2020 has been a strange year across all industries. For trucking companies in Los Angeles, however, a significant upheaval has been brewing for years. A combination of factors has led to plenty of demand, but not nearly enough supply. The economy took a hit when COVID-19 first began, but the limited number of drivers on the road will pose challenges as it begins to reopen. To find out what the future of trucking might look like for local freight companies and their customers, keep reading.
There are few things more frustrating than shipping out an order and receiving a customer complaint that the item arrived broken. It’s a headache for everyone involved, but the occasional damaged shipment is inevitable. Does it mean that the carriers were rough with your shipment? Absolutely not! Damaged packages happen within even the best trucking companies in the country. Here’s why.
Between COVID-19 and wildfires, 2020 has thrown up plenty of roadblocks. This is especially true for business owners and their employees. For local freight companies like us, work has been busier than ever, but in many other industries, that’s sadly not the case.
When work is slow or sporadic, even the most productive team can become sluggish and stressed. Fortunately, business owners can help! Keep reading to learn five easy ways to elevate, engage, and excite your employees. (Even in 2020!)
1. Show Gratitude
Everyone thrives off appreciation, and your employees are no exception. Team meetings are a good start, but teams are made up of individuals. By acknowledging the skills and contributions of each team member, you’re telling them, “Hey! You’re not just a chess piece to me. You’re important to this company and I’m glad you’re here.”
The more your team members feel valued, the more value they’ll add!
Have you ever gone shopping during a rainstorm or unusual weather? You may have noticed that grocery stores and other markets were low on inventory for certain products. This happens because weather has an enormous impact on the freight industry—and in a variety of ways. Even the best trucking companies with the most efficient systems experience delays due to inclement weather. In Southern California, we are also affected by fires that cause obstacles in the form of dangerous conditions and the closing of major highways.
Bad weather is a serious safety hazard for drivers. Driving in bad weather or even after a storm is risky—nearly 50 percent of accidents occur when it’s raining. Truck drivers must use extreme caution so that they minimize the risk of having an accident and ultimately flipping their load. They need to be careful and even stop altogether sometimes when roads are too slippery or gridlocked, or their vision is impaired by rain. Poor weather can also result in roads being closed or the occurrence of a natural roadblock. Read more
In the world of shipping, National Motor Freight Classification (NMFC) codes are critical to the freight classification process. Nearly every type of product or commodity shipped in this country has its own NMFC code that helps carriers determine the cost of any given load. Therefore, it’s essential for freight companies to use the right one to ensure timely delivery and accurate price estimates.
The History of NFMC Codes
When regulators became aware of the need for better industry standardization, The National Motor Freight Traffic Association (NMFTA) developed a classification system. The system breaks every type of freight into 18 different classes, each denoted with a code number between 50 and 500. These codes allow carriers and shippers to determine tariffs and rates for shipments.
How do you lower the costs of freight transportation when trucking industry prices are rising dramatically? Trucking companies are facing skyrocketing prices and cost volatility in the current economy. A recent 2019 update to the “Analysis of the Operational Costs of Trucking” study released by the American Transportation Research Institute (ATRI) shows that almost every carrier cost has risen since 2018.
The average marginal cost per mile for carriers rose to $1.82, a 7.7 percent increase from 2018 to 2019. Fuel costs rose nearly 17.7 percent, marking the highest year-over-year-growth of all trucking costs. The second highest cost growth was the price of insurance, which increased 12 percent. Due to the driver shortage, which is expected to more than double over the next 10 years, wages increased approximately 7 percent while benefits increased around 5 percent. The costs of repair and maintenance also rose to 17.1 cents per mile. While the technology associated with diagnostics and repairs has advanced, there are less technicians versed in the newer equipment. The severe shortage of these technicians has resulted in higher labor costs in this field.
Warehousing plays an essential role in logistics management. Often times, customers don’t have their own warehouses, yet need to store their cargo for a certain period of time. At Best Yet Express, we understand that the journey doesn’t end once your cargo is on one of our trucks—storage is often an important element that needs to be managed. This is why we offer warehousing services at both of our state-of-the-art facilities in Los Angeles. Whether you need short-term or long-term warehousing, we can customize our reliable services to meet your requirements.
Here are just a few of the benefits of using our warehousing services.
The holidays are a busy time and can be especially hectic, especially for retail and parcel shippers. Nowadays shoppers love the convenience of making online purchases that get delivered directly to their doorstep in time for Hanukkah or Christmas day. This increases pressure for parcel carriers to deliver high volumes of freight at a fast rate—and at the busiest time of year.
Here are a few tips to help you master shipping and keep customers happy amidst the holiday chaos.
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.
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.
Make sure to connect with us!