California’s Assembly Bill No. 5 – better known as AB 5 – originally prompted to provide protections for gig employees faced challenges immediately after its passing in 2020. Following a lengthy court challenge and appeal that was struck down, it is now widely interpreted to also apply to California’s independent owner-operator drivers. With its hasty implementation, there are no certainties for the long-term impact that AB 5 carries for the trucking industry.  

The world of trucking transportation is an $830 billion industry. AB 5 has implications that can affect an estimated 70,000 independent owner-operators based in California. Nothing will happen overnight, and much is still set to play out in the courts, but we’re starting to get a clearer picture of what we’ll be seeing first and where we’ll see the industry moving. 

What Does AB 5 Do?

As it was originally envisioned, AB 5 was directed at carving out protections for gig workers, specifically those working for companies like Uber, Lyft, Postmates and Instacart. As worker rights and conditions have come into greater focus, it’s clear that these workers who often picked up driving and delivery services for supplementary income may have faced dangerous work conditions, undisclosed fees, less than minimum wage, and no avenue for recourse. 

The intent of AB 5 was to build protections for these workers by reclassifying them as employees and not as independent contractors. These protections included things like minimum wage, worker’s compensation, overtime pay, and unemployment insurance. Most agreed that the issue involved the practices of these gig-economy companies while also extending to janitors and domestic workers who are historically underrepresented and taken advantage of, and not the independent contractor model of running one’s own business. 

Short-Term Implications of AB 5  

While there’s no way to guess how the implementation of AB 5 will play out over the next few years, we are already seeing short term impacts that are adding complications to an already overly extended industry. Coming after three years where the trucking industry and supply chain channels saw major upheaval, this bill is set to only add challenges. 

After the Supreme Court denied hearing challenges to the bill, major transportation industries scrambled to figure out updated practices in compliance with AB 5 while still maintaining arrangements with owner-operators. Most of these decrees have indicated that owner-operators could relocate out of California, not haul in California, or join an operating authority as an employee and continue to haul in California. Each of these options carries major life upheaval for owner-operators who were simply following an entrepreneurial path. 

In the works now is the idea of a “two-check system.” As John D. Schulz explains in his piece for Logistics Management, a few California-based trucking companies are considering a new system to pay formerly independent contractors. Under this practice, truckers would now be hired as employees, but then issued a check to lease their equipment back to the company. This hasn’t been put in place yet, but it speaks to the magnitude of creativity the industry is using to try to protect its owner operators, so an overtaxed supply chain system isn’t dealt another huge blow. 

Earthquakes in the Trucking Industry 

The trucking industry has been facing a driver shortage for years now with projections that it will only get worse before it gets better. The workforce is largely over the age of 60 and headed toward retirement with not nearly enough young and qualified drivers entering the field. The industry itself has implemented changes to attract more and younger drivers, but these efforts are being hindered by expanding regulations. 

Trucking is an absolutely essential mode of transporting goods around the country, and because of that, there is an undeniable environmental impact. But the industry on a whole has proven to be in line with becoming greener and more sustainable, working with lawmakers towards reasonable and impactful updates to equipment and operations. 

AB 5 and the Trucking Industry

The primary intent for AB 5 was not to affect traditional companies that have a long-standing tradition and working model for using independent contractors. And when looking at the history of working together, California governmental agencies and the legislature have most often worked closely with trucking and trucker organizations to draft legislation that creates progress in the industry while also being attainable and non-disruptive to the national supply chain. 

That hasn’t happened with AB 5, and while trucking companies who contract with owner-operators are busy ironing out new methods to continue working together, it’s the owner-operators themselves who are facing uncertainty, heavy new costs, and possible major life changes. It seems in some sense that the state of California has drawn a line in the sand about the independent contractor model of doing business and designating that certain industries who employ this model are fine to do so, but others must reorganize. 

We will not know what this looks like in the long term for quite some time and it’s almost guaranteed that there will continue to be court challenges that will reshape how AB 5 is implemented. What is clear right now is that solutions are ongoing and relief from higher shipping costs will be pushed back. In the end, AB 5 will for now produce reduced capacity and shipping choices, ultimately affecting shippers with higher rates and consumers with higher prices. 

As an independent Landstar agent, Pride Logistics is backed by one of the largest capacity carrier networks in the country. We’re dedicated to remaining at the forefront of responding to the impacts of AB 5 so that our operations for customers are unaffected. As owner and CEO Jose Sherman notes, “we knew this was a possibility and have been making adjustments according to AB 5 requirements. Because of this we’re expecting no interruption of services, and little to no impact on our capacity availability.” If you have questions about how to keep this legislation from impacting your supply chain, we’re here to help provide solutions. 

The Covid-19 pandemic brought the national global supply chain front and center in everyone’s lives and it hasn’t left since. Major shifts in buyer behavior, the readiness and availability of goods, as well as rapidly changing product demands created a vastly different picture than was present even a few years ago. 

Now, the transportation industry is facing a crisis of circumstances from within – a shortage of truck drivers. We’re already seeing this shortage impact the piling up and movement of goods, but is there anything to be done?

Truck Drivers in the U.S.

Around 71% of products in the U.S. economy are moved across the country by truck drivers. The shortage we’re now facing has been developing for a long time. Since the early 1990s, population growth and expansion of cities and towns has meant a steady rise in the number of goods transported across the country. However, as the number of goods has risen, the number of drivers to move those goods has stayed roughly the same.

Truckers can make up to around $100,000 per year, but it can often be a grueling way to make a living. Drivers are on the road for most of their life, meaning that family and friends may not be seen for months at a time. Holidays and special occasions are often missed. They may also be responsible for the cost of gas, carrying insurance, and conducting maintenance on their rigs.

Drivers By the Numbers

The majority of truck drivers are of the baby boomer era, born in the two decades following World War II. Currently, 31% of drivers are aged 55 or older – over one-third of that entire workforce. Much of that generation has already reached retirement age, or will be reaching retirement age in the coming years. As greater numbers retire, the number of younger individuals joining the ranks of truck drivers has not met the requirements to replace the number leaving.

As it stands in 2022, an estimated 80,000 more drivers are necessary to meet the needs of the industry right now. That number could stay constant or get worse in the coming few years, and is expected to surpass 160,000 by the year 2030. It’s a perfect storm situation of higher than usual freight volume that is not expected to subside, large amounts of retirements, and lack of new drivers to fulfill open roles.

Additional Challenges

The industry on a whole has been pursuing a range of solutions to this problem. Raising pay was the primary method enacted by carriers. Estimates put the rate increase at up to five times the historical average, with average weekly earnings for long-haul drivers up more than 25% since 2019. Unfortunately, this hasn’t yet had the desired effect of attracting new entries to the profession and instead has created more competition between carriers for the limited pool of current drivers.

Driver retention and new driver acquisition also rely heavily on quality of life factors that are even harder to address for the profession. Life on the road can be physically and mentally grueling. On top of that, to meet safety standards within the industry, it’s an expensive and time-consuming process to teach someone how to drive an 18-wheeler through inclement weather and treacherous snow and ice.

Working on Solutions

Turning to technology is one way that the industry is attempting to ease the situation. Since truck driving carries some safety risks, many in the industry want to incorporate emerging technology to make truck drivers’ lives safer and easier. Driver-assist technologies like collision mitigation and auto-emergency braking have a lot of support within the industry that will have a positive effect if implemented.

Self-driving trucks have been in discussion for quite some time with some versions being actively tested. In 2017, the now defunct company Otto spearheaded the self-driving big rig with a 132-mile drive across Colorado to deliver beer. Many companies are looking at a possible hybrid model where self-driving trucks are used for a majority of the haul with human truck drivers taking on sections that would benefit from more on-site thinking.

While technology can help alleviate some of the need for new drivers, it’s likely only going to be able to lower that number, not entirely get rid of it. To combat that, attracting young drivers from a variety of diverse backgrounds is at the forefront of the industry’s priorities. Many see that as starting at what current drivers have been asking to have for years. This includes bonus opportunities depending on the trip, better benefits and healthcare, more physical comfort on the road, and making it easier to get a CDL (the licensing required to operate large trucks).

Takeaway

Lowering hurdles and making the profession more appealing and rewarding could go a long way in attracting new drivers to the industry. Reaching out to audiences that are traditionally overlooked could also be beneficial. And while technology can be revolutionary, it’s unlikely to ever completely change the model. No matter where we go, or with what combination of features, supply and demand dictates that there will absolutely be change that we’ll need to adapt to for the future of truck drivers.

Shortly after the historical flight by the Wright Brothers at Kitty Hawk in 1903, those who believed in aviation began searching for other lucrative uses for the airplane besides moving people. These were the seeds of air cargo – an industry that today moves millions of packages around the world daily. With its illustrious beginning, air travel was bound to revolutionize multiple industries. But the Covid pandemic has taken a toll, and it remains to be seen how air cargo freight in the U.S. will manage these challenges. Despite this, let’s see how the industry has been so successful and where it’s headed in the future.

Technology & Speed

The first practical demonstration of air cargo freight took place in 1910, a mere seven years after the first flight. Philip Parmelee flew 65 miles from Dayton to Columbus, Ohio, delivering a package containing 200 pounds of silk for the grand opening of a retail store. The flight was officially timed at 57 minutes – a world speed record at the time and the very first ‘cargo only’ flight. It was also the first example of multimodal air transport, since the silk was transported from the plane to the store by an automobile.

This success was sidelined by the First World War beginning in 1914. Aerial warfare played a massive role in this war and changed the face of modern warfare forever. This was also a time when a number of entrepreneurs understood that aircraft could move high value/low volume consignments faster than railroads, shipping companies and parcel delivery companies.        

Efficiency

When other modes of transporting goods presented new challenges for shippers in 2020-2021, and with ongoing, pandemic-driven supply chain disruption impacting transportation networks, companies turned more and more to air freight for help moving their cargo quickly and efficiently. 

Air cargo freight also has the unique position of being able to capitalize on not only dedicated cargo planes, but also belly-hold capacity on passenger aircraft. This opens up the flexibility and various types of air transportation, thus expanding capacity. Routes between cities also provide the ability to search for availability that could satisfy efficiency, cost savings, or time savings depending on the priority needs of the shipper.

E-Commerce

The rise of e-commerce has had the greatest impact on the air freight industry. Companies like Target, Walmart, Amazon and eBay allow customers a few shipping options when they shop. Some of the most popular are two-day and next-day delivery. This movement of goods from one country to another, around the world, and ultimately to the buyer, with such speed usually requires the use of air freight.

The introduction of the Boeing 747 transformed the air cargo industry by allowing full pallets to be transported within the cargo hold of the wide-body aircraft. What followed was the launch of dedicated service providers for all-cargo airplane fleets. This contributed greatly to the increased volume of air freight and continues to move the industry toward fulfilling larger and larger volume of shipments.

Freight Volume

With freight volume expected to grow 50% by the year 2050, there is going to be an incredible amount of freight that will require infrastructure and supply chain to support it. As freight volume increases, freighters in airplane fleets will increase in numbers by necessity. Passenger airplanes simply cannot meet the needs of the world air cargo industry. Most passenger belly capacity doesn’t serve key cargo trade routes nor meet shipper timing needs. They’re also limited in the type of cargo, not being able to service palletized freight or hazmat.

And with the increased number of freighters needed, there is a compulsory increase in needs for pilots as well. The commercial airline industry has been facing a pilot shortage for years, and with a global freighter fleet expected to grow more than 60% over the next two decades, pilots are going to be in even heavier demand.

Critical Services

Despite the challenges posed by the pandemic that directly affected the supply chain, air cargo freight continued to play a crucial role with critical services. Life-saving medical equipment and PPE was rapidly transported exactly where it was needed, sometimes in mere hours or up to a day or two. 

As the coronavirus vaccines were developed, air freight played an invaluable role in transporting the equipment needed to deliver vaccines from the vaccine itself to glass vials, needles, and syringes to administer the shots. While it was often trucks and vans performing the last mile delivery, these materials that saved countless lives only made it where they were needed with the aid of air freight cargo.

Takeaway

A globalized economy makes air freight an essential component in any sort of movement of goods around the world. As air freight is expected to play a larger role in the transportation industry in the coming years, focusing on labor shortages and regulatory disputes – especially internationally – is going to play a major role in how smoothly the air freight industry grows and adapts to its ever widening role. 

The U.S. Railroad dates back to the year 1830 and has been a mainstay to move people and things around the country ever since then. It has played a central role in the country’s history and economy, and today, the U.S. has some of the most profitable railroad businesses in the world with upwards of billions in profits. So what makes the U.S. freight railroad system so successful and where is it headed in the future?

Geography

The geography of the United States is largely responsible for freight railroad and the freight network being far superior than that in other countries. Railroads traditionally depended on both agriculture and mining. These materials typically originate in the center of the country and need to move outward to the coasts where population is heavier. 

This disbursement of population coupled with the natural geography of where these commodities are found and grown, made railroad a natural solution to move them about the country. Especially during longer hauls throughout central America. The flat land of central America and the plains region also created an ideal situation for laying track, with population centers booming as the railroad was built.        

Rise of E-Commerce

The rise of e-commerce has made intermodal containers some of the biggest shipments for railroad freight. Intermodal containers can move seamlessly from a ship that has crossed an ocean, to a train to move through vast amounts of land, to a truck for more pointed last mile transport – all without ever having to be unpacked.

One intermodal freight train carries upwards of 200 containers. That’s 200 trucks worth of goods moved by one train. It is highly efficient and environmentally friendly, producing about 25% of the amount of carbon emissions that trucks do. With e-commerce only expected to expand on its dominance, freight rail and intermodal shipments are likely to become more popular and useful for supply chains.

Freight Volume

Freight volume is expected to grow 50% within thirty years by the year 2050. That’s an incredible amount of freight that will need the infrastructure and supply chain to support it. A typical railroad freight may travel on average 1,100 to 1,800 miles in the western U.S. and 400 to 600 miles in the eastern U.S.

Intermodal units represent approximately half of railroad unit volume. This has replaced coal, which was the king of rail freight volume for a very long time. Moving along the freight railway system are essential industrial products, chemicals for medicine and food packaging, disinfectants for treating water, animal feed, crop fertilizer, energy supplies, and critical household items.

Technology

In recent years, rail freight has taken a more aggressive approach to deploying artificial intelligence-based technologies that boost safety, performance, and productivity. With methods like drones inspecting bridges and sonar checking track that spans the country, technology is leading freight railroads into the future.

Today, a single train has a network of people and technology constantly monitoring its status and performance. When combined with data analysis, these tools provide an additional layer of oversight and allow human operators to identify issues before they arise.

Efficiency

The best thing that railroads have going for them is their inherent efficiency. And that’s across land usage, energy consumption, or cost of moving goods. Where they lack is convenience. Trucks have always cornered the market on convenience. 

Railroads also cannot be as flexible or responsive to sudden changes like trucks and planes. It is a complicated network, but focusing on improved transit times and consistent reliability are key to the long-term railroad industry viability.

Freight railroads have all the building blocks to take advantage of advancing technology and their inherent strengths. Demand in the U.S. is only going to continue to grow, so investment in these areas will be crucial for long-term success.

Earlier in November, President Biden signed into law the largest spending bill in U.S. history that is aimed at transportation infrastructure, including improvements to ports, bridges, and roadways. The bill earmarks the spending of $1.2 trillion over the course of 10 years to tackle these many issues and create more than 700,000 jobs, with more than 100,000 new jobs in the transportation industry alone. So what’s in it?

Spending Allocation

The $1.2 trillion bill includes new spending that represents the most significant investment in infrastructure in U.S. history. Some key features:

$110 billion to fix roads and bridges

$16 billion to improve ports and waterways

$49 billion to fund public transit initiatives

$66 billion to boost freight and passenger rail

$25 billion to improve airports

Aside from the specific amounts above, the bill also sets aside $1 billion per year for nationally significant freight and highway projects through the year 2026. This can include an array of projects, but significantly, any project that the DOT chooses for the grants will be addressing the impacts of population growth on freight and people movement.

Trucking Industry Impact

All this spending and potentially vast improvements spell good news for the trucking and freight industry to innovate and accelerate change. The industry employs more than 8 million Americans and more than 70% of the country’s freight is moved along the nation’s roads, with more than 3.5 million truck drivers transporting that freight through the country’s infrastructure every single day.

The bill also features initiatives to grow the trucking workforce with public service campaigns to increase awareness of the career paths in transportation. This could open huge opportunities to expand the amount of qualified drivers on the road and possibly attract younger drivers through an apprenticeship program.

Along with these, the bill focuses on improving emissions and safety initiatives through ongoing studies. The DOT is tasked with determining causes and contributing factors in various situations with an eye toward instituting changes to improve the industry in these regards.

In the end, this bill is a massive step forward to improving an entire sector of the country that has never seen an investment of this kind. In the years ahead, we will hopefully be seeing an incredibly positive ripple effect through the transportation industry as infrastructure improvements and innovation take center stage.

The majority of professional truck drivers get through their entire careers without ever being involved in major accidents despite truck driving being one of the riskiest jobs in the United States. Although drivers are skilled in transporting loads using specialized equipment, and are safety conscious, road design is out of a driver’s control. And when that’s combined with bad weather, the result can be some of the most dangerous U.S. highway stretches for truckers. These are the top five that truckers try to avoid whenever possible.

Highway 550 in Colorado (The Million Dollar Highway)

Back in the 1880s, the stretch of highway from Ouray to Silverton in Colorado cost one million dollars to build – that’s how it got its nickname ‘The Million Dollar Highway.’ Today, this 25-mile section is one of the most dangerous for truckers to travel.

Aside from its many twists and turns through mountains that ascend up to 11,000 feet, the lack of shoulders or guardrails and the steep drop of the cliff can make for a harrowing drive. Add to that the erratic weather this region of the country can experience – from frequent snow, ice, and high winds during several months of the year – and you have a recipe for a potentially experience.

Highway 2 in Montana

This 760-mile section of Highway 2 stretches from the Washington state line on the western edge of Montana to just east of Bainville. The highway runs through extremely rural areas situated far apart from each other.

Winter weather conditions can make the road particularly hazardous as the region is prone to high winds, blizzards, and black ice. Population is sparse, there isn’t much traffic, and people tend to drive fast, something that is quite scary considering that emergency response time for ambulances can average up to 80 minutes.

Dalton Highway in Alaska

Also known as Alaska Route 11, this 414 miles of road winds through mountainous terrain, has only one fuel stop, and very little access to emergency services. This is the main road for truckers to get from Fairbanks to the northern areas of the state.

Dalton Highway routes through the mountains of the Brooks Range, where America’s lowest temperature of 80 degrees below zero was recorded in 1971. Making the icy driving conditions worse, the highway was opened to tourists in 1994. Today, helicopters patrol the area looking for troubled motorists twice a day.

Interstate 10 in Arizona

Interstate 10 is America’s fourth-longest interstate highway and stretches from the west to the east coast of the country. Arizona’s portion of Interstate 10 totals just over 360 miles and consists of long stretches of flat, desolate desert.

This area of the highway features high traffic volume and a lack of median barriers, making it a visually crowded route for drivers. There’s only one fuel stop on the whole route, and the 150-mile span from Phoenix to the California border is among the nation’s most dangerous highways.

Interstate 95 in Connecticut

One of the nation’s oldest highways, Interstate 95 runs for more than 1,900 miles from Houlton, Maine to Miami. It’s the longest north-south interstate in the country.

It runs through numerous heavily populated cities, especially in the Northeast, and is responsible for many fatalities each year. The majority of accidents occur on an 8-mile stretch through the city of Norwalk, Connecticut. Tractor-trailer accidents are highly susceptible to the winter storms, springtime heavy rains, and random high winds.

Pandemic-era restrictions have been lightening and we’re getting a clearer picture of short-term and long-term impact. While long shipping wait times were universally experienced by companies worldwide and are continuing, consumer demand is picking up. In the current market, that means production and distribution costs are rising right along with that increased demand.

 

Since supply chains haven’t fully recovered from the events of 2020, there are some choices to make in order for companies to find ways to increase their efficiency and offset costs. So let’s discuss a couple proven ways to meet high demand, interrupted manufacturing, and strained shipping capacity without incurring higher freight costs.

 

Improve Supply Chain Efficiency

 

As more people purchased goods online during 2020, the demand for freight transportation soared in response. But freight capacity was seriously hindered leaving shippers to consider the costly options of internal shipping departments or the spot market. Demand for trucking increased over the summer and the start of 2021 saw some relief mixed with shipping container shortages and severe winter weather across the United States.

 

Instead of having to expand internal operations or increase prices to balance out higher shipping costs, taking the opportunity to strategize your whole supply chain has lasting benefits. One essential way to do this is to partner with a freight company that embraces innovations in transit technology and incorporates every way of streamlining operations.

 

Build Responsiveness Into Your Shipping

 

Working with a freight company built on a dynamic capacity model opens up entire fleets to your needs without the overhead. Access a network of professional drivers operating a variety of equipment ready to transport exactly what you need to move, when you need to move it. No getting stuck with only certain types of transportation that doesn’t suit your needs.

 

However, a dynamic model only works if you’re partnered with an operation that has an expansive carrier network, expertise, and intuitive knowledge of the freight industry. At Pride Logistics, we’re proud to offer the largest carrier network and the knowledge and creativity to solve even the most challenging freight shipment needs.

 

With a return to normalcy on the horizon, we know that a new normal has set in for the freight industry that promises the need for continued creativity and thinking outside the box for solutions. At Pride Logistics, that’s our every day.

From major trucking companies to small independent shippers, operators in the freight industry are taking steps to reduce their emissions. The transportation industry as a whole accounts for 28% of emissions in the United States, with trucks making up 23% of that.

But the global automotive industry has been shifting towards eco-friendly solutions for years, and that movement is finding its way to trucking. The industry has made tremendous strides at lowering its environmental impact and is not slowing down. Let’s take a look at what we’ve seen accomplished so far.

Optimized Route Planning

A greater emphasis on hyper-efficient route planning has been a resounding trend in the transportation and logistics industry. By not planning routes, each shipment can lead to higher fuel consumption in several ways. But it’s not just about planning to take the shortest route.

Events like traffic and adverse weather can slow down any truck. Drivers stuck in traffic or forced to drive in lower gears because of rain or snow will use more fuel. Artificial intelligence (AI) systems are now utilized to predict weather and traffic to avoid these situations.

And since the route that was the best one time won’t necessarily be the best route the next time, these AI systems continually learn and gather data. They indicate best routes using sophisticated pattern tracking technology.

Reducing Empty Miles

The latest statistics indicate that empty miles accounted for about 17% of greenhouse gas emissions in the U.S. By ensuring that truckloads are full and minimizing empty miles, greenhouse gas emissions can be reduced in one of the simplest ways.

Since full truckloads (FTL) are also the most cost-effective for customers, it’s a win-win scenario to also be able to dramatically help the environment. This is where there’s great benefit to working with a trusted carrier service to reap these benefits.

Eco-Friendly Fuel

Many businesses are trying to move away from fossil fuel powered vehicles altogether or at least find ways to hybridize trucks. Since most trucks use diesel gasoline to power their trucks, opting for biodiesel has helped companies reduce their environmental impact.

The next step that has developed over the past few years involves a shift toward electric vehicles. With the use of batteries, hydrogen fuel cells, and renewable natural gas, alternative fuel vehicle technology is becoming more accessible to the freight industry.

Improved Aerodynamics

While changing how the trucks operate is important, changing the actual trucks themselves also plays a role in a more environmentally-friendly future in trucking. Putting greater emphasis on the aerodynamics of a truck means it will experience less drag and thereby be more efficient.

Traditionally, the typical freight truck is not very aerodynamic. Studies have shown that there’s an aerodynamic loss in key design areas. Manufacturers have seen a lot of success with redesigned tractors, shorter gaps between truck and trailer, and improved bumper shapes that have all positively impacted aerodynamics. 

All of these changes, while great for the environment, they’re also showing a positive impact on the industry itself. By implementing changes like these, the carbon footprint of trucking is reduced, and improved delivery times result from the added efficiency. As we look ahead, there should only be more ways that the transportation industry can take a leading role in creating  a more sustainable future.

The freight industry can seem quite complex on the surface, especially to first time shippers or those who deal mainly with one type of shipment. Even experienced professionals can find themselves scratching their heads from time to time.  

No matter if you’re a seasoned pro or a novice, you’re bound to have questions. So, let’s help you better understand the intricacies of the shipping process with answers to 8 of the most common freight shipping questions. 

Q: What can be shipped with freight shipping and what are my options?

A: Any amount of freight can be shipped to its destination through a variety of services to handle it all. Common freight shipping options include truckload (TL), less than truckload (LTL), expedited LTL, air freight, time critical, and rail intermodal. If you have questions regarding which shipping option best fits your needs, take a look at our post Freight Shipping Basics: Know All Your Options.

Q: What’s the difference between LTL and TL?

A: These terms refer to a method of freight shipping. They are the most popular and utilized forms of freight shipping, so these terms will be the most commonly heard and known. So what’s the difference between the two?

Less than truckload shipping refers to shipments usually weighing less than 15,000 pounds and won’t fill an entire truck’s capacity. This type of shipment means you’ll be sharing the truck space with shipments from other shippers. Routes and deliveries are then optimized based on the origin and destination of the shipment. The main benefit of this option is typically a lower cost.

Truckload, also referred to as full truckload, is when a shipper uses the entire capacity of the truck for only their shipment. This is a good option when shipments are over 15,000 pounds and require a lot of space. The main benefits of this method are that the dedicated truck can take the most efficient and fastest route, limiting the amount of stops.

Q: How are freight shipping rates determined?

A: Freight shipping rates are typically dependent on a variety of factors. You can start by considering the type of freight being shipped, mode of transport, weight, distance and more. For example, for LTL shipments, rates are typically dependent on freight class. For TL shipments, amount per mile is the standard. Oversized flatbed rates are based on type of equipment, mileage, and total shipment weight.

Q: What are freight classes?

A: Many years ago, the freight classification system was created by the National Motor Freight Traffic Association (NMFTA) to provide a standardized freight pricing structure for all types of freight in the industry.

The resulting 18 classes range from 50-500 and each number in there serves as a common grouping for multiple types of goods and commodities. These classes standardize the price of shipping a certain type of material. 

Q: How are freight classes calculated?

A: The classification of your freight is determined by the weight, dimensions, density, ease of handling and storing, value and liability (probability of freight damage or theft). It’s important to know how freight is calculated because assigning the wrong code to a shipment could accrue hefty, unnecessary costs. 

Q: Can I estimate my freight dimensions and weight?

A: Short answer, no, freight dimensions and freight weight should never be estimated. It’s critical to measure dimensions to the nearest inch, especially for LTL shipping, as these carriers rely on exact dimensions to determine how much freight can fit on one truck. Incorrect or estimated measurements could result in a costly carrier adjustment or other extra fees. The same goes for weight since carriers use the weight to determine how much freight can fit onto an individual truck. 

Q: Is there a standard contract for freight shipping?

A: In the freight industry, a standard contract is known as a bill of lading. This legally-binding document serves as a receipt and a contract between the carrier and freight shipper. It provides all stated and agreed upon information about the date of shipment, number of pieces, freight class, weight, dimensions, route, pricing, and more. This document is critical to the freight shipping process and establishes expectations about the shipment.

Q: Can transit time of freight be guaranteed?

A: Freight shipping services are very reliable, and partnering with a trusted carrier will help avoid unexpected delays, shipments do not typically come with a guaranteed transit time. There is the option to add guaranteed delivery to certain types of shipments for an additional fee. However, you’ll want to be certain that delivery can be completed on the day and time you’ve selected to avoid additional fees of redelivering.

While these may be the most common questions we get related to the freight shipping industry, they’re certainly not the only questions. If you have more questions of your own, we’re happy to provide some answers. Simply reach out and we’ll clear up just what you need to know!

Just like it sounds, temperature controlled shipping is the transport of goods that are sensitive to climate conditions. These types of items require special handling and storage for the entire duration of transport so that stable temperatures are maintained at all times. 

When moving products that are sensitive to temperature, delivery timeframes and interruptions become critical to plan out perfectly. Pulling off more basic shipments can often have some difficulties to maneuver. So, when you add additional needs of temperature control protection, there are all new considerations that arise.

But as with all things shipping and logistics, building out a strong strategy beforehand means you can ship climate-affected items with ease. Let’s take a look at how to best plan for temperature controlled freight shipping so your supply chain is expertly protected from mishaps.

Step 1: Identify critical shipping needs.

To have set in place the most efficient and cost-effective logistics, you must first identify and prioritize critical shipping needs. Of all the items you may be shipping, not all are going to be created equal as far as their needs go. No two shipments will require the same temperature stability, speed, distance covered, permits, hub transfers, or security requirements. 

So, work to tailor your logistics approach to what these items are going to need. Isolate perishable items from those that are not as temperature-controlled shipping can have quite an impact on cost. You don’t want to be stuck in a scenario where you’re shipping non-perishable items with temperature control coverage that they don’t need.

The International Air Transport Association (IATA) defines a shipment as perishable if its contents will deteriorate over a period of time if exposed to severe environmental conditions like extreme temperatures or humidity. Examples include (but are not limited to): pharmaceuticals, food and beverages, plastics, and electrical components.

Step 2: Plan for less capacity freight. 

Trucks and vans equipped to move refrigerated freight will inherently have less capacity. This equipment has an extra layer of insulation in the walls that reduces the overall space inside. Keeping this in mind, you should adjust your packaging in relation to the smaller inside dimensions. 

As you’re packing and preparing your freight, you’ll want to be very clear about the temperature guidelines at all points throughout transit. Most carriers work within a temperature range, so being very clear about an acceptable range will help to avoid any confusion. 

At points along the shipment’s journey, standard practice would mean that your shipments will spend time in docks, especially for loading and unloading. Temperature-controlled docks help ensure that the integrity of the items is maintained until the truck is ready to move with the shipment or unload it for delivery. 

Step 3: Plan for a perfect packaging fit.

During transport, it’s unavoidable that your shipment could be exposed to harsh environments like extreme temperatures or humidity. This is where your packaging for the items will make all the difference. Insulating your packaging is the most highly recommended deterrent to unforeseen issues. The most commonly used insulation materials are expanded polystyrene (EPS) foam, rigid polyurethane foam and reflective materials like radiant barrier films.

For some cool temperature-sensitive items, gel coolants are ideal. It’s suggested to freeze coolants, products and the insulated container all as one unit (if possible) before packaging. 

Step 4: Partner with a trusted freight service provider.

The difference between successful temperature-controlled shipments and non-successful ones often comes down to the freight service provider you partner with on the shipment. Your business has the most options for equipment and cost when working with a provider who understands all the shipping solutions available for your particular circumstances. 

At Pride Logistics, we have decades of experience from building a wide array of relationships within a vast carrier network so we can meet the needs of even the most complicated temperature-controlled shipments. While there is a lot to know about the needs and options when handling temperature-controlled freight, with the proper tools, preparation, and partner provider, your shipment will never be off track.