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Transport

May 26, 2023 / By / Drivers • Logistic • Transport /

On May 10th, President and CEO of the Transportation Intermediaries Association (TIA), Anne Reinke, testified before the House Committee on Transportation and Infrastructure on behalf of freight brokers. She addressed the challenges faced by 3PLs and offered solutions to ease supply chain disruptions. Reinke also emphasized the need for a better safety rating system and the fight against fraud in the logistics industry, estimated to cost $800 million.

Westgate has been a long time member and supporter of the TIA, which not only sets the ethical standards for the freight brokerage industry, but also actively lobbies on our behalf regarding important issues affecting our businesses.

Read the full article here: LINK

 

April 10, 2023 / By / Logistic • Transport /

Congratulation to Westgate Global Logistics’ President, Mark Fiorini, for being chosen for the 2023 Lehigh Valley Business’ Power 100.

 

Chosen by Lehigh Valley Business staff, this list consists of the top 100 most influential business leaders from a wide variety of businesses in Lehigh Valley. These leaders improve the local community, bring prosperity, and are considered to be the “movers and shakers” of the area.

We are proud of Mark for all his hard work and dedication to Westgate and beyond. His leadership is valued by all the employees, customers, and carriers that he impacts.

If you would like to read more about the Power 100 or Mark and his accomplishments, you can read more here: LINK

March 15, 2023 / By / Logistic • Transport /

A bill has been introduced to Congress to amend the safety rating process for motor carriers. The upgraded standard would also require shippers and brokers to ensure trucking companies are licensed, registered, and insured before using them. As the TIA and its members continuously put forth efforts to establish a Motor Carrier Selection Standard, this is a small step in the right direction for the freight brokerage industry.

“TIA applauds Congressmen Gallagher and Moulton for their leadership on this critical safety issue. The current carrier selection processes lack clarity, affecting greatly not only our members but also all highway users. This legislation establishes a robust and clear rating process and improves highway safety,” stated TIA President & CEO Anne Reinke.

Read the full article at FreightWaves: CLICK HERE

February 6, 2023 / By / Logistic • Shipping • Transport /

We take a look at the history of the transportation industry and how Westgate Global Logistics evolved along with it.

 

A New Era in Transportation

The Motor Carrier Act of 1980 (MCA) was the beginning of deregulation in the trucking industry and the start of a new era in transportation. It promoted the introduction of a new entity to trucking… Freight Brokerage. The role of the broker was to serve as an intermediary between shippers and carriers, facilitating high levels of communication and customer service to move shipments faster and more efficiently. This opened up a new opportunity for businesses to meet this need and changed how goods are transported across the country.

While these industry changes from the MCA were taking place, our co-founder Tom Fiorini was a manager with IML Freight (a former LTL carrier based out of Salt Lake City). His boss at the time saw great potential in the brokerage business and began the process of leaving IML to start his own freight brokerage. Being a friend and mentor to Tom, he strongly encouraged Tom to consider the same opportunity.

Westgate Breaks Out

Meanwhile, a long-time freight salesperson and acquaintance of Tom’s in the Lehigh Valley, PA area, Don Hunsinger, had already secured a business license to start a brokerage firm. Tom joined him and together they formed Westgate Transportation Inc. in 1983. This partnership continued through the early 1990’s until Tom became the sole owner.

Westgate was founded on our core values – honesty, integrity and trust. This mindset coupled with our focus on remaining a small, streamlined company helped us remain flexible and able to provide personalized solutions to our customers. This structure and mission have allowed us to stand out in the industry as we are able to provide nimble solutions that are unique to our customers’ needs. In addition, both our carrier base and our employees enjoy working with a family owned company where their needs are valued and prioritized. As one of Tom’s ten children, Mark Fiorini joined the company in 2012 and became President in January 2017. Mark continues to focus on maintaining the tradition and culture that Tom built as the company grows.

40 Years Later

As we enter 2023, Westgate is celebrating its 40th anniversary year. Over the years we have witnessed many changes in the industry, including the move from paper to technology and ever-evolving tools. And while Westgate utilizes advanced technology to give their shippers the data and updates they need, they also have the focused support team to monitor it along the way. The newest, sleekest logistics technology is rendered useless if the company utilizing it doesn’t have an experienced team managing it. The highly-trained team utilizing the technology is what sets us apart.

In celebration of our 40th year, we are transitioning to the new company logo and look to reflect the growth and legacy of Westgate. Rest assured that our values, mission, dedication, and commitment to our relationships remain the same.

We dedicate this milestone to the customer base, the carriers, and the company’s trusted employees. We thank our customers for having the trust in us as a reliable partner to provide solutions to their shipping needs and challenges. Likewise, we thank our carrier base for allowing us to represent them, and for providing great transportation services for us and our customers. Most of all, we thank our employees for their dedication, hard work, and integrity in facilitating each and every move.

Remembering Tom Fiorini: a Founder, Father, and Mentor

 

It is with very heavy hearts we announce that Thomas A. Fiorini passed away on January 6th, 2022. Tom was more than just our Chairman and Co-Founder of Westgate Global Logistics. He was our dear friend, our mentor, and our family. Tom impacted each person he encountered with his incredible ability to connect with others and the integrity he upheld in everything he did. He was a hard worker in both his professional and personal life. He enjoyed fixing things and updated his entire home. Most of all, he enjoyed spending time with his large and ever-expanding family. He will be dearly missed and we will carry on his values and vision in how we work and how we live. You can read Tom’s full obituary here: https://www.cantelmifuneralhome.com/notices/Thomas-Fiorini

We are grateful for the firm foundation Tom established for us and look forward to many more years of fulfilling his vision.

CONTACT US

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.

October 4, 2022 / By / Logistic • Transport • Trucking /

New California law adds a little chaos to truckers’ lives coast to coast.

Are independent owner-operators and drivers lease-independent contractors, or are they really employees under another name?

That’s the question posed by AB5, a controversial California law that has other states eyeing similar measures. Now that the law has passed a Supreme Court challenge, organizations like the TIA are studying the effect the ruling might have across the transportation industry.

 

It Started with Uber

AB5 was originally designed as a way to give gig drivers, like those working for Uber, Lyft, DoorDash, and similar app-based services, a fair shake. It codified the “ABC test” for determining if a driver was an independent contractor or an employee. You count as an employee – with all the obligations that entail – unless the company that hires you can prove:

  1. You’re “free of the control and direction of the employer in performing work”; in other words, you’re not subject to hands-on supervision.
  2. The work you do is outside the usual course of the employer’s business.
  3. You’re already working in an independently established trade, occupation, or business of the same nature as the work performed for the employer.

For Uber drivers and the like, the law meant a chance at unemployment insurance, health insurance, sick leave, minimum wage, and everything that goes with a regular job. It went into effect on January 1, 2020.

By November, the ride-share companies had sponsored their own law, Proposition 22, that overrode AB5 and specified that app-based drivers were independent contractors (though it did kick in some health-care subsidies and accident insurance for them).

But other independent contractors – and especially other drivers – were left out.

 

No Dice In Court

The California Trucking Association challenged the law and ultimately tried to bring its case before the U.S. Supreme Court, but the court declined to consider it, issuing a denial without comment this summer.

Different versions of the law passed in Massachusetts and New Jersey attracted similar challenges from groups representing freelance journalists and photographers, saying that a law declaring them employees was a limit on their freedom of speech, but those arguments got no further.

For now, the CTA case is back in a California district court, and the state was trying to have the Owner-Operator Independent Drivers Association (OOIDA) removed from it. The CTA and OOIDA replied with a joint statement saying, among other things, “It makes no sense that the State would oppose the participation of the nation’s largest and oldest organization representing small-business truck drivers in a lawsuit that harms tens of thousands of OOIDA’s members.”

That was in September. At the time this article is being written, it seems likely the court arguments will continue – but the law is already in effect.

 

Now What?

For now, TIA Board Vice Chair Mark Christos is heading up an “AB5 Task Force” looking into three possible impacts the law might have: first, on how brokers will now relate to owner-operators in California; second, on how agents used by brokers will be affected; and third, what broad effects the law will have on California’s cargo-carrying capacity.

The TIA also brought up the wider legal picture in Policy Forum in Washington, D.C. this September, as a part of what they’re calling “supply chain sustainability.” Our President Mark Fiorini attended the forum and is committed to being involved in these critical policy meetings. They’re hoping to get lawmakers to review how dozens of outdated or mismatched regulations are actually shaping the way things get moved from point A to point B.

For owner-operators and other independent contractors, as well as for the motor carriers who hire them, things are still somewhat in the air. Will brokers suddenly have to become employers if their drivers enter California (or Massachusetts, or New Jersey)? Can California-based motor carriers and owner-operators survive what the CTA has called “the costs and burdens associated with shifting to an employer-employee business model”? How will those “costs and burdens” affect prices and plans up and down the supply chain?

Unfortunately, those answers remain to be seen.

 

As Always, Westgate Global Logistics Will Keep You Informed On Industry Issues. We Encourage You To Evaluate Your Business, And If You Have Any Questions, CONTACT US To Discuss Your Transportation Needs.

 

Since this article was written, the U.S. Department of Labor has proposed a national regulation similar to AB5.

 

 

 

SOURCES:
https://www.investopedia.com/california-assembly-bill-5-ab5-4773201

https://www.foley.com/en/insights/publications/2022/07/supreme-court-refuses-challenges-california-ab5

https://www.freightwaves.com/news/california-doesnt-want-ooida-allowed-into-next-steps-in-ctas-ab5-lawsuit

https://multichannelmerchant.com/operations/ab5-upheld-as-supreme-court-declines-case/

https://www.freightwaves.com/news/viewpoint-how-a-supreme-court-ruling-will-immediately-affect-california-trucking

https://3plmagazine.tianet.org/2022/09/06/tia-task-force-to-review-impacts-of-ab5-to-industry/

 

 

September 28, 2022 / By / Shipping • Transport /

While a provisional agreement to try and avoid a halt of service from railroad strikes has been announced, the impact of the struggling sector hasn’t fully dissipated. The nation’s supply chains have been extremely fragile since the onset of the COVID-19 pandemic, and the possibility of a complete railway strike would be a devastating hit to the already volatile economy.

So, what’s the deal?

Railway workers have threatened to strike over unfavorable working conditions such as being disciplined for taking time off – even if it is for doctor appointments and care. They also claim they are overworked and underpaid due to high inflation. The tentative deal was negotiated between the Labor Secretary and the union representing engineers and conductors. It would benefit the other rail union workers as well if the agreement takes effect. Though negotiations are still happening, the new contracts would provide rail workers:

  • a 24% wage increase during the five-year period from 2020 through 2024, with the average rail worker salaries will reach $110,000 by the end of this five-year deal in 2025
  • an immediate payout on average of $11,000 upon ratification and $5,000 in bonuses in the deal that is retroactive to 2020
  • an additional paid leave day a year plus unpaid time off for doctor’s appointments or medical procedures without being penalized under their attendance rules
  • workers will have to pay a larger share of their health insurance costs, but their premiums will be capped at 15% of the total cost of the insurance plan

 

What will this mean for the industry?

The unions are submitting the tentative deal to their members for a vote. And the result will likely be revealed closer to November around midterm elections. However, one of the other rail unions could still organize a work stoppage in the meantime. If the unions accept this proposed deal then we can avoid a strike.

Conditions are improving, such as the U.S. ports having cleared most of the back-logged ships. But there are still some serious supply chain disruptions to contend with, such as high fuel and food prices and a shortage of supplies. The economic issues, back-log, and staff shortages are still happening and causing the exhausting conditions the rail workers are contending with.

 

As always, Westgate Global Logistics will keep you informed on industry issues. We encourage you to evaluate your business and if you have any questions, CONTACT US to discuss your transportation needs.

 

 

 

SOURCES

https://www.npr.org/2022/09/16/1123239993/rail-stike-supply-chain-food-gas-retail-prices

https://www.foxbusiness.com/economy/railroads-unions-whats-next-why-strike-threat-isnt-over

 

July 14, 2022 / By / Packaging • Shipping • Transport /

Packaging is a critical step in shipping freight, unfortunately often overlooked.

Cutting corners by eliminating protective packaging on your freight is a short-sighted decision that can cost you in the long run.

Shipments that move via LTL carriers need to be packaged with even more care. Even the carriers that have the lowest claim ratios experience damage claims. That’s why it is so important to pack your shipments properly to avoid as much product damage as possible.

 

Here are some things to consider when reviewing your packaging:
  • Inner Packing: Interior cardboard dividers, custom form fit molds, simple peanuts, or bubble wrap will help keep your product secure and tightly packed.

 

  • Outer Packaging: More and more shipments are being sent ready to put on the shelves, and while it is tempting to just shrink wrap, it is not enough to protect your product during shipping. Outer packaging such as cardboard or corner boards will offer additional pallet strength and protection.

 

  • Stretch Wrap: Don’t skimp on the shrink wrap. When wrapping your pallet, start at the floor and use several layers all the way to the top. Add security film or tape for higher-value materials.

 

  • Pallet Overhang: Be sure to utilize good solid pallets. They may cost more but will be worth it. It’s crucial to avoid pallet overhang and confine your product to the footprint of the pallet. Plus, most LTL carriers will refuse freight that overhangs the pallets.

In efforts to reduce costs in shipping, decisions to cut back on packaging are at the forefront. And while this may save a little bit of money in the short run, this can be much more costly in the long run. Claims, breakage, collateral damage, and strained customer relationships take time and money to correct.

 

Westgate is here to help you with your shipping processes. CONTACT US! We will be happy to work with you to ensure the integrity of your packaging.

Call us: 800-637-8001

 

 

 

June 2, 2022 / By / Logistic • Transport • Trucking /

Soaring Fuel Prices Putting the Squeeze on Owner-Operators

As fuel prices continue to surge, many of the 350,000 registered owner-operator drivers are looking at changing lanes and becoming company drivers. “It’s not happening yet, but it’s coming,” said William “Lewie” Pugh, an OOIDA executive vice president who worked as a leased owner-operator for 24 years, said of free-agent independent drivers either leaving the business or deciding to change the way they operate.

According to weekly data from the Energy Information Administration (EIA), on-highway diesel pump prices are still hovering around record-high levels, averaging $5.72 a gallon nationwide. On top of the soaring fuel prices due to rising oil prices, flattening demand and lower spot rates are putting owner-operators in a tough spot. As a result, many drivers are looking to change the way they operate by either becoming company drivers and avoiding the fuel mess or by leasing their independent services to a fleet.

 

Freight Industry Downshifts from Hectic Pace for Shipping

As we approach the midway point of the year, the survey-based Logistics Managers Index fell for the first time this year. In fact, it fell from a record high in March to the lowest level since January 2021. However, not every sector in the industry was hit equally. While the inventory and warehousing sectors only exhibited minor changes, the transportation sector showed the steepest drop.

“Despite the slowdown in transportation, respondents still indicate growth in the sector, just at a slower pace than what we’ve seen over the last 18 months,” the report stated. “It can be observed that the two curves have not yet inverted, suggesting that while the frantic pace in the transportation market has slowed down, we have not yet tilted into a full-on recession.”

 

Rail Regulators Want to Speed Emergency Service Responses

Recently, the Surface Transportation Board (STB) announced the upcoming policy changes that will overhaul the existing emergency service rules. The new policy would essentially set up an accelerated response to emergency situations.

The STB mentioned many issues faced by the rail sector, including:

  • tight car supply
  • unfilled railcar orders
  • missed switches
  • ineffective customer assistance

 

“The rail service challenges shippers are currently experiencing are amplified by certain recent conditions but are not new,” STB Chairman Marty Oberman said in a release. “For several years the Board has gathered information showing that the existing emergency service rules are too cumbersome to be of use to shippers in need of immediate relief.”

 

About Westgate

You can always count on Westgate Global Logistics to keep you up-to-date on industry news. Our passion for delivering exceptional logistics services continues to be at our core and is why we have thrived in this constantly changing industry. CONTACT US today to experience how we can improve your shipping efficiencies.

 

 

SOURCES:
https://www.freightwaves.com/news/soaring-fuel-prices-leave-owner-operators-with-tough-choices
https://www.ttnews.com/articles/white-house-eyes-emissions-fuel-prices-congress-finalizes-supply-chain-bill
https://www.ttnews.com/articles/freight-industry-downshifts-hectic-pace-shipping
https://www.freightwaves.com/news/rail-regulators-want-to-speed-emergency-service-responses

 

March 30, 2022 / By / Logistic • Shipping • Transport • Trucking /

Truck Tonnage is Up1

Compared to this time last year, truck tonnage is up over 2.5%. “Demand for trucking freight services remains strong, but for-hire contract carriers are capacity constrained due to the driver and equipment markets. The spot market has been surging as these carriers can’t haul all of the freight they are asked to move,” said Bob Costello, ATA’s chief economist. “So the fact that the tonnage index hasn’t fully recovered is a supply problem, not a lack of demand.”

In fact, demand has been on the rise since the beginning of 2021. According to the National Retail Federation, retail sales are expected to continue to rise in 2022. “NRF expects retail sales to increase in 2022, as consumers are ready to spend and have the resources to do so,” NRF CEO Matthew Shay said. “We should see durable growth this year given consumer confidence to continue this expansion, notwithstanding risks related to inflation, COVID-19 and geopolitical threats.”

Even though the expected growth rate for 2022 is lower than the 14% annual growth rate we saw in 2021, it is stronger than the 10-year, pre-COVID-19 pandemic growth rate of 3.7%.

 

Women in Logistics2

Many women are taking advantage of the opportunity to work in the logistics industry and contribute to a field that is often considered the backbone of American society. However, women’s presence in the industry is still lacking. In fact, men make up about 90% of the driving and warehouse positions and 70-80% of the positions in the 3PL space.

Are we lacking women in logistics? If so, we’ve come a long way, but what else can we do? How can we attract female talent to the industry? The TIA’s Women in Logistics (WIL) committee has a few plans in this regard, including speaking to high school and college-age students to introduce an industry they might not have ever considered.

 

Save Money with Expedited Shipping3

As shipping delays and supply chain issues continue to disrupt the logistics industry, a huge issue businesses are struggling with is shipping and receiving products on time. These disruptions can cause companies to miss deadlines, leading to the loss of valuable customers and vendors.

However, expedited shipping services can help mitigate these issues and save you money in the long run. Westgate has almost 40 years of experience as a freight broker. We can identify the quickest and most cost-effective transportation methods while also helping to prevent financial loss caused by absent or late shipments.

When you partner with Westgate, we save your account information, needs, and special requests in our customer database. That means that every time you ship with us, you’ll spend less time explaining your situation, getting your inventory on the road and on its way even faster.

 

When you have goods that need to be delivered, there’s no time to waste. LEARN MORE today to find out how we can help you with your shipping needs. CONTACT US today to request a quote!

February 11, 2022 / By / Delivery • Packaging • Shipping • Transport /

When a freight carrier delivers freight to your dock, whether LTL or Full Truckload, you should expect to receive the goods intact and in good condition.

 

Unfortunately, that is not always the case. Sometimes there is visible damage, or the count is over or short. Sometimes there is damage inside the container that is not visible from the outside, referred to as concealed damage.

It is important to take the time to inspect the shipment when it arrives and notate anything that is irregular. Documenting and taking pictures of damage is always helpful if a claim is to be filed with the carrier. Damages and shortages can be costly, so it is in your best interest to report the situation and sign the receiving documents accordingly.

 

Steps for Receiving Freight:

 

STEP 1: Anticipate Delivery

Know what is coming and be prepared to unload the freight.

  • Do you have the proper equipment to unload?
  • Is there a dock for delivery, or must freight be delivered to the ground?
  • Can you accommodate a load that is double-stacked?
  • Allow enough time to inspect whatever you’re receiving.

 

STEP 2: Inspect the Packaging

If there is any visible damage to the outside packaging, take a picture and check out the product inside.

 

STEP 3: Document Any Damage

Notate the damage or missing items on the POD (Proof of Delivery). Be specific. For example, in the case of a shortage write, “Order Incomplete, 2 of 3 pallets delivered (pallet containing XXX missing)”.

  •  If reasonable, the shipment should be accepted and steps should be taken to minimize the loss. If it is absolutely necessary to refuse a shipment, advise the shipper so they can work with the carrier to avoid further damage or loss.
  • When accepting damaged freight, take pictures and store the entire shipment in a secure spot to facilitate inspection. Retain all the packing material as well. Without all the material for inspection, the carrier may decline your claim in full.
  • Report the damage or loss to the carrier as soon as possible. Claims must be reported within 5 days of delivery and a formal notice of intent to file a claim must be issued.
  • Establishing this procedure as a standard protocol can help avoid additional fees or complicate claim resolution.

 

STEP 4: Review and Verify

Review the BL (Bill of Lading/ Delivery Receipt) to verify any accessorial being charged. If that service (Lift Gate, Inside Delivery, etc.) was not ordered or rendered, mark the Delivery Receipt / POD accordingly.

 

STEP 5: Sign and Date

Be sure the driver signs and dates both your copy and the driver’s copy of the Delivery Receipt / POD. Also, print and sign your name clearly on the Delivery Receipt / POD. Be sure to keep a copy of your Delivery Receipt / POD.

 

Have questions about the right way to receive a freight shipment or what to do if things don’t arrive as they should? CONTACT US today to speak with a shipping specialist. Work with Westgate Global Logistics to minimize complications caused by poor receiving procedures.