add oil in 2022.
Another concern for traders is that shale oil has become more expensive to drill and prices have risen sharply. CEOs are reportedly raising annual spending plans to keep crude and natural gas production on track.
APA Corp CEO John Christmann said,
Increasing U.S. oil production will be challenging and financially inefficient given supply chain bottlenecks and shortages of oil equipment and oilfield workers.
Fiona Cincotta, senior market analyst at City Index, said of Thursday's crude oil trading:
Many factors on the supply and demand side are at work, so oil prices fluctuate again. But the market hasn't fully factored in the impact of the EU's ban on Russian oil (voting is still underway), so losses in the oil market may be limited.
