Shipping

Like many industries, the United States truckload capacity market moves in cycles of supply and demand, supply being the number of trucks and drivers that haul freight and demand being the demand for those trucks to meet the needs of the current market.

 

For shippers and brokers, the cyclical rise and fall feels perhaps even more exaggerated in recent memory, given the current COVID-19. In fact, at the end of Q4 in 2019, capacity started becoming tighter than anything we’ve seen before. And now that the economy is rebounding and business is booming for many industries, freight demand is gaining momentum. With an increase in consumer spending and difficulties in finding enough drivers, the capacity squeeze continues.

Another factor in the tight capacity is the low supply of available warehouse space caused by consumers spending on physical goods and companies holding more inventory. A report from CBRE states that we will see an increase to 26% of retail sales by 2025 in the U.S. and globally we will need an increase of 1.5 billion square feet to keep up with a $1.5 trillion uptick in e-commerce sales.

Imported cargo shipments to the U.S. are expected to remain at a record or near-record levels for several more months as consumer spending continues to restart the pandemic-damaged economy. But economists and other experts say that all of that buying is clogging an already overtaxed supply chain.

“I see the back half of the year remaining strong,” Port of Los Angeles Executive Director Gene Seroka said. “The peak season starts for us on August 1st for our back-to-school specials, fall fashions, and then the holidays. But we have to hustle; we still have some cargo in the back lot to clean up before we pivot to peak season.” The Port of Los Angeles reported five months into the year, overall cargo volume is 4,551,445 TEUs, an increase of 48.2% compared to 2020.

“Supply chains are finding it difficult to keep up with demand as shipping capacity struggles,” Hackett Associates founder Ben Hackett said. “A number of vessels taken out of service when volumes were low remain in dry dock while others are delayed in congested ports, which face a lack of manpower both because of COVID-19 illnesses and the tight labor market.

 

A Busy Rest of 2021 Ahead

As we move into a busy fall season and then into the holidays at the end of the year we could face more challenges. Some industries are seeing their defined peak seasons disappear as the e-commerce boom has caused them to have year-round demand. But, we will still see some seasonal increases in an already tight environment.

If the last two years have taught us anything, it is to expect the unexpected! Proper planning and working with trusted logistics partners can help ease any burdens we may face in the rest of the year.

 

See for yourself why businesses are depending on Westgate to improve their shipping processes and to keep them informed of industry trends. 

REACH OUT to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

 

 

 

It’s a “carrier’s market”.

Truckload as well as LTL carriers have been overwhelmed with freight to the point that it is causing service and transit time failures. Drivers and dockworkers are difficult to source. Rail and port congestion, deeply depleted inventories, and warehouse unloading issues are only a few of the obstacles all carriers are looking to overcome.

Shippers are disappointed, while each carrier, in their own way, is trying to ease the backlog. Many of the larger carriers have long-term plans for additional terminal facilities and campaigns to hire more drivers, but in the short-term many are embargoing certain congested lanes. All of this is confusing to shippers, causing them to consider changing their carrier selections. However appealing that may seem, now is not the time to shift carriers. Since they are all working through the same challenges, you will likely face the same issues at the next one.

Generally speaking, carriers have experienced better year over year margins, but costs have also been higher – driver development and wages are the largest expense. Another practice that has added significantly to carrier costs is that many carriers are using purchased transportation for their line haul or last mile delivery in order supplement their capacity.

Additionally, carriers are finding that the metrics used to price LTL over the last 20 plus years is not producing desired revenue. Another complication is that LTL has become a catch-all, aggregating larger e-commerce shipments with shipments of 8+ pallets that previously might have gone as a truckload. Difficulty in sourcing truckload capacity has forced those volume shipments onto the LTL carriers, but the mix and volume have created handling issues.

Profit oriented carriers are developing stronger metrics based on activity based and/or account specific pricing. Carriers want to deal with the most accommodating shippers that have the best freight at the fairest pricing.

How can a shipper be sure they are getting the best value? Westgate can help you sort out the “LTL Chaos”.

CONTACT US today!

 

With 2021 well under way, the logistics industry is off to a solid start and top analysts are optimistic that the transportation industry will remain steady this year.

 

The U.S. economy is predicted to be in store for record-breaking GDP growth. Goldman Sachs raised its forecast for 2021 US gross-domestic-product growth to 6.8% from 6.6% because of the expected larger coronavirus relief package. This will be a large increase especially following the anemic year we had in 2020. The US economy contracted 3.5 percent on an annual basis in 2020, the largest contraction for any full year since the demobilization from World War II in 1946. However, disposable personal income (which subtracts taxes paid and adds government benefits received) experienced the fastest annual growth since 1984 contributing to the increase in purchasing of goods in 2020.

Amid the COVID-19 pandemic in 2020, truckers did an extraordinary job supporting the US economy. The trucking industry’s response to the COVID-19 pandemic created and flood of support for drivers and greatly improved public opinion of the industry as a whole. “Consumers have witnessed now firsthand what we do all the time. Unfortunately, it takes a worldwide pandemic for that to come to the surface, but the recognition is so well-earned and deserved…” said American Trucking Associations President Chris Spear, “2020 was a very defining year for trucking.”

Online shopping was already increasing in popularity, and shoppers being isolated indoors since March of 2020 has only accelerated that shift. “For the last four years, e-commerce growth has averaged between 13% to 17% increase, and last year it was up 14.7%,” says Ron Sides, Deloitte’s vice chairman and U.S. leader retail and distribution. “This year it will go ballistic, somewhere around 25% and it may go higher” bringing last-mile delivery up to unprecedented levels.

The medical transport sector is also geared to sky rocket, though much depends on the vaccine and how fast it is distributed to the general population. American Trucking Associations Chief Economist Bob Costello said, “the vaccine will help return to ‘normal,’ which means sectors that are currently hurting — like services and manufacturing — can bounce back, leading to more freight.”

Fortunately for truckers, pay increases should continue through 2021 as capacity continues to tighten and fleets are forced to compete for drivers. As companies increase driver pay to attract new drivers, it forces others to do the same to remain competitive.

 

We haven’t missed a beat. See for yourself why businesses are depending on Westgate to improve their shipping processes and to keep them informed of industry trends.

 

REACH OUT to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

 

 

Sources:
https://www.piie.com/blogs/realtime-economic-issues-watch/what-us-gdp-data-tell-us-about-2020
https://www.ttnews.com/articles/trucking-industry-experts-optimistic-about-2021-once-covid-over

 

Many company owners don’t realize that the greatest unforeseen cost in shipping are accessorial charges.

 

Accessorial fees, or surcharges, are common with many major carriers. That includes surcharges for residential deliveries, deliveries outside major areas, oversized packages, parcels not in corrugated boxes, fuel, additional handling cost, and others. “Accessorials can add as much as 30% spend with carriers,” said Robert Martinez, founder and co-CEO of Shipware, a consulting firm working with shippers to reduce parcel and LTL spend. “Each needs to be measured, understood, and benchmarked before asking for concessions.”

Most come as a surprise when the freight bill arrives. These are charges that carriers apply to the freight bill for services beyond normal freight costs. They are generally applied after the shipment has been delivered. These costs are difficult to forecast, and recent heightened capacity can really drive up these additional fees if you aren’t carefully checking for them.

The best way to avoid these additional costs is to understand what they are and what you must do to avoid them.

Common Truckload Costs

  • Detention / Layover / Demurrage
  • Additional Stops / Diversion Miles / Circuitous Miles
  • Driver Assist / Count / Clean / Sort & Segregate
  • Hazardous Materials
  • Liftgate
  • Limited Access Fee
  • Pallet Jacket / Shrinkwrap
  • Redelivery
  • After-hours Delivery
  • Non-dock Delivery
  • Residential
  • Scale
  • Deadhead
  • Tolls / Border Crossing
  • Truck Ordered but Not Used

 

Common LTL Costs

  • Advanced Notification
  • BOL Correction
  • Liftgate
  • Detention Charges
  • Oversize / Overlength
  • Reclassification /Reweigh
  • Redelivery
  • Tolls / Border Crossing

 

In some cases, carriers introduce these charges temporarily but they become permanent, like the fuel charges.

“Fuel costs are way down from where they were in 2008 to 2010, but the charges never went away,” said Joel Dunkel, president of Parcel Forum trade show. While COVID-19 surcharges are new, it’s impossible to know whether they will become permanent, he said.

The Surface Transportation Board (STB) decision on demurrage and accessorial costs are part of a wider effort to “promote transparency, timeliness and mutual accountability by rail carriers and the shippers and receivers they serve.” The STB also clarified that the party responsible for demurrage should be the one in the best position to expedite the loading or unloading of railcars. “The intent is to ensure that the recipients of demurrage invoices will be provided sufficient information to readily assess the validity of those charges without having to undertake an unreasonable effort to gather information,” said the board.

Common Intermodal Costs

  • Detention/ Demurrage / Per Diem
  • Overweight
  • Rework

 

Since many of these extra fees are self-explanatory, most can be avoided by establishing a process that starts when the order is entered into your system.

 

Understanding conditions where the shipment will be unloaded is helpful: 

  • Does the site have a standard dock?
  • What type of equipment is used for unloading?
  • Are Lumpers used to unload? How are the Lumpers paid?
  • What are the receiving hours?
  • Are appointment times required?

 

Shipping department procedures are important and should be reviewed. Packaging is important and impacts pricing. The way boxes are placed on a pallet and the way boxes are labeled are important to many customers. Shippers must be careful to follow their customers guidelines.  Shipments might be refused or require rework. All at additional cost.

Shipping departments must use the correct classification on the Bill of Lading and enter the correct weight. Most LTL carriers have scanners to validate the size and weight of shipments. If a delivery cannot be made for some reason, the shipment could be subject to charges for storage, re-delivery, or return. Accessorial charges create a revenue opportunity for carriers and they have become very good at spotting those opportunities.

Westgate Global Logistics can help you identify and avoid these additional costs. CONTACT US to review how our services can help your business.

­­This peak season may seem out of the ordinary because of the pandemic, but the trends in increased e-commerce are most likely here to stay. Even though 61% of shoppers felt safe going to the store for holiday shopping, many brick and mortar stores have closed and may not ever open again.

 

Online shopping was already increasing in popularity, and shoppers being isolated indoors since March has only accelerated that shift. “It’s amazing how e-commerce has converted buying habits for so many people who previously preferred traditional brick and mortar stores,” says Mark Fiorini, President of Westgate Global Logistics, “They were forced into online purchasing initially earlier this year but now it seems they realize all the benefits and have converted their behavior.” With more people staying at home, having packages of groceries, clothing, and household items show up at their door is seductively easier than taking a trip to fight crowds and lines at the grocery store or mall.

Predictions from both Forrester and Deloitte say that online shopping will boom in the holiday season. “For the last four years, e-commerce growth has averaged between 13% to 17% increase, and last year it was up 14.7%,” says Ron Sides, Deloitte’s vice chairman and U.S. leader retail and distribution, “This year it will go ballistic, somewhere around 25% and it may go higher.”

As a result of this boom, transportation capacity has been tight with inventories running low at many places. At the same time, the boom in e-commerce is good for the trucking industry when it can keep up, particularly if companies are connected to order fulfillment. There are more LTL and final mile shipping needs with a high demand for at-home delivery. While LTL has risen, the truck volumes will most likely stay consistent, with the length of hauls and types of shipments changing. Couriers or ride-share type shipments are being seen as innovation in new services, where e-commerce middleman warehouses do order fulfillment and distribution. Because of the increased demand for goods, spot rates were up 10% year over year in July and have continued to trend upward, according to DAT. The current rebound could be a result of suppliers catching up to pent up demand.

The normal holiday shipping surge on top of an already tight capacity market has been challenging for many supply chains. Companies are scrambling to re-evaluate the resilience of their supply chains, looking for more transparency in their value chain, and diversifying the sources of their products so they can shift more easily when hit by a disaster.

When the pandemic shifted purchasing habits to be online, shipping patterns changed. The Resilience360 and Business Continuity Institute survey found almost 15% of shippers had seen their ocean transport significantly affected by the pandemic. The drop in in-store shopping severely disrupted east-west shipping routes, and put pressure on the ships delivering goods to the west.

But now that people are used to ordering more online, the trend may continue even after the pandemic is over. “E-commerce is likely to slow once social distancing is lifted,” said Bob Costello, chief economist at American Trucking Associations. “However, I suspect that some of the market share gains that e-commerce grabbed will remain with e-commerce.”

 

 

SOURCES:
https://apnews.com/press-release/business-wire/b6847791fbed49af98a47d1dcd6293a7
https://www.ttnews.com/articles/e-commerce-spike-likely-outlast-covid-19-pandemic-experts-say
https://abc7news.com/holiday-shopping-covid-19-delivery-delays-online/7365574/
https://www.forbes.com/sites/pamdanziger/2020/09/27/e-commerce-will-explode-this-holiday-and-put-retailers-online-strategies-to-the-test/?sh=2212e1962f18
https://www.supplychaindive.com/news/pandemic-peak-freight-ocean-airfreight-truck-railroad-rates/582718/
https://www.ft.com/video/4a7e38ee-0ca3-47b9-aabf-9afd6a185d19
https://hbr.org/2020/09/global-supply-chains-in-a-post-pandemic-world
https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/

Recently, the Federal Motor Carrier Safety Administration (FMCSA) updated the mandate of the hours of service (HOS) regulations which went into effect September 29, 2020.

 

These rule changes are already helping shipments move more efficiently. Here’s what your need to know about the updates and how they could impact shipping:

  • 30-MINUTE BREAK REQUIREMENT: Drivers can now take a 30-minute break during their 8-hour driving times through an “on-duty, not-driving” status rather than an “off-duty” status.
  • SLEEPER BERTH PROVISION: Drivers have two options for splitting their 10 off-duty hours — 8 hours in the sleeper berth and 2 hours off-duty, or 7 hours in the sleeper berth and 3 hours off-duty.
  • ADVERSE DRIVING CONDITIONS EXCEPTION: This exception maximizes driver safety by allowing another two hours on top of the two additional hours while facing dangerous road conditions like snow or flooding.
  • SHORT-HAUL EXCEPTION: This extends the short-haul exception to 150 air-miles and allows a 14-hour work shift that may occur as part of the exception.

 

So, what does this mean for shippers? In the big picture, the increased flexibility for drivers will mean a smoother shipping process altogether. These HOS rule updates will make more drivers available for longer periods of time, decreasing freight capacity shortages.

 

What can the freight industry expect to see in Q4?

 

Grocery stores and retailers have begun stockpiling groceries in preparation for a possible “second wave” COVID-19 cases this winter season. The fear of another COVID surge is creating a lot of doubt about the holiday retail season, a time that historically sees higher demand for truckers to haul freight.

Manufacturers are also working to stockpile inventory in an effort to avoid the kind of shortages seen in March this year at the beginning of the pandemic. DAT Freight & Analytics statistics show that “American consumers increased shopping by 33% over the course of this year, with nearly two-thirds mentioning that most of their shopping is done online due to the pandemic.”

E-commerce shipping logistics company released a national ShipStation consumer study detailing consumer buying tendencies and the impact the pandemic has had on freight, “The COVID-19 pandemic has largely been a positive for e-commerce companies, as people turned to buying online when cities shut down.”

Freight capacity and rates were already at elevated levels leading into the holiday season amid a possible resurgence of COVID-19 cases. Dean Croke, principal analyst for DAT iQ, the freight data and analytics operation for DAT Freight & Analytics, expects the increased e-commerce freight to put final mile shipping in high demand.

“E-commerce is expected to be at record-high levels during the holidays and retailers are restocking their inventories, especially those coming from international suppliers that had seen difficulty making regular deliveries early on during lockdown,” according to the report for the index. “Logistics services are in higher demand as consumers rely more heavily on e-commerce due to the COVID-19 pandemic. The growth has been significant, with e-commerce up 44% as a percentage of total retail in the U.S.”

It’s impossible to know how these new shopping and shipping trends will impact the overall long-term truckload market, but we do know that retail-related freight volumes are expected to remain high through year-end, while manufactured goods volumes are expected to slow.

 

We haven’t missed a beat. See for yourself why businesses are depending on Westgate to improve their shipping processes and to keep them informed of industry trends. REACH OUT to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

While searching for savings, most companies start by eliminating inefficiencies in outbound logistics. Only a few companies have gone to the next step by taking control of their inbound freight.

 

A structured inbound program will guide vendors, improve inventory control, validate the terms and conditions of the purchase order and minimize the need for expedited shipments, and ultimately provide significant savings.

Not surprisingly, many of the techniques used to save time and money on outbound transportation actually work for inbound freight as well. Having a clear picture of your inbound freight costs is paramount in pricing your products. Leaving the control of your inbound freight to your vendors is ill-advised and can be very costly.

At the end of the month, with little regard for your needs, many suppliers are eager to get freight off their dock so they can bill it. Your savings occur when your supplier optimizes shipments, consolidates loads, and maximizes weight and cube in a trailer.

Terms of sale are also an important factor when looking for savings. Generally speaking, FOB Destination/Freight Collect will allow you to take more control by allowing you to select a transportation provider that meets your service and pricing criteria.

 

Westgate Global Logistics can guide you in the development and execution of a proactive inbound program that can help you optimize your logistics. Our operations are structured to meet your business needs and our supply chain professionals can work on your behalf to help save you time and money.

CONTACT US today to discuss your inbound opportunities 800-637-8001.

 

Keep up to date on industry news with our roundup of topics that could impact you and your business.

 

What Are The Major Changes Impacting Today’s Logistics1

  • A shift in economic and industry fundamentals

Recently, the U.S. economy has been flush with reforms geared towards helping to drive demand and an increase in consumer confidence, leading to more U.S. manufacturing. This, in turn, has created an increase in freight demand which has led to a crippling driver shortage, which is progressively stressing industry capacity causing a jump in transportation costs and a fall in margins, even for the largest nationwide companies.

  • The rise of the “Amazon” effect

Because Amazon has expanded so far so fast, it has created a new standard of consumer shipping expectations. “The effect of Amazon is heightened expectations,” says C. John Langley, a clinical professor of supply chain management and the director of development for the Center for Supply Chain Research at Penn State’s Smeal College of Business. “Next week is no longer good enough. It’s got to be on its way now and arrive at destination within a day or two,” he adds.

  • Advances in frontline and backend technologies

While the technology to fully autonomous transportation and delivery are still some ways away from taking over the logistics industry, there are plenty of safety tech that is already having a significant impact on the industry as a whole. Such frontline safety technologies include lane departure warnings, forward-looking cameras and radar, alerts for drivers when objects are in blind spots, adaptive cruise control, and rollover stability. In addition to all these frontline tech options, there are just as many behind-the-scenes technological advances readily available. Tools like artificial intelligence, machine learning, blockchain, and IoT/telematics have competitive potential for companies that choose to utilize them early.

 

Entry-Level Driver Training Compliance Date Extension2

FMCSA has announced that it is modifying its December 8, 2016, ELDT final rule, “Minimum Training Requirements for Entry-Level Commercial Motor Vehicle Operators”. The rule change will extend the compliance date for Entry-Level Driver Training. FMCSA has extended the compliance date by a full two years, from February 7, 2020, to February 7, 2022 providing them with more time to finish developing the Training Provider Registry (TPR).

Developing the TPR has taken longer than anticipated but is a crucial factor for the FMCSA because it will help streamline the entire process. The TPR is designed to allow training providers to self-certify that they meet the training requirements, provide the electronic interface that will receive and store ELDT certification information from training providers, and transmit that information to the State Driver Licensing Agencies (SDLAs).

 

FMCSA Reduce Commercial Vehicle Registration Fees3

On February 12, 2020 the Federal Motor Carrier Safety Administration announced the final rule that continues to reduce commercial vehicle registration fees in 2020 and 2021. The 2020 and 20201 annual registration fees collected by states for motor carriers, private motor carriers of property, brokers, freight forwarders, and leasing companies has been reduced by 14.45% below the 2018 registration level. It is important to note that the rates are calculated based on the number of trucks a carrier has in its fleet. The final rule stipulates that the fees will remain at this level through 2021, and beyond that unless amended again in the future.

With so many economic uncertainties, policy changes, and technological advances, it’s no wonder the logistics industry is experiencing such a high level of disruption. But what are the major changing forces affecting the logistics and transportation industry today? According to Forbes Insights research, there are three primary disrupting factors:

 

About Us

Westgate has 37 years of consistently delivering expertise in handling specialty loads, maintaining a large network of resources, and exceptional personal service. Westgate’s commitment to growth and providing exceptional solutions for our customers’ transportation needs are what will carry us into many more years of service.

See for yourself why businesses are depending on Westgate to improve their shipping processes and to keep them informed of industry trends. Reach out to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

 

Sources:

1 https://www.forbes.com/sites/insights-penske/2018/09/04/the-4-forces-transforming-logistics-supply-chain-and-transportation-today/#380841acb752

2 https://www.fmcsa.dot.gov/newsroom/extension-compliance-date-entry-level-driver-training-0

3 https://www.ttnews.com/articles/fmcsa-final-rule-calls-reduced-commercial-vehicle-registration-fees

2019 has caused a thinning out of some of the transportation companies and caused the remaining firms to continue to evolve, grow, and adjust to the changing climate. An article from Transport Topics stated that “More trucking firms have shut down during the first six months of 2019 than in all of 2018.” Many companies couldn’t stay in business due in part to tariffs, regulations, and increasing costs.

We summarized some of the headlining industry changes in 2019 and what lies ahead for 2020…

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REGULATORY CHANGES:

Transportation companies continue to face increasing regulations.

  • The FMCSA released the proposal to make changes to its hours-of-service rules in August. The HOS rules were intended to allow for more flexibility for the driver without increasing the maximum time a driver is allowed to spend driving.
  • The electronic logging device (ELD) rule took effect two years ago but December of 2019 was the final date for 100% compliance. They recently published a press release reminding carriers of the deadline and that there “will be no soft enforcement grace period.”

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ECONOMIC RISKS:

  • The main risks for transportation companies are the same ones that could derail overall economic growth–global trade wars and higher interest rates. A further escalation of the U.S.-China dispute would slow economic growth and hurt certain transportation sectors more directly (shipping is the most exposed).
  • The other key risk to transportation companies, higher interest rates, affect economic growth, the capital markets, and–more directly–companies’ interest expense. Transportation companies use large amounts of debt and they are probably ready to handle rising rates as long as they don’t increase too sharply.

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DRIVERS:

Looking at the trucking side of the logistics industry, there has been a major stalling point for the last two years: Too much freight and not enough drivers, which is both good and bad for the industry as a whole. This is good in the sense that the U.S. economy is still robust. The bad news is that carriers have been struggling to recruit and retain quality. Unfortunately, as 2019 comes to an end, more of the same can be expected for the remainder of the year.

The Morgan Stanley Truckload Freight Index (TLFI) said, “we expect TL companies to focus on potential market tightening in 2020 this earnings season given supply side rationalization catalysts on the horizon, including the Drug and Alcohol Clearinghouse and insurance rate spikes, as they continue to grapple with a currently tough operating environment.” Their sentiment survey showed an overall negative outlook regarding rates and supply.

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Looking Forward into 2020

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DRIVER SHORTAGE:

The truck driver shortage has been a serious issue through 2019 and is expected to continue causing issues well into 2020. One reason it has been so difficult to recruit and retain quality drivers is the demand for salary increases. Good drivers expect to see salary increases of as much as 20% to 50% over what they were paid just a few years ago. You can expect to see a major jump in driver recruiting efforts, going so far as the government lobbying to lower the commercial driving age to 18. Fleet carriers will put pressure on insurance companies to take a risk on these non-traditional, younger recruits in order to relieve the pressure. The FMCSA’s Entry-Level Driver Training (ELDT) regulations go into effect in February of 2020. Their intent is to raise the professional standards for new drivers with new training requirements. This training requires aspiring drivers to complete a curriculum of basic working knowledge and behind-the-wheel (BTW) instruction with one of the FMCSA’s registered training providers. This could result in more fully-trained drivers and help combat the shortage.

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CLAIMS:

The good news is that fatalities due to crashes have decreased in the last decade, however, there have been more crashes resulting in severe bodily injury. While this data may seem conflicting, the reason is because of increased speed limits and the increasing use of safety equipment in vehicles. The high dollar amounts for these severe crash claims have taken the insurance industry somewhat by surprise and these increased costs will undoubtedly be passed onto the carriers in the form of higher premiums and deductibles in 2019 and 2020.

The growing cost of insurance and claims litigation will only increase the pressure felt by carriers to reduce the crash frequency, avoid litigation and improve DOT compliance. ISS scores, drivers, maintenance and ELD equipment will be a major focus for insurance carriers in 2019 and 2020. “Best-in-class” carriers that are DOT compliance will likely try alternatives like member-owned insurance captives and risk retention groups, which can help ease premium and deductible costs.

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REGULATIONS:

Legislation changes could increase trucking costs. Though more and more carriers are independent truck drivers, it is facing more and more public scrutiny and legal issues. The California State Supreme Court ruled that any independent contractor must be able to pass an “ABC Test,” with what many consider an unreasonably high standard in an effort to discourage using these independent drivers. New Jersey is also scheduled to review a similar bill. These state legislations could start happening in more states and cause problems for owner-operators and potentially increase trucking costs in the affected states.

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CAPACITY:

Inevitably, the freight capacity overloads the transportation industry has been stuck in the past few years will find a balance before too long. You can expect that when supply and demand do eventually balance out, the trucking industry profitability will slow down considerably and there will be a difficult struggle between insurance underwriting and the ability of fleet operators to pay increased premiums and deductibles. Until then, the major players in the transportation logistics industry will continue to grow and turn a nice profit in the meantime.

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About Us

Westgate has 36 years of consistently delivering expertise in handling specialty loads, maintaining a large network of resources, and exceptional personal service. Westgate’s commitment to growth and providing exceptional solutions for our customers’ transportation needs are what will carry us into many more years of service.

See for yourself why businesses are depending on Westgate to improve their shipping processes and to keep them informed of industry trends. Reach out to us to experience our boutique approach to streamlining logistics through an extensive network of resources, trained brokerage experts and unique personal service.

Sources:

https://www.cvsa.org/news-entry/dec-17-2019-eld-compliance-deadline/

https://www.ttnews.com/articles/2019-trucking-company-closures-so-far-have-doubled-all-2018

Less than truck load (LTL) shipping can be an extremely efficient way to move shipments when you don’t need to fill an entire trailer. However, if the LTL shipping process is not implemented well, it can have some potential disadvantages, costing the company more time and money than necessary.

Packing pallets correctly for shipment is a serious safety issue as well and could be full of risk if the business isn’t careful. If your pallet isn’t stacked properly, you risk damaging the product, injuries from toppling pallets or workers tripping over the overhang, and time lost trying to fix the improperly packed pallet.

In this guide, we explain how you can avoid injuries, damage, and claims with a few industry proven tips.

It’s important to consider the following:

    • Pallet, skid, or crate?
    • Proper stacking
    • Shrink wrapping technique
    • Thinking you don’t need help

 

 

PLUS!

We included some ways to avoid common LTL shipping mistakes you could be making that hinder productivity and negatively impact the bottom line…

 

DOWNLOAD your free copy now!

 

Reach out to us for a complimentary review of your packaging to see how we can help optimize your freight processes.