trucking companies

How to Minimize the Impact of Rising Trucking Costs

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.

The best way to ensure you’re not overspending is to work with a service provider you can trust. Weigh all the options your provider offers and check to make sure that you’re only paying for what you need. For example, if your cargo doesn’t warrant a full truckload, you can opt for Less Than Truckload (LTL) freight shipping. In this scenario, you only pay for the portion of the trailer that your cargo uses. This option is commonly used by shippers with freight between 150 and 12,000 pounds.

Cross-docking is another strategy for reducing costs while expediting delivery. Cross-docking services involve unloading freight from an incoming truck and loading it onto another vehicle with little to no storage time. This eliminates the need for products to be put away and warehoused, which saves time and money.

Most importantly, be sure to choose a freight company that keeps their fleet up-to-date and focuses on preventive maintenance to reduce the chance of breakdowns during cargo delivery. This minimizes impact on your bottom line and keeps your customers happy.

Visit this link to learn about how Best Yet Express sets itself apart from other California trucking companies.

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.

cargo

6 Tips for Palletizing Cargo

Good packaging is key to keeping cargo intact throughout its shipping journey. Using a pallet is one of the best ways to ensure your cargo arrives safely and securely at its destination. Pallets are stable transport plates made from wood, plastic or metal that are core components of modern logistical processes. Palletizing your cargo keeps it protected throughout loading, transport and unloading—and makes the entire process faster and more efficient. Pallets also make it easier to move everything from small packages to large bulky items with machinery like a forklift or pallet jack.

It’s essential to carefully prepare pallets and packages for shipping. Read on for tips on properly palletizing your freight.

1. Use Quality Materials

Using quality packaging materials can prevent shipping disasters. Start with good quality boxes that are the right size for your cargo. Get quality packing materials as well—you’ll need sturdy shrink wrap, corrugated cardboard inserts to fill voids in boxes, and either bubble wrap, Styrofoam peanuts or air pillows to cushion package contents. Be sure to seal all packages with quality packing tape.

2. Choose the Right Size

Look for a pallet that is big enough to hold your cargo without hanging over and sturdy enough to support its weight. Avoid pallets with broken boards or protruding nail heads.

3. Properly Pack Each Box

Make sure each individual box is packed well before loading it onto a pallet. Boxes should be full, with no air spaces and an even distribution of weight. The box’s contents can get crushed and damaged if there is air space and shifting can occur if weight is distributed unevenly. Use your choice of packing material, such as Styrofoam peanuts or air pillows, to fill any voids. Seal with plenty of high-quality packing tape.

4. Stack Carefully

Stack boxes together on the pallet, with weight distributed as evenly as possible. Heavier boxes should go at the bottom, with lighter ones at the top. Stagger or align the boxes to boost stability. Stacking the packages incorrectly or failing to secure them to the pallet can result in injury to the handlers or damage to the cargo.

5. Stabilize With Cardboard

Add layers of flattened cardboard to every few rows of boxes and to the top and bottom to improve stability and weight distribution. Add cardboard corner beads to protect against damage to the corner edges. This strengthens the entire pallet and helps solidify any loose boxes. It’s especially helpful when shipping several small packages rather than just a few larger ones.

6. Go Big With Shrink Wrap

Use high-quality shrink wrap to secure everything on the pallet. Wrap the pallet three to five times to keep packages from coming loose. Twist the wrap to strengthen it as you secure the boxes. Start at the bottom and work your way up, but only wrap the top partially. This ensures that your cargo won’t separate from the pallet while keeping it accessible to forklifts. Further secure your packages by strapping the load to the pallet.

Follow these tips to help ensure the safe arrival of your precious cargo. Click here to learn more about the best cargo transport company in Los Angeles and the surrounding areas.

freight companies

The Impact of Longer Detention Times

A recent study by the American Transportation Research Institute (ATRI) found that truckers are waiting longer at customer docks than in previous years. The wait times associated with both pickup and delivery, known as “detention,” rose significantly since 2014, when more than 1,900 fleets and 1,600 drivers from various freight companies were originally polled. Drivers reported a 27.4% increase in delays of six hours or more when they were surveyed again in 2018.

This research conducted by the ATRI, which is the independent research arm of the American Trucking Associations, brings awareness to the full financial impact associated with detention times. As truckers spend longer time periods waiting at loading docks, this cuts into revenue and gross profits for freight companies and drivers, and ultimately, increases consumer costs. According to a 2018 report by the Department of Transportation, wait times are estimated to cost trucking companies and drivers over $1 billion per year in revenues lost.

Delays also increase the pressure on drivers, who typically get paid by the mile, to hustle to pick up their next load. While some companies charge hourly detention rates, the length of time drivers wait before the fees begin can vary depending on the contract. As a result, drivers may speed or drive while tired to make up for lost time. This raises the risk of accidents and impacts drivers’ overall health.

Truckers report that it’s common to see 20 to 30 trucks waiting to unload and that detention lasts anywhere from two to eight hours. The 2018 survey found that 40% more drivers reported that the majority of delays were due to customer actions. They cited strained shipping operations and delays at store loading docks or outside distribution center gates. Drivers and carriers noted that well-organized customers who utilized technology, maintained tight schedules and took advantage of flexible business hours were able to reduce delays.

While 2018 was characterized by longer wait times, it was also one of the busiest years for freight companies. The American Trucking Associations reported that trucks moved 11.49 billion tons of freight across the country, a 15.3% increase from 2014. Hopefully, this research will help the industry devise better driver detention strategies for both carriers and drivers, and provide insight to educate customers on better loading and unloading practices.

Click through to learn more about what sets Best Yet Express apart from other freight companies.

What is a Liftgate Service and Why is it Important?

What is a Liftgate Service and Why is it Important?

One of the more commonly overlooked services in the shipping industry is called a liftgate service. It is required for many companies, especially those in residential-style buildings. A liftgate service is required in some instances, but it does come with an extra fee. Since shipping companies often must explain why it is required and why there is an extra fee, here are some common questions and answers.

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Driver Shortage vs Capacity Shortage | Best Yet Express Trucking

Driver Shortage vs Capacity Storage

Freight markets have seen some changes in 2019. The entire shipping industry is seeing changes from several critical points. While some carriers have had steady and reliable contract business, the more common transactional spot market is having a tougher time.

The two main areas of influence are the driver shortage and the issue of capacity storage. Each is slightly different but have a large impact on the current conditions of the freight market.

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Shipping Companies and the Economy | Best Yet Express Trucking

Shipping Companies and the Economy

Every industry is affected by the economy, but nowhere is this truer than the trucking and shipping industry. The highs and lows of the economy have direct correlations to the number of shipments processed, docked, warehoused, and trucked from every location.

Whether you’re on the sending or receiving end of a shipment, it’s important to pay attention to these shifts in the economy so you understand how it could impact your business.

The aspects of shipping that are most likely to change during economic highs and lows are the volume of loads on the road and the employment needs of trucking companies.

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What Costs Are Included with Shipping? | Best Yet Express Trucking

What Costs are Included in Shipping?

There are several factors that determine the cost of shipping. Effective freight shipping requires specific details and information regarding the freight before anything can begin the journey from point A to point B. This leads to a common customer question: what is included in shipping costs? Here is a quick break down of some of the factors that determine the final shipping price.

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Trucks Warehouse

Strengthen Your Brand with A Competent Last Mile Delivery Service

For businesses in the on-demand and retail industry, the last and most critical step in their supply chain is the one with the most problems. This last step, universally known as last-mile delivery, involves the movement of products from their respective distribution centers to the final destination (end users). Although last mile delivery is at the tail end of the supply chain, it plays a decisive and crucial role in how customers view a business. In most cases, it is the benchmark used to evaluate the efficiency of a business’ supply chain. Read more

Top Ways Of Recruiting The Ideal Truck Driver

If you work in the trucking industry you know that a major obstacle, if not the most difficult obstacle today, is driver recruiting and the obvious driver shortage. They say that the shortage is, in part, due to the large number of truck drivers retiring from the industry as well as a smaller number of individuals from the new generation who are willing to take on the truck driving profession. The slow increase in driver pay over recent decades and the physical demand play major roles in less drivers entering the market. Read more