freight companies

The Impact of the AB5 State Law on Freight Companies

The California Assembly Bill 5, also known as the AB5, passed in September and is making waves across many industries, including transportation and freight. The AB5 bill limits independent contractors in the state of California, including owner-operator truck drivers and freight companies. It may be a wise decision to take a look at your vendor list and decide who you should work with. Although it may not seem like too large of an issue as a vendor, hiring independent contractors or companies that use independent contractors in 2020 may become a larger issue.

In order to be marked as an independent contractor, the worker MUST follow these three rules known as the ABC Test:

(a) the worker is free from control and direction in the performance of services; and
(b) the worker is performing work outside the usual course of the business of the hiring company; and
(c) the worker is customarily engaged in an independently established trade, occupation, or business.

This law has quite a large effect on many companies who classify their drivers not as employees but as independent contractors, like Lyft and Uber, as well as a large effect on the hiring entity, such as yourself. You should expect to see price increases from many vendors who use independent contractors as their main workforce. In order to still manage their workforce the same as they normally would, they’ll have to increase rates to pay their “new” employees correctly.

However, many of these independent contractors may choose to step away from companies and look for ways to maintain their freelancer status, including leaving California. Unlike many other positions, truckers may benefit more as independent contractors than they would as an employee of a larger company. However, these independent contractors that you may have considered hiring before may not be able to pass the ABC test and you may find yourself in a complicated legal situation as their potential employer and financially responsible for more than just their paycheck. Prepare yourself for next year by investigating your vendor list and reading up on the AB5 law as time goes on to make sure you don’t overpay for services and that you are compliant with the law.

The good news is, Best Yet Express customers will not be impacted because all of our staff, including our truck drivers, are employees. You’ll never have to worry about AB5 compliance or added costs due to legal issues surrounding it. We will continue to take care of our customers’ needs without any negative impact from this law passing.

Click here to learn more about Best Yet Express, our services and what sets us apart from other freight companies.

LTL Shipping

The Benefits of LTL Shipping

Less than truckload freight shipping (LTL) is the term used to describe the transportation of small freight—cargo that does not require the full use of a standard trailer. It’s the perfect solution for shippers with cargo that is too heavy for regular parcel/package carriers but doesn’t require a full truckload. LTL is typically used by shippers seeking to transport cargo that weighs between 150 and 12,000 pounds.

Read on to learn about the many benefits of LTL shipping.

LTL Shipping Decreases the Bottom Line

LTL is an excellent way to minimize shipping costs. When a shipper has packages that don’t warrant a full truckload, then multiple shipments from various shippers will be loaded onto a single truck and transported to their destinations. By combining shipments this way, each customer is only charged for the weight of their cargo and the space used in the trailer.

LTL Boosts Security

Unlike parcel shipments, LTL cargo is usually loaded onto pallets or packaged into sturdy crates. This minimizes the risk of damage, protects freight against wear and tear during handling, and reduces the chance of individual packages being lost.

LTL Reduces Emissions

LTL lessens the impact of shipping on the environment. Combining shipments into one full truck load decreases the number of trucks on the road, which translates into less emissions. LTL is an excellent way for companies to reduce their carbon footprint.

LTL Expands Service Options

When shipping via LTL, the carrier can provide a wider array of services that are not always available with other modes of shipping. This includes special handling, non-commercial shipping, refrigeration, liftgates, inside pick-up and delivery, regular updates about packages in transit and more notification options, among other services.

LTL is Easy to Track

LTL shipments are easy to track—for example, we have a tracking tool that provides real time trip details, alerts and delivery updates. This is ideal for customers shipping time sensitive cargo and makes it easier to plan for accepting deliveries.

Now that you can understand the benefits of LTL, you can decide if it’s the best shipping option for you. Click here to learn more about our LTL shipping services.