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Intradco Global Transports 89 Pigs Across Russia on Board a Dedicated Charter Flight

Intradco Global
Archives, Global Trade Daily, News

Intradco Global Transports 89 Pigs Across Russia on Board a Dedicated Charter Flight

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In December, Intradco Global teamed up with ATRAN Airlines, an express carrier within Volga-Dnepr Group, to transport 89 pigs across Russia from Vnukovo International Airport (VKO) to Vladivostok International Airport (VVO) on behalf of their client, a pig breeding organization.

Despite the small shipment, the pigs traveled in a dedicated B737F aircraft within custom-made wooden crates designed for optimal comfort and loading.

The pigs were transported to Moscow for their flight in trucks from Denmark, but there were some transit delays. Intradco Global closely monitored the pigs’ journey and coordinated with the airport and airline to ensure that the animals were not subject to any further delays upon their arrival.

Heavy snow presented a further challenge during loading, as the pigs needed to be transferred from their truck to their crates as quickly as possible to prevent them, their crates and their bedding from getting wet. The client, Vnukovo Cargo staff and the Intradco Global team worked in close cooperation to ensure the pigs were loaded quickly and remained dry and comfortable despite the inclement weather.

Image: Chapman Freeborn

Intradco Global Senior Charter Broker, Dane Riecker, said, “Despite the smaller size of this shipment it did not come without complications for us to overcome along the way. The flight was slightly delayed, and the pigs gained size and weight during this period. Due to this, we had to be on our toes to make several changes related to the sizes and heights of crates. Also, customs on the Russian border were quite complex yet we managed to navigate this thanks to the constant assistance of our Russian Chapman Freeborn colleagues.”

This combination of efforts to overcome unavoidable challenges caused by the snow resulted in a successful and punctual flight, despite prior delays. Cargo preparation and loading went smoothly, and the flight departed on time with no further issues during the journey. Dane added, “We are very glad that all the pigs arrived well and are now settling into their new farm.”

Intradco Global is the world’s leading equine, livestock and exotics transportation air charter specialist, with over 30 years’ experience in providing the safest air charter logistics for animals of all shape and sizes. Part of the Chapman Freeborn family, Intradco Global is a member of Avia Solutions Group, a leading global aerospace services group comprising of more than 7,000 aviation professionals in almost 100 offices across the globe.

heavy equipment
Archives, Global Logistics, Global Trade Daily, Trucking

The Best Ways to Save Money Transporting Heavy Equipment

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Many fleet managers and owners eventually need to transport heavy equipment. Although that can be a costly endeavor, there are some practical ways to make the costs more manageable.

Understand Which Factors Affect the Overall Cost

Numerous aspects help determine the estimated costs for hauling your load. For starters, as the size of a piece of equipment goes up, so does the number of people getting the cargo ready for the journey and operating the trucks that bring it to the destination.

Additionally, some equipment needs a forklift or crane to move it onto a vehicle, such as a flatbed truck. In such cases, the costs would be higher than if there was no need for that extra equipment.

It may also be necessary to use packaging equipment so that the heavy loads stay secure while in motion. If a client can provide such supplies themselves, that’s a practical way to cut costs.

The distance traveled also impacts the cost, which is why it’s vital to take the time to explore various routes to reach the destination. Additionally, if a haulage client wants extra services, such as load tracking, those raise the costs.

Once a person becomes fully aware of all the potential cost drivers, they’re in a better position to explore how to keep those aspects more manageable.

Read Freight Company Reviews

All too often, the people who try to cut costs on essential services find they get what they paid for in all the undesirable ways. However, that’s not universally the case.

Online reviews are excellent resources for helping people locate equipment-hauling companies that offer great service and are also reasonably priced. Spending time looking at those helps eliminate the options that may be overpriced and subpar.

Checking out reviews is also a more efficient process when people search for keywords in batches of feedback. Phrases like “best rates in the area” or “reasonable prices, despite my heavy, oversized load” make it easier to determine that a company’s prices are among its most appreciated characteristics.

Choosing the first company that a person finds is not a practical way to save money because there’s a significant chance they’ll pay more than they should. However, looking for price-related feedback is a great way to get steered in the right direction when researching what’s available.

Think About Renting Locally to Reduce Transport Costs

Another way to potentially save money is to assess whether it’s essential to move heavy equipment to the site. For example, the people who plan construction site work often determine it’s more cost-effective to rent locally.

That’s especially true when contractors accept work outside their local areas. Sometimes, such jobs are even on the opposite side of the country. Considering the amount of heavy equipment that may be required for one job, it doesn’t always make good financial sense to transport everything to a site.

Another thing to keep in mind is that certain pieces of equipment may be harder to transport to a site than others and could only be needed for specific job requirements. For example, telehandlers are a type of construction equipment used to reach high places. Although they come in various arm lengths, transporting them could still bring higher costs than renting due to the overall size.

Consider How Owning Transportation Equipment Might Bring Costs Down

When people pay for heavy equipment transportation services often, they may lose sight of how the overall costs can rack up quickly. For example, once they break down the associated costs of each journey and the frequency of those trips, it may become clear that they could save money by owning an equipment trailer and taking care of the trips themselves rather than hiring an outside party.

Many dealers of used heavy equipment offer financing arrangements to make purchases more manageable. The associated repayment periods are usually from one to three years, and there are variable interest rates with these agreements. There are similar arrangements for used equipment trailers.

It’s not necessarily feasible for someone to handle all their own heavy equipment transportation needs. However, that’s why it’s useful to look for patterns associated with the times when they hired a heavy equipment transportation service over the past year. Were there certain types of trailers typically used to meet those needs? If so, that’s a strong indication that investing in such equipment could save money over the long run.

Look for Opportunities to Reduce the Equipment’s Size and Weight

Heavier and larger loads are typically more expensive to haul than those that are smaller and weigh less. Thus, cost-cutting measures could involve disassembling the equipment and transporting it in several loads versus only one.

States have different requirements about what constitutes large and heavy loads, so people should always learn the correct details before moving ahead with a decision. It may seem counterintuitive to ship equipment across more than one load. However, this approach could be a surprising way to cut costs.

People hiring freight specialists to move the equipment should strongly consider getting input from them about how to make the equipment size and weight more manageable. Once a load’s weight crosses a certain threshold, it’s under the jurisdiction of whatever states the trip involves. Thus, splitting the weight across multiple loads could also help a person save money by not paying for the permits required for heavier cargo.

Pack Trucks and Trailers Tightly

In cases where there is not a concern of a load being overweight, people can often end up saving money by ensuring there is no wasted space on a truck or a trailer. Failing to utilize all the available space could mean people pay more than necessary by making several trips to transport everything.

It’s sometimes possible to get everything moved in one or two loads, provided people take the time to figure out the best ways to take advantage of the space. Keep in mind that certain costs, such as fuel and route-related expenses, will be the same regardless of whether an equipment trailer only has one item in it or is packed to capacity.

Therefore, particularly in cases where a person needs to move a lot of equipment at once, they can often achieve better cost-related outcomes by figuring out which pieces to transport together. Paying attention to aspects like the size, weight, and shape makes it easier to figure out what fits where.

Minimizing Equipment Transportation Costs Is an Achievable Goal

It takes time and effort to determine the best ways to keep transportation costs down. However, people should remember that the ideal strategies differ depending on the equipment to move and the available budget.

freight
Archives, Global Logistics, Global Trade Daily, Trucking

6 Tips On How To Properly Manage Your Commercial Freight

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Freight transportation is crucial to the success and growth of many businesses. In fact, it can be said that without it, many companies simply would not exist. But with all of the advantages freight has to offer, there are often many reasons why businesses fail to use this valuable resource. Here are some tips on properly managing your commercial freight business to attract more customers and increase your revenue.

The Role Of Freight In World Economies

Freight is the transportation of goods and materials from one location to another. It involves logistics, which is the management of products in a supply chain. Freight also includes customs and border crossings when items are exchanged between countries. Without freight, countries would not be able to trade with each other. However, the fact remains that even on a regional basis, freight is necessary to maintain a smooth economy and satisfy the ever-increasing demand of consumers. With the rapid expansion of online commerce over the past five years, freight has become increasingly important in all of its forms. So what are some things that you can do to ensure that you are getting your share of the business?

Maintain Your Vehicles Properly

The importance of keeping delivery vehicles in good condition cannot be understated. They are arguably one of your most significant initial expenses, and by neglecting their maintenance, you could end up with substantial repair bills and lost income due to immobile trucks. This will ensure the safety of the drivers and passengers, as well as the cargo. Furthermore, it will reduce the cost of your truck repairs and maintenance to an acceptable level. It’s a well-known fact that the best way to avoid problems is to confront them before they happen. This is true with vehicle maintenance, as well.

Utilizing a proactive approach can help you avoid expensive and time-consuming repairs that may be necessary after the damage has already been done. To that end, it could be worthwhile setting up a garage in your depot staffed with mechanics capable of performing the relevant repair as quickly as possible to ensure little downtime. A great option is to teach your drivers to perform basic checks before setting out in your vehicles. The training should be done with a combination of videos and demonstrations. Videos would show the driver how to check all required items, while demonstrations would show them what to look for and how to do it.

Hire The Best Drivers

In order to be successful in the freight business, you need to find and hire the best drivers. This is because they are the people that will get your goods from one place to another safely and on time while also complying with all state and federal regulations. One of the factors that you will need to consider when hiring a driver is their past driving history. When you do this, you can better understand how they may perform on your trucking routes. A driver who has experience on routes near yours is much more likely to succeed than one who has no experience in your area. Another critical factor is the amount of time they have been driving for companies like yours. In addition, veteran drivers are likely to be much more skilled than those new to the industry, but you can also expect to pay more.

Invest In Technology

Technology is a powerful tool that can be used to make the freight industry more efficient. It has allowed for the automation of many processes and will continue to do so in the future. Freight companies need to keep track of their inventories and customers’ orders. This means they need a comprehensive yet straightforward system. A freight management software can manage all the inventory and shipment data. It will be able to show companies where their inventory is and what quantity is needed for future orders. The customer-facing website can provide information about returned merchandise, shipping status, and tracking numbers. It will also handle the process for initiating exchanges or returns and providing downloadable packing slips and invoices.

Ensure You Are In Compliance With All Applicable Laws

Compliance with laws and regulations is one of the most critical factors when operating a freight business. It ensures that the business is not in violation of any safety, environmental, or other regulations. A freight company needs to be compliant with the law to maintain its license and stay in business. You should make a conscious effort to stay up to date with any changes in regulation that might occur.

Cover Your Business With The Right Insurance

One of the most important aspects of running a successful freight business is getting the right insurance. Without it, your business can suffer, and you may not recover from the financial repercussions. Your freight company needs to get insurance for its trucks that operate on public roads. You also need commercial automobile coverage for your business use of the truck’s cargo space and liability coverage for any problems that may arise. Plus, if you are shipping hazardous materials, you’ll need additional protection in case of an accident. It’s essential to get all levels of insurance because, without them, your company could be in serious trouble should accidents happen or something goes wrong while transporting cargo.

Manage Fuel Consumption

Fuel consumption is an essential factor when it comes to running a profitable fleet. Fuel efficiency can be decreased by driving too fast, using the wrong type of fuel, and driving with worn-out tires. Plus, if they are not adequately maintained, vehicles will lose their fuel efficiency. Most of this will ultimately come down to driver training and informing them of how you expect them to drive. Some other tips you can follow to decrease consumption include:

-Use a fuel management system

-If your drivers can save more, reward them

-Check the tachograph for speeding infractions

-Optimize routes to make them as efficient as possible

If you want to maximize your ROI, it is imperative that you know how to manage your commercial freight business properly. This can involve ensuring that your fleet is constantly maintained and that your drivers are fully trained, among other things.

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Archives, Global Logistics, Global Trade Daily, Trucking

How Can Hauliers Cope With an Even Higher Demand This Christmas?

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The Christmas rush is something hauliers anticipate every year. But it’s going to be felt more acutely this year with the additional pressures of a driver shortage and Brexit affecting the supply of some goods.

The haulage sector is set to experience its busiest Christmas period on record. On top of the usual increase in demands, there’s the perfect storm of the HGV driver shortage and supply chains impacted by Brexit and COVID. By focusing on increasing efficiency and reducing empty running, hauliers can meet these higher demands and ensure their customers receive the highest level of service.

This means hauliers will need to be even more efficient and prepared in order to meet the demands of businesses and consumers this Christmas.

Here, we cover how hauliers can cope with arguably the most demanding Christmas we’ve ever experienced.

Make planning more efficient

Efficient planning is paramount to success for all hauliers, but never has it been more important than right now. A Logistics UK survey revealed that 96% of hauliers are struggling to recruit drivers, with 13% saying their shortage is severe to very severe. To meet high demands with a potentially depleted workforce, hauliers need to get the most out of their available resources.

That’s where route planning software comes in. By feeding in all the collections and deliveries you need to make, and your vehicle and driver availability, you’ll be able to plan the most efficient routes and get the most out of your fleet.

With these solutions, you’ll have one view of your business supported by real-time information. Your planners can then make informed decisions. In the hectic traffic rush leading up to Christmas, it’s critical you can identify and manage exceptions as deliveries progress because it’s undoubtedly the busiest period on the road.

Eliminate empty running

When you have a larger-than-usual task on your hands to keep up with demand this Christmas, running empty seems even more wasteful than usual. Yet, for many hauliers, this is the case on their return journeys. If your drivers travel back empty from Glasgow to Plymouth on their return journey, for instance, that’s a lot of wasted mileage.

Using a freight exchange platform gives hauliers the opportunity to not only make the most of their journeys but also serve more customers in a time of increased demands. This can help optimize fleets in the short term and also enables hauliers to expand their network to connect with new shippers. Haulage companies with loyal customers but limited resources have the opportunity to subcontract their excess work on these platforms, meaning they can still take on additional haulage loads and get customers’ jobs done.

Allow your drivers to do more in their workday

The changes to drivers’ hours, which means drivers can work up to 11 hours a day twice a week, has been extended once again to January. But we know that making already overworked drivers work longer hours isn’t the solution, especially when many of the drivers who’ve left the sector have done so due to poor working conditions.

Giving your drivers the tools they need to achieve more in their workday is a much better solution. Not only will this allow your business to be more efficient, but you’ll also improve their satisfaction by making their jobs easier. Let’s face it, dealing with paper proof of deliveries is difficult to manage and adds time to their day.

It’s these inefficient processes that can frustrate drivers, cause delays, and even result in them finishing their day later than expected. It’s no wonder that drivers are leaving businesses that aren’t addressing this problem. Using digital tools like electronic proof of delivery and apps that provide real-time details of their deliveries allows them to focus on the job and get more done in their day.

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Archives, Global Logistics, Global Trade Daily, Warehousing

4 Strategies Every Logistics Company Must Start Doing

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On the consumer level, logistics companies are seen as couriers who deliver their most-awaited packages. But for business owners, the logistics industry is an extension of their service cycle. As such, logistics companies have a ton of responsibilities on their shoulders. 

As a logistics company, what practical steps must be done to maximize your clientele’s satisfaction? 

We can look into it in this manner. The primary goals of a logistics company can be broken down into three segments: warehousing, distribution, and transportation. For each goal, there must be actionable steps that your logistic company should do immediately. And if you are practicing it already, maybe it’s time for an upgrade. 

Here are some of our tips. Let’s go! 

Tip #1: Listen to Customers 

We know this is the oldest trick in the book. But, that only goes to show how effective this one is. The question now is how to listen to them effectively, considering that logistics companies cater to two different sets of customers. 

Client satisfaction surveys will never go out of style. You just need to upgrade the method to acquire them. 

To effectively collect data through surveys, make sure that the survey form is accessible. Most survey data now are collected through the internet. On top of that, most of them are composed of 5-7 close-ended questions only. 

Everyone wants it fast and instant nowadays, and you need to take advantage of that. Pose questions such as, “Which of our services are you most satisfied with?” and present them with choices. As much as you can, always provide choices to make the process easier for everyone. 

Apart from surveys, make sure to keep your social media presence known. Be active on social media platforms. 

Some might have hesitations thinking that logistics companies don’t need Facebook, Twitter, or Instagram pages. But, best believe, you do. 

Having one is one of the easiest and most open forms of communication between your clients. It’s akin to practicing an open-door policy in your company. 

You can easily look for customer feedback and provide them with easy solutions without them needing to go through customer reps. It’s a win-win situation for both sides. 

Tip #2: Reduce Waiting Time

Time is an essential aspect of any logistics business. And in the entire process from pick up to delivery, there are several points where you can reduce waiting time. 

First and foremost, ensure that your communication lines are always open and available. Establishing a comprehensive company website is essential in this day and age, regardless of what industry you belong in. 

If you are yet to create one, tap the services of an established web design company. They will handle everything from inputting the essential details of your company down to the overall design of the site. Make sure to partner with a company that prioritizes web design and development. 

Work hand-in-hand with these web design companies so that you’ll come up with a website that best caters and depicts your company’s needs and services. 

This published website will then become the go-to portal of all your clients, new and recurring. With a few clicks, they can check out your services and rates. And if your site also comes with round-the-clock chatbots, then the website also becomes the easiest and most efficient way to reach you. 

Aside from those mentioned above, the website will also serve as your company’s personal tracker. Instead of updating your clients manually about their shipment’s whereabouts, you can just update them through the site by sending them automated emails or chats. On the flip side, your customers can also use the site in the same manner. 

Some logistics companies often disregard the importance of well-designed websites because the services offered are all “offline”, but most of the clients today are almost always “online”. There is a need to bridge this disconnect. 

Tip #3: Understand and Deliver Customer Expectations

As much as goal-setting is fundamental for building businesses, expectations-setting also holds the same weight of importance. A large chunk of customer satisfaction relies on whether their expectations of your services are met or grossly missed. 

Regular and properly-crafted surveys and social media presence can help with this tip as well. But, an even more practical method to achieve this goal is to set the expectations yourself proactively. 

Say, for example, you are a logistics company that specializes in the transportation of goods. Even before a client can demand when they want their goods to arrive, make the first move. Tell them what is expected from your services. 

Provide the details on how you carry out your services. Most importantly, uphold transparency when it comes to dates. When you can pick up orders, when you can deliver, and when you can drop them off. These details are essential for your customers and they should be held as your company’s top priority too. 

Another method to meet your customers’ expectations is to do timely tool upgrades. Something as simple as bill printers can decrease your usual service time. Automatic tape machines also do the same. If you have the capacity to automate more than half of your process, then invest in it.

Tip #4: Research!

Lastly, research will always be your most valuable strategy. The demand in the logistics company started as seasonal, but that doesn’t seem to be the case now. To cope with this shift, full-blown market research is an effective tool to come up with solutions. 

But, that’s not always the case. Sometimes, simple research, such as looking into new trends or new delivery technologies, can catalyze further improvement for your company. 

Final Words

Even if logistics companies handle rough or brunt work every day, that doesn’t mean that you can forego other aspects of the company. Publishing company websites, social media profiles, and regular research should go together with the labor that gets done every day. These strategies keep your company running. 

If you are yet to start these practices, make sure to conceptualize how you can effectively translate your offline presence to the online domain.

Maintenance Inspections
Archives, Global Logistics, Global Trade Daily, Trucking

What New Fleet Managers Can Expect From Maintenance Inspections

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Managing a fleet can be a fulfilling experience, but it also includes a lot of responsibility. New managers must understand and anticipate these responsibilities so that they can operate legally, safely and efficiently.

One of the many considerations new fleet managers must keep in mind is the need for regular maintenance inspections. While anyone in the industry understands that regular maintenance is important, the specifics may be less clear.

With that in mind, here’s what new managers should expect in this area.

Why are Maintenance Inspections Necessary?

First, it’s important to understand that regular maintenance checks aren’t just recommended but mandatory. The Federal Motor Carrier Safety Administration (FMCSA) requires all motor carriers to regularly inspect, repair and maintain all of their vehicles. Failure to do so can result in hefty fines and other legal damages.

Apart from the legality of the situation, these inspections can help fleet managers minimize operating costs. Failing to inspect some components can lead to costly repairs and replacements, so it’s best to catch any potential issues early when repairs are more straightforward.

These inspections are also a critical part of vehicle safety. Without them, drivers may unknowingly be putting themselves and others at risk, as equipment failures can cause accidents.

How Often Do You Need Maintenance Inspections?

Fleet managers should also know how often to perform these inspections to optimize their schedules. Since every vehicle carries unique maintenance needs, the FMCSA leaves some room for interpretation in this area. Fleets must perform inspections at least annually, but some emergency systems, like emergency doors, need inspections every 90 days.

For optimal performance and safety, inspections should be more frequent than the minimum requirement. Diesel vehicles require work less frequently than their gas counterparts, which can help save costs, but it’s still best to check them regularly. What this schedule should look like varies between use cases, but going by miles driven may be more effective than going by time.

What Should Maintenance Inspections Include?

When it comes time for the actual inspection, fleet managers should keep a few factors in mind. First, they can choose to either perform the inspection themselves or have a qualified third party do it. The former option may be more cost-effective, but it also requires a knowledge base and reporting system that smaller companies may not have.

Whether fleet managers perform their own inspections or rely on a third party, they should look for a few specific factors. Here’s a closer look at these specifics.

Qualified Inspectors

The FMCSA outlines some requirements for who can perform these maintenance inspections. These qualifications are fairly straightforward for most of the inspection process. Employees or third parties must have knowledge and proficiency in the necessary methods, procedures and tools, but the FMCSA doesn’t define what that specifically entails.

Brake inspection qualifications are more rigid. Brake inspectors must either complete a state, Canadian province or union-sponsored apprenticeship program or have at least one year’s experience in brake maintenance.

When looking for third-party inspectors, fleet managers should look for these qualifications or, ideally, higher standards. Similarly, if fleets inspect their own vehicles, they should require employees to meet these qualifications.

Parts and Accessories Necessary for Safe Operation

Fleet managers should also understand what specific components and systems they should check. The FMCSA says maintenance inspections must cover “parts and accessories which may affect safety,” which can apply to most parts of a vehicle. Inspectors can refer to the FMCSA’s extensive list of parts for reference, but the most important areas to cover are fairly evident.

Engines, steering systems, brakes, seatbelts, wheels and the like all fall under this scope. Some of these parts will require more regular inspection than others, so fleets should schedule inspections of varying depth. As for how often to inspect each area, it’s safest to go by the manufacturer’s guidelines.

Emergency Features

Vehicles with some extra emergency features need to undergo additional inspections, too. Many buses, for example, have systems like emergency doors, pushout windows and lights marking these features. If fleets have any vehicles with these types of systems, they need to check them every 90 days to ensure they work properly.

These emergency features can mean the difference between life and death in some scenarios, so the FMCSA takes them seriously. Fleet managers should likewise pay close attention to these systems, ensuring they receive more maintenance and inspection than other parts. If there’s anything wrong with them, fleets should repair or replace them as soon as possible.

Driver Vehicle Inspection Reports

Driver vehicle inspection reports (DVIRs) are another important part of maintenance inspections. These are reports that drivers write up at the end of each driving day that identify any potential issues they’ve noticed. Fleet managers likely already collect these records, but they must save them and ensure they meet standards to satisfy the FMCSA.

According to FMCSA guidelines, DVIRs should cover:

-Brakes

-Steering mechanisms

-Lighting devices and reflectors

-Tires

-Horns

-Windshield wipers

-Mirrors

-Coupling devices

-Wheels and rims

-Emergency equipment

Drivers can look at other parts and accessories, too, but these are the only required factors. If DVIRs report any issues, fleets must resolve them before operating the vehicle again.

Thorough Records

No matter what the specifics of a maintenance inspection look like, fleet managers must keep thorough records. Every time an employee performs a check, the company should record it in a safe, accessible place. If the fleet faces an audit from the FMCSA or needs to check the maintenance history to inform a repair, these records are crucial.

The FMCSA requires fleets to keep DVIRs for at least three months and records of annual and roadside inspections for at least a year. That will quickly add to a lot of storage, so fleet managers should consider using an electronic system for recording and organizing this information.

Fleets should also record any repairs they have to perform on vehicles. To help keep things organized, all reports should include vehicle identification information like the make, model, year and serial number.

Maintenance Inspections Are a Crucial Part of Fleet Management

Maintenance inspections can account for a significant portion of fleet operations. New fleet managers must understand these factors to prepare accordingly, enabling efficient, safe and compliant operations.

Every fleet’s maintenance inspections will look slightly different, but these general guidelines apply across every fleet. Managers should take these guidelines, then apply and adjust them to their specific situation. They can then meet relevant regulatory requirements and keep drivers safe.

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Archives, Global Logistics, Global Trade Daily, Trucking

The Importance of Freight Broker Bonds for your Business

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Opening a freight brokerage can be a great way to accelerate your earnings. Freight brokers play an important role within the transportation industry by connecting shippers with transportation companies for trucks required to deliver their goods. While some shippers have contracts with specific trucking carriers, others rely on freight brokers for added flexibility, greater speed of delivery, and lower costs.

Freight brokers are required to comply with the Federal Motor Carrier Safety Administration’s regulations for licensing. There are a few different types of operating authority licenses that freight brokers need to operate within the US, depending on the type of cargo they broker. All of the different types of freight broker operating authority require brokers to meet certain requirements, including being bonded with a freight broker surety bond. Here is some information about freight broker bonds so that you can get started with your business and ensure that it successfully operates.

What Is a Freight Broker Surety Bond?

Also known as a BMC-84 bond, a freight broker surety bond is a type of guarantee issued by a surety company that the principal holder will perform the work as promised. It is not insurance since the principal broker is not protected from liability by the bond. Instead, a BMC-84 bond is required by the government before a broker can become licensed. It is meant to protect the companies that rely on the broker and contract with it for services and to ensure that the broker will comply with the applicable regulations and laws while operating.

If a freight broker fails to fulfill its contractual obligations, a claim can be filed against the bond. However, the surety company is not responsible for paying the claim. Instead, the freight broker must pay claims filed against its bond. The surety company only steps in when the freight broker fails to pay its claim. If a freight broker has unpaid claims, it could lose its surety and its ability to continue operating.

A broker that fails to pay a carrier what the carrier is owed might have a claim filed against its bond. The carrier’s claim will be in the amount the broker owes for the services the carrier provided for the shipper the broker connected the carrier to for the transportation of freight. An unpaid claim against the surety could result in the surety terminating the bond and the loss of the broker’s license. It can also make it more difficult for the broker to secure a new freight broker bond, forcing the broker out of business.

Why Are Freight Broker Bonds Necessary?

The Federal Motor Carrier Safety Administration requires brokers to secure operating authority licenses and to renew them annually to continue operating within the US. One of the requirements for securing and renewing an operating authority license is to secure and maintain a surety bond for freight brokers.

The governmental requirement for brokers to be bonded is meant to protect the companies that depend on them. This is why surety bonds for freight brokers protect the parties with which the brokers contract instead of the brokers themselves. If you do not secure and maintain a BMC-84 freight broker bond, you will not be able to operate your freight brokerage since you will not be able to secure or renew your operating authority.

Which Parties Are Involved in a Freight Broker Surety Bond?

The three parties that are involved in a freight broker bond include the following:

• Principal – The freight broker seeking the bond to secure or maintain its operating authority license

• Obligee – The governmental agency requiring the bond, which is the FMCSA

• Surety – The surety company issuing the surety bond

How a Freight Broker Bond Works

A freight broker must find a surety company to issue a bond so that the broker can secure an operating authority license from the FMCSA. The surety company will go through an underwriting process before agreeing to issue the bond. It will review the broker’s credit and financial history, ensure that the broker has sufficient working capital to cover the maximum bond amount and check its history for past problems.

The bond functions similarly to a person’s credit score. If a broker has a history of multiple claims or past unpaid claims, the surety company might deny the application for the BMC-84 bond. If it does agree to move forward with issuing the bond, the freight broker bond cost will be much higher than if the company had instead established a good operating record.

The principal must pay a percentage of the maximum bond amount upfront to secure the bond. This cost might range from 1% of the total bonded amount for freight brokers with good credit and reputations to 15% for those with poor credit or with marks on their records.

Freight broker bonds expire, but they can be renewed. Since a freight broker must also renew its operating authority annually with the FMCSA, it must maintain its surety bond and renew it if it is getting ready to expire. A surety company can also terminate a bond when the principal has unpaid claims and refuse to renew it.

While freight broker bonds are not insurance and do not protect your business, they are a necessary part of operating a freight brokerage in the US. You cannot secure or renew your operating authority to broker freight between shippers and carriers within the US without having a valid freight broker surety bond.

Since your history with your bond could potentially harm your business reputation and your ability to continue operating, it is critical for your company to establish a good record and to meet its obligations if any claims are filed against your surety. Establishing a good history by complying with the law and meeting your contractual obligations can help your business to be more successful.

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Archives, Global Logistics, Global Trade Daily, Trucking

Moving Forward: The Critical Need to Support Truck Drivers

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“Disruption” may have been 2020’s word of the year. Both the coronavirus and the economy impacted lives, leaving no industry untouched. When the nation’s GDP hit bottom in Q2 2020, it essentially wiped out any economic gains generated over the previous five years.

While the trucking industry was affected by logistics and supply chain issues and personnel shortages last year, many analysts have predicted a strong recovery. Since mid-year last year, freight demand has continued to regain its momentum. Trucking companies still face several challenges, however, the greatest of which is its long-standing struggle to recruit, train, and retain enough professional drivers to meet demand.

The economy’s recovering — but driver shortages remain

According to the latest ATA survey on driver turnover, rates:

-Fell to 87% in Q1 2021 from 90% in 2020 at large for-hire truckload carriers ($30M+ annual revenue).

-Increased from 69% to 72% at small truckload carriers.

-Increased to 18% from 13% in the less-than-truckload (LTL) sector.

American Transportation Association (ATA) chief economist Bob Costello said, “While the driver shortage temporarily eased slightly in 2020 during the depths of the pandemic, continued tightness in the driver market remains an operational challenge for motor carriers and they should expect it to continue through 2021 and beyond.”

Even though the market is in an upturn, ATA’s most recent survey found carriers reluctant to grow their fleets. Fleet sizes have decreased 6% for large carriers, 4.9% for small carriers, and 0.9% for LTL.

In the American Transportation Research Institute (ATRI)’s Critical Issues in the Trucking Industry 2020 report, respondents recommended several strategies to help strengthen the trucking and fleet sector. One strategy includes repealing or reforming ineffective, burdensome regulations negatively impacting the trucking industry. For example, most in the industry have favored adaptations of the Hours-of-Service (HOS) rule.

In 2020, the top HOS strategist advocated for additional flexibility in the sleeper berth provision, allowing a 7-3 split of hours. The U.S. Department of Transportation (DOT) has continued exploring whether to modify HOS rules for highly automated trucks, while the Federal Motor Carrier Safety Administration (FMCSA) is conducting research to “increase understanding of the human factors and address specific areas such as driver readiness.”

DRIVE-Safe Act

This bipartisan legislation could help to address the looming driver deficit, which is projected to reach 160,000 or more by 2028. Continued growth in freight demand combined with anticipated retirements could result in the industry needing to hire 1.1 million drivers over the next 10 years — or almost 110,000 drivers each year.

The DRIVE-Safe Act introduces a rigorous two-step apprenticeship program. It would allow younger drivers (between ages 18 and 20) to apply and train to drive trucks. Candidates complete at least 400 additional training hours, and an experienced driver would accompany apprentices on the road. These drivers-in-training would be required to drive trucks equipped with the latest transportation management software and safety technology like:

-Active braking collision mitigation systems.

-Forward-facing event recording cameras.

-Speed limiters set at 65 MPH or less.

-Automatic or automatic manual transmissions.

Meeting demand

The trucking industry continues working to meet demand. 2020 saw a 36% increase from 2019 in the number of entities (almost 58,000) to which FMCSA granted carrier authority. But the pandemic has lengthened the time needed to train and license new drivers. An additional 54,000 drivers became ineligible once the new FMCSA Drug and Alcohol Clearinghouse launched last year.

One solution to attracting and retaining more drivers includes increasing pay, which has increased dramatically recently. Fleets of all sizes now offer rolling pay increases and even signing bonuses of $10,000 or more. Ironically, pay increases may be contributing to the driver shortage, because some drivers earning more have chosen to drive fewer hours.

While long-haul trucking jobs have high turnover rates — a metric many point to as the reason for the driver shortage — this trend wasn’t caused by high employee dissatisfaction but rather the drivers themselves bouncing between companies.

Attracting (and keeping) drivers

Trucking companies and fleets have turned to a variety of strategies to combat the driver shortage, including increased pay and sign-on bonuses. But it isn’t just higher salaries. Drivers want more control over their workdays and environments. One tactic to help drivers achieve the balance they desire? Workflow software and route optimization.

Technology adoption has driven efficiency gains within the trucking industry as more trucking companies have embraced digital transformation. It isn’t just shifting office staff from in-person to remote work or using video conferencing to communicate. Fleets use data analytics to improve utilization. Contactless payment systems and electronic bills of lading have reduced touchpoints and friction.

Trucking software helps fleets more efficiently track drivers, manage dispatch records, monitor interstate fuel tax agreement (IFTA) reports, optimize driver routes, pay invoices, save fuel costs, track vehicle maintenance records and more.

Fleet management platforms also help drivers work smarter, not harder. The cloud-based software and accessible data allow fleet managers to analyze information for insights to optimize driver workflow. Mobile ELD and workflow solutions empower drivers to more effectively manage work processes and routes, setting them up for success by taking the guesswork out of compliance and reducing frustration, uncertainty and inaccuracy.

Truck drivers are essential workers and critical for sustaining a functioning economy. The pandemic highlighted not just their importance, but the importance of the transportation and supply chain industries, too. As the pandemic ebbs, the world rebalances and the economy continues its recovery, fleets and trucking companies will continue to make their deliveries and transport goods from coast to coast.

Implementing the tools of digital transformation — like driver workflows and other fleet management software — will prove to be another useful tactic for attracting and retaining drivers, ensuring their safety, and empowering drivers to simplify their daily workload and operate more productively, while still achieving high-performance standards.

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Avi Geller is the founder and CEO of Maven Machines. Since 2014, Avi has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but started Maven in Pittsburgh, Pennsylvania due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi also has an engineering degree from MIT and an MBA from Northwestern University.

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3pls, Archives, Global Logistics, Global Trade Daily

Sales Digitalization Trends in the Logistics Industry

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The logistics industry across the globe is entering a new era. The accelerated development of digital technologies, combined with recent pandemic events, is the main catalysts for this change. With an increased demand for mobility and remoteness, digitalization is affecting all transportation segments, including sales processes that were firmly rooted in traditional procedures. As a result, companies worldwide are following sales digitalization trends in the logistics industry. They gather, process, and organize large volumes of information and work on making them easy to understand and use.

Current and future sales digitalization trends in logistics

This emergence of digitalization across various fields is bringing a lot of new players to the market. Once primarily dominated by large businesses, the transportation industry is experiencing a large influx of smaller distribution companies. The rise of modern, dynamic, remote-focused, and customer-oriented companies is now creating high competitiveness, which calls for a range of changes, from marketing to sales procedures, for many. The sales funnels need to go through a complete transformation to improve business operations.

What changes in technologies will have a breakthrough impact on the business now and in the next few years? Here are several sales digitalization trends every logistics company should be aware of:

-Online sales and automated pricings

-Shifting the focus to customer journey

-Automatization of procedures (AI)

-Customer acquisition changes

-Blockchain efficiency

Online sales and automated pricings

More than half of logistics companies are establishing online sales processes. However, not all the steps are touched equally. One example is the ability to provide online quoting and price estimates. Previously, they served more as an approximate estimate based on a specific set of static rules. Followed later by calls or contacts in person for negotiations. But, the ongoing digital sales revolution calls for a more dynamic solution. In general, by considering the type of goods, average delivery time, prioritization of shipments, and overall costs, the sales departments need solutions to provide instant and more precise results.

One way to solve this problem is to use dynamic automated pricing engines. They will collect real-time data by analyzing and combining different resources. Only then will you be able to successfully forecast and derive instant and precise rates. More likely, something similar to the software solutions airline companies are using today.

Shifting the focus to customer journey

The future of sales lies in their ability to focus on the customer journey. So far, it’s been proven multiple times that relationships with customers are what drive the best results. In essence, this requires specific tools like Customer Relationship Management (CRM) software solutions, which will allow you to better manage current and potential customers and communication with them. You will be able to gather behavioral and other data to help you increase sales through better customer service. In addition, CRM allows you to track and trace a variety of data – everything necessary to identify patterns so you can predict customer preferences. And prevent potential issues in the supply chains. There are also IoT tracking and tracing tools logistic companies can use to monitor shipments on both ends. Allowing such transparency will increase your company’s credibility, improve procedures, and make the transportation process more profitable.

Automatization of the procedures (AI)

Dealing with new technologies on a larger scale is never easy. Many companies experience difficulties when they need to adjust new salespeople to the changes. Fortunately, the training process can be much easier with the help of digital solutions. With Artificial Intelligence (AI) available today, we can automate many previously manual procedures, making the entire training and working system more efficient and less time-consuming. Rather than investing a lot of resources into slow mentor-like coaching, sales can use the capabilities of automation through upgrading their infrastructure and technology.

Another aspect of why AI is much better to focus on lies in these systems’ additional functionality. Features like tracking finances, anomalies, delays, and better delivery planning and predicting will reduce the overall logistical risks.

Customer acquisition changes

Like for many other industries, the logistics salesforce has to follow new arising trends in customer acquisition. This is the use of social media and other alternate networks. You can increase your business operations and provide better customer relations by using these digital platforms for engagement. Previously, social media channels were the mere focus of marketing teams. However, the need and goals of marketing and sales have to align and combine perfectly to give sales a chance to improve their operations. Whether we like it or not, this shift to social network communications is establishing itself as more than just a place of entertainment for customers. Active publishing means more quality leads for your sales in the future.

Blockchain efficiency

In addition, blockchain technology solutions can make your logistics process more effective. And improve your brand image as a whole. By allowing your customers to follow the delivery, you will increase the transparency and credibility of your services. It’s time effective and creates a better customer experience. Everything you will need to acquire more loyal customers.

Adopting all the digital solutions in your sales process doesn’t come without challenges, especially for older, larger, and more established logistics companies. When everything is firmly rooted in traditional approaches, transforming the entire business model is complex. Fortunately, scaling everything across your salesforce is everything but impossible. If you follow the best sales digitalization trends in the logistics industry, you can easily remain competitive in this new industrial revolution that is shaking the transportation world.

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Dave Atkinson is currently working with the Best Movers in Florida on providing helpful information and guidelines for researching, improving, and planning the moving business. His writings can be used by both transportation companies and their customers to better understand advanced technologies in logistics processes.

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3pls, Archives, Global Logistics, Global Trade Daily

FORWARD-THINKING FORWARDERS: HOW TO MANAGE CUSTOMERS’ CHANGING NEEDS ALONG A CHANGING SUPPLY CHAIN

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For the modern-day 3PL provider, managing expectations while successfully retaining customers goes well beyond cost savings and providing the fastest alternative to moving products. It did not take the pandemic to realize the consumer market continues to shift significantly, creating spikes at every angle from transport costs, sourcing, space, resource flexibility… and the list goes on.

The meaning of “competitive” is now determined by a 3PL provider’s agility and predictability in tandem with optimizing the flow of goods throughout the supply chain. The big kicker in the current market is that as costs continue to go up, the available labor pool becomes smaller. So, then, how can 3PL providers keep up with the competition while retaining their customer base and adding value? It starts with how you manage customer relationships. Many times, the biggest competition is not the opposing team;  it is keeping up with the hit-and-miss market. 

Andy Frommenwiler, vice president of Air Freight USA at Dachser, has compiled a list of the top three shifts his company’s customers are considering or implementing:

1. Alternative solutions to source their product. To that end, local sourcing has become more competitive and paired with unpredictable rising costs of transportation.

2. Customers are moving toward longer-term forecasting to allow for disruption and the lack of supply chain fluidity.

3. Taking advantage of space availability for customers with smaller orders.

“Market disruptions will continue, and it is imperative to properly plan now because it is clear there will be ongoing capacity challenges and other forms of disruption throughout the year,” Frommenwiler cautions.

In addition to piecing together the puzzle of transporting goods without breaking the bank and tarnishing the reputation, 3PL providers are laser-focused on retaining their customer bases. While the market is scrambling, customer retention is a critical element to remaining resilient and maintaining a competitive edge. The key here is not so much about what you can offer customers, but more so how you can extend stability and transparency. 

“In today’s environment, it is crucial to maintain an initiative-taking approach and open dialogue with your customer,” advises Frommenwiler. “Informing customers of the current market situation, such as unstable pricing and space shortages, makes the customer aware of today’s challenges, which not only allows them to properly prepare but also highlights the importance of a strong, knowledgeable logistics partner.”

Always remember that the disruptions you are experiencing as a 3PL provider are almost always parallel to the challenges your customers are struggling to navigate. The value is how the 3PL provider not only provides support in solving these challenges, but also how much visibility is gained through the partnership. 

“Very high demand with low supply, port congestion, trucker shortages, mounting detention and demurrage charges are just some examples of the challenges companies are faced with today,” Frommenwiler notes. “As the planning experts, it is our responsibility to not only identify the challenges, but also to provide alternative solutions such as LCL expedited service, standard LCL or air freight options. 

“It is also critical that we insist on customer forecasts to facilitate better planning, booking, space allocation and superior utilization. It is important to gain trust and ensure the customer understands that, as their appointed forwarders, we are their partners and are not capitalizing on the situation by taking advantage and over-charging for our services.”

Another significant challenge in the current market is the labor shortage. Look at any industry, and you will find the need for workers. The same is true for players in the logistics arena–from 3PLs to customers, all are hurting from the labor shortage. 

“The current labor shortage situation is particularly challenging and difficult to manage,” Frommenwiler concedes. “Ground handling companies, which are managing several airlines, are simply overwhelmed with the amount of cargo and limited warehouse space. Consequently, it takes days to break down cargo. These delays contribute to further disruptions throughout the supply chain.”

The role of a logistics provider is to understand these disruptions while providing solutions that benefit the customer. Demand will continue to increase, that is not changing. When you take on the challenges of the customer as a logistics provider, you create the opportunity to understand what your competitors are faced with. The more solutions you provide to your customer base, the more trust, reliability and increases to your bottom line you create. When you invest in your customer, you invest in your company. 

“It is important for companies to start making proper investments now to position themselves for a successful future,” Frommenwiler says.

Dachser USA takes these investments to the next level when considering the needs of its customer base. In July 2020, the global logistics leader announced its new dedicated weekly Frankfurt-Chicago-Frankfurt flight service, connecting U.S. customers to the European market through a comprehensive land transport network from Frankfurt with rotations each weekend. The pandemic inevitably took its toll on the flow of the supply chain and in true Dachser style, the provider stepped up to the challenge, paving the way for advancements in innovation and expansion. 

“This new dedicated weekly transatlantic flight service offers a solution to the current air freight capacity challenges that our customers are facing,” Frommenwiler says. “They called upon us to provide a timely, efficient transportation option to move their cargo between the U.S. and Europe in a way that allows them to properly plan and meet their deadlines.” 

Market disruptions do not have to be the end of your brand–in fact, they can be the very thing that sets your services portfolio apart from the competition. At the end of the day, customers will select the logistics provider that can get the job done, maximize the bottom line and add value to the partnership. If your customer suffers, your company suffers. Offering the latest technology means nothing without measurable results, scalability and increased visibility. When thinking about how your company can best meet the needs of customers in a volatile market, start with the basics: clear communication. 

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Andy Frommenwiler is vice president, Air Freight USA, at Dachser.