When it comes to freight charges, there is plenty you should be aware of. In the freight industry, it isn't uncommon for a good broker to run into problems concerning freight charges. When there are (at a minimum) three parties, who are coordinating on picking and delivering freight all over hundreds (or even thousands) of miles. Yes, there is bound to be some form of confusion.
It is vital to point out that this does not mean you need to be worried about your freight charges. It should hardly trouble you. Having the appropriate freight education is the ideal way to avoid such issues. Working with a good freight broker also plays a huge role in this regard.
Be rest assured that if you decide to pay attention to every point discussed in this blog, you will have the ability to approach your residential freight shipping well equipped (having the knowledge required) to understand your freight charges easily. It will afford you the opportunity to avoid any discrepancies in your endeavors better.
Truckload Freight Charges are Different From LTL
The charges involved in LTL and full truckload shipping are much different. The same applies to the quoting process. The carrier selection, as well as the vetting process, is also very different. The insurance and tracking practices are much different. Regarding LTL vs. truckload, there are just a handful of rules (very few) that applies to the two. Of course, this can apply to freight charges.
The freight charges between LTL and truckload can vary wildly, it all depends on a range of factors. Although an excellent broker will always be a better negotiator when it comes to seeking better rates via LTL carriers. Freight routes and lanes shouldn't change much as days go by. Regarding truckload shipping quotes, charges can vary according to the capacity and markets. For example, a truckload quote received in July will be probably different from one received in December, or August.
Some parts of the country usually feel crunch during produce seasons every year. Holidays also always affect the full truckload freight charges. For each shipment, whether LTL or otherwise, it is different, so do not assume that freight rates will forever stay the same. They are bound to fluctuate from time to time.
All Freight Charge is Not Made Equal
Note that freight charges aren't universal. Some are sizable national carriers, who have coverage maps that usually stretch across the entire continent in America (including the United States, Puerto Rico, and Canada) and have thousands of drivers and trucks under their employ. Others, on the other hand, are smaller, and more regional carriers, that specialize mainly in geographical areas. These can also offer excellent freight rates and services for the areas they cover.
By using such a collection of carriers, most brokers can offer customers the best possible freight quotes available. Do not forget that each of these carriers has their freight tariffs and agreements on specific charges, just as they have their freight quotes. Occasionally, brokers can successfully negotiate flat-rate contracts known as Freight of All Kinds (FAKs) with particular carriers. However, for the most part, liftgate charges with certain carriers may be different from the liftgate charge of others.
Also, note that this type of arrangements won't apply to every kind of charge (including residential delivery, reweigh or re-class charges, volume quotes, and limited access shipping, to mention a few. Do not forget, that because a liftgate cost $50 on a previous shipment, does not mean it will be the same on your next.
Freight Charges Can Also Be Applied to Damaged Freight
Damaged freight remains one of the most stressful parts of the industry. Mainly because damaged shipment (of one form or another), isn't avoidable. If you are a frequent shipper, chances that you are going to have to handle damaged freight once (at the least) are on the high side. Before the day comes, it is crucial to understand that charges can still be applied to damaged freight.
The fact that your freight was damaged in transit does not mean you aren't responsible for freight charges. There is a range of damaged freight processes and instructions, along with different carriers having some ways of handling damaged freight. In all situations, you or your broker must file a claim for damaged shipment with the carrier. Each carrier has different coverages (including for freight that is damaged partially, fully damaged, or lost). Despite this, the original freight invoices must be paid for. They should be thought of as two separate transactions.
It is crucial to know the insurance coverages offered by any carrier you are using according to your item’s declared value or freight class before shipping. If you are moving expensive freight, it is recommended that you invest in third party insurance. This is because of it a streamlined process, that deals with carriers directly, and is more likely to settle compensation quickly for legitimate damage or loss). Look to your broker for more clarification on the issue.
It is safe to say everything regarding freight charges is a misnomer. Following our number of years analyzing the residential freight industry, we are convinced that no one can be sure of everything about freight. It is a full swing dynamic industry with different regulations and practices popping up yearly.
However, if you want to enjoy a fruitful freight shipping experience, focus on the details indicated above before you ship. Ensure you invest in great freight carriers and insurance for expensive items.
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TransAmerica Express Team