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Truck loading at dock.

If you’re a shipper, carrier or logistics company, it’s been impossible to ignore the news about the industry’s ELD mandate (Electronic Logging Device), which went into effect late last year. April 2018 was the first official month where carriers could be fined, ticketed or put out of service for non-compliance. We first covered the emergent ELD mandate in an article that appeared on the GlobalTranz blog last December.

In that first article—”Top 5 Questions Shippers Have About the ELD Mandate”— we addressed the sources of angst many shippers were having with the new regulation.

What’s been the impact of the first 45 days of working under these new, more restrictive guidelines? What’s been the impact on rates and transit times?

Here’s what we found:

Working in the New ELD Mandate Environment

Before the ELD mandate went into effect, industry analysts and insiders were mostly pessimistic in their predictions of how it would impact shipping rates, freight capacity, transit times and more. While a few analysts warned of the end of the trucking world as we know it, most others predicted modest rate increases and longer transits which would affect delivery times, resulting in disruptive supply chains.

ELD Compliance

Prior to the ELD mandate going live, there was industry-wide speculation that we could see about a seven percent decline in the for-hire carrier sector. However, according to recent survey results from the website Carrierlists.com, compliance is averaging a high 97 percent. It appears the highest compliancy standings have been reported by super-regional carriers (1000+ miles, but not nationwide). Additionally, we’ve witnessed fewer carriers than anticipated leave the marketplace due to ELDs—an effect we attribute to a strong freight economy and high per-mile rates. While carriers may be putting fewer daily miles on their assets due to ELDs, the declines are offset by channeling loads toward shippers who are easy to work with and are advantageous for their operations and business.

Transit Times

Depending on lanes and distance traveled, transit times are increasing amongst most carriers, an early prediction that has mostly come true. With the ELD mandate in place, drivers can no longer alter logbooks, which helped some exceed government-regulated daily driving limits. We are advising our customers that many borderline lanes of 450 miles or longer—previously one-day trips—are now turning into two-day transits. For drivers, shorter work days has resulted in a 3-10 percent reduction of time on the road, according to DC Velocity. That’s also why some drivers are less inclined to take on the longer hauls of 650-750 miles per day. DC Velocity also notes that driver reticence to haul these loads is keeping supply tight, which is resulting in a “significant amount of price inflation.”

Freight Rates

At the end of last year, most carriers and 3PLs were predicting an across the board 5-10 percent rate increase. Depending on the lanes and where you are shipping in the country, rate increases could be more. Our advice is to be prepared for potential rate increases and budget accordingly so that your logistics teams aren’t surprised. It’s suggested to become more familiar with spot market costs, as dedicated capacity may start to diminish during the peak shipping seasons.  Rate increases and capacity constraints aren’t coming from the ELD mandate alone. Factors such as the driver shortage, high freight demand due to the growing economy combined with the ELD mandate are conspiring to keep rates higher.

Why You Need to Become a “Shipper of Choice”

In today’s capacity environment, carriers have the luxury of choosing to haul loads that are the most lucrative for them, which means you must eliminate the inefficiencies in your supply chain operations. When you do this, you’ll move closer to becoming the kind of customer carriers love to work with: the so-called shippers of choice.

Here are five tips to get started on your path to becoming a shipper of choice:

  1. Ample Parking—It may sound basic but having enough parking for trailers at your loading docks and warehouses means drivers don’t have to waste time finding a place to park if they are waiting to unload or pick up. The quicker drivers can get back on the road the better.
  2. First-Come, First-Serve—Drivers prefer flexibility when dropping off shipments; they also like smooth-running shipping and receiving operations. Avoid by “appointment only” warehouse and loading dock policies. Given a choice of appointment-only destinations and first-come, first serve (FCFS), carriers prefer the latter. With tighter restrictions on hours of service, drivers need the flexibility to plan their routes to lawfully comply with the ELD mandate. FCFS loading and unloading policies give drivers more flexibility when planning their days.
  3. Avoid Detention Fees—Avoid making your carriers wait too long. As a general rule, when carriers wait over two hours you will accrue detention fees and could potentially be flagged as a shipper to avoid due to inefficient dock operations. Make every effort to streamline your operations to minimize wait times for drivers.
  4. Allow Drop Trailers—If drivers have the flexibility to drop off trailers vs. waiting to load or unload, you increase productivity for carriers, which in turn helps keep your freight costs down. Drivers can also be exposed to wasteful waiting time due to shippers spending time locating an available dock. Structuring smooth facility operations is important to once again minimize wait time for drivers.
  5. Provide a 48-Hour Lead-Time—When you give your logistics suppliers a 48-hour lead time they will have more time to find the best carrier for your shipment at a competitive rate. Less than 48-hour lead time pushes most providers to source for available capacity within the current spot market rather than dedicated markets. Spot markets typically will yield higher freight costs from carriers due to the volatile level of demand in that particular timeframe.  It is important to provide as much lead time as possible to your provider in an effort to reduce freight costs.

Stay tuned for next week’s blog where we will discuss becoming a shipper of choice in greater detail.

Learn more about becoming a shipper of choice and driving efficiencies into your supply chain. Call 866.275.1407 or Contact Us. 

This is part II of our series on how blockchain technology will impact the supply chain and logistics industry.  In Part I, we talked about how blockchain technology can solve logistics inefficiencies and shed light on how it works.  Today we’re discussing 10 benefits and use cases for blockchain in logistics, and how the logistics industry will advance this technology for widespread adoption. 

10 Benefits of Blockchain in Logistics

 

1. Monitors Performance History

Monitoring the performance history of carriers and other suppliers through a blockchain framework allows parties to see evidence of past performance, including on-time deliveries, on-time pickups and more.

2. Maintains History of High-Value Assets

Having a trustless and accurate record of asset history is imperative to ensure it complies with safety standards from factory floor to delivery.

3. Improves Quality Assurance

Every authorized member involved in a transaction can access critical data to validate its milestones. Evaluating freight at pick-up and delivery locations reduces unsubstantiated disputes.

4. Improves Compliance

Blockchain and ELDs (electronic logging devices) are a natural pair. ELDs can send a stream of driver behavior and route data to a blockchain in real-time. Pairing this information with traffic data and weather data gives carriers and shippers a tool to improve routing.

5. Monitors Real-time Freight Capacity

In trucking, available capacity can change by the hour. Through blockchain transparency, you will know when and where capacity opens up.

6. Improves Payments and Pricing Processes

Payment processing and settlement is secure in a blockchain, and transaction information is easily accessible. Shippers will have more data to determine rates.

7. Detects Fraud

Every transaction that takes place on a blockchain is visible to everyone on the network. Nothing can be removed without it being detected. This transparency obviates the areas where fraud occurs, such as double brokering. Through the common practice of notarization and nonrepudiation, shippers can securely track the creation and modification time of a document or transaction—confirming authenticity.

8. Prevents Theft

A blockchain can contain detailed information and rules, such as photo IDs and rules for the pick-up and delivery of freight. These added precautions will improve security and reduce the possibility of freight theft. A blockchain also enables the secure transfer of titles for what are known as smart properties.

9. Proves Provenance

Provenance ensures that every shipped good includes a digital “passport” that proves its authenticity. These so-called passports include essential data such as where and when was the product manufactured and what steps it took throughout its journey.

10. Allows You to Issue Smart Contracts

The ability to issue smart contracts is considered by many to be the Holy Grail of blockchain technology. Smart contracts are enormous time and money savers. Says Entrepreneur, “With smart contracts, agreements can be automatically validated, signed and enforced through a blockchain construct—eliminating the need for mediators and therefore saves the company time and money.”

Barriers to Widespread Blockchain Adoption

Despite a large number of industries impacted by blockchain advances, there exists a handful of concerns that are slowing the technology’s widespread adoption. Here are four common barriers:

To Advance Blockchain Technology We Need Standards

The experts agree that one factor necessary for the advancement of blockchain technology within the logistics industry is the creation of standards. Today, BiTA is the vanguard of the movement leading blockchain standards creation in the transportation and logistics industry.

The drive to enact worldwide blockchain standards brings to mind the creation of another set of standards that transformed an industry in the 1960s. EDI (electronic data interchange) standards developed by the U.S. transportation industry laid the foundation for secure communication between different computer systems. The EDI standards would eventually transform how banks communicate with retailers—a platform that allowed for the quick and simple exchange of data.

With thousands of companies eager to develop and promote blockchain technology in logistics, BiTA is investigating use cases and developing a common framework for which the industry can build revolutionary blockchain applications. In May 2018 BiTA will hold its Spring Symposium (BiTA’s first symposium occurred November 2017) where members will discuss how the organization will develop and implement blockchain standards.

While it’s difficult to predict exactly when the logistics industry will experience wide-scale blockchain adoption, in the meantime, you can help by getting involved and watching for opportunities to pilot programs within your logistics operations and supply chains.

White Paper: Introduction to Blockchain Technology in Logistics

GlobalTranz Reports Record First Quarter Revenues

PHOENIX (May 8, 2018)  (BUSINESS WIRE) GlobalTranz Enterprises, Inc., a leading technology-driven third-party logistics (3PL) solutions provider, today reported a first-quarter revenue increase of 43 percent and earnings growth of 118 percent year over year. GlobalTranz continues to outpace many of its competitors in the industry through customer expansion, financial growth and technology leadership.

The company continued its technology leadership with the release of its next-generation TMS technology. This includes additional features and benefits for shippers, carriers and the company’s independent freight agents. Among these are new capabilities around data analysis, predictive analytics, AI, machine learning and actionable reporting. The company’s new platform is completely multimodal, multivendor, multicurrency and fully supports all mobile environments.

“As logistics increasingly becomes digitized, GlobalTranz is pioneering the use of new technologies to create efficiencies in supply chain operations,” said Greg Carter, CTO. “Our TMS platform is driving breakthrough innovation in digital freight matching, capacity sourcing, real-time visibility and predictive analytics. We’re enabling businesses to simplify their logistics management, uncover valuable insights and make data-driven decisions that drive cost savings, operational transformation and create competitive advantages.”

Commenting on the company’s record first-quarter results, Bob Farrell, chairman and CEO said, “Our strong Q1 performance was the result of our continued focus on expanding our relationships with existing customers and winning new customers with advanced technology and products. We are excited to see our customer relationships become more strategic and focused on making logistics an integrated and differentiated part of their businesses.”

Company highlights for the first quarter of 2018 include:

Additionally, GlobalTranz was named among the Top 10 Freight Brokerages in the U.S. by Transport Topics in April.

“Our rapidly growing managed transportation offering is allowing us to move up the value curve with our customers,” said Renee Krug, CFO. “Our commitment to building solutions that position our customers for market-leading growth is driving our financial performance.”

The company remains confident that it will continue its strong growth throughout 2018. “Both our freight agent and direct sales channels continue to demonstrate proven industry leadership. Our people and partners are the best in the industry, which is driving our success,” said Farrell, “Execution of strategic mergers and acquisitions will add to our current run rate of over $1 billion in revenue.”

For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.

About GlobalTranz

GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. Transport Topics ranked GlobalTranz the 10th largest freight brokerage firm in the U.S. for 2018.

Blockchain, which first entered our lexicon with the arrival of cryptocurrencies like Bitcoin in 2008, is now a technology that promises to transform entire industries.

Blockchain technology is considered by many to have as much potential as AI (artificial intelligence), which is competing for research and investment dollars. Private and public companies, colleges and universities, and government agencies are all working quickly to leverage blockchain technology’s potential.

For the logistics industry, blockchain is promising to create transparency of all documents and transactions across the freight landscape, ultimately increasing the efficiency, agility and innovation of supply chains.

In a two-part article, we examine how blockchain technology can solve logistics inefficiencies, shed light on its many benefits and share real-world examples of how it’s already impacting businesses like yours.

Blockchain Can Solve Logistics Inefficiencies

Every day, shippers, carriers, brokers and other logistics professionals must navigate a plethora of options and “what if” scenarios when sending a truckload of goods across the country, all while documenting each step of the journey with detailed paperwork. The current process of moving goods from origin to destination is complex and lacking a single source of truth to store and track all transactions and constituents involved.

Blockchain technology is particularly adept at simplifying complex and fragmented processes— like those that are commonly found within the logistics and supply chain industry. Blockchain technology records transactions, tracks assets and creates a transparent and efficient system for managing all documents involved in the logistics process.

How Blockchain Technology Works

How Blockchain in Logistics Works

Blockchain is a distributed ledger that digitally records transaction history between parties. Information gets stored in blocks of data that are “chained” together. Each data block added to a chain is date stamped, unique and encrypted, which makes it unalterable. Information in a blockchain can’t be hacked or counterfeited and is immediately “trusted,” and therefore, accepted by anyone with access to your chain. 

Blockchain technology helps companies implement smart contracts—computer code hosted on a blockchain that defines and executes the terms of an agreement between parties.

In the typical scenario of shipping goods, numerous parties are involved—shippers, 3PLs, carriers and consignees. For every shipment, transactions and documents get executed and saved—BOLs (bills of lading), invoices, PODs (proof of delivery) and more. Each transaction becomes a permanent ledger record that’s easily validated by anyone with access to the chain. Using data from a blockchain, the network members can validate the block or payload of the transaction, creating a transparent and efficient system for managing all documents and transactions involved in the logistics and supply chain process.

In Part 2 of our blockchain in logistics series, we’ll discuss 10 benefits and share real-world examples of how it’s already impacting businesses like yours.

PHOENIX (May 3, 2018) – (BUSINESS WIRE) – GlobalTranz Enterprises, Inc., a leading technology-driven freight management solution provider, today announced it was recognized by the World Health Care Congress as a Silver Medal winner for the 2018 Health Value Awards.

Winners were announced at the 2018 World Health Care Congress in Washington, D.C., on Sunday, April 29, and were sponsored by World Congress, the Validation Institute and the Health Rosetta Institute.

The event brought together 350-plus nominees competing to be the best and brightest applicants to improve health outcomes, reduce costs and implement innovative health industry practices for their organization.

Criteria for the prestigious award included a value proposition, longitudinal data to support better health outcomes at lower cost, performance metrics, credible methodology, purchaser testimonials, scalability, durability, disruptive approach and willingness to assume financial risk.

“The Health Value Awards are helping transform the marketplace toward improved health outcomes and reduced healthcare costs,” said Renee Krug, CFO of GlobalTranz. “As an organization, we are committed to providing high-value and progressive healthcare benefits to our employees and their families. We appreciate the recognition as a Health Value Award Winner.”

Recognized for offering the following benefits, GlobalTranz continues to provide market-leading health care benefits for employees and their families:

About GlobalTranz

GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2018, Transport Topics ranked GlobalTranz as the 10th largest freight brokerage firm in the U.S. For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.

MEDIA CONTACT:

Annie Graupner

Marketing Manager

(612) 229 – 4040

annie.graupner@globaltranz.com

8 Supply Chain Trends Shippers Need To Know

For many companies, logistics and supply chain management is no longer a simple cost of doing business, but a way to generate competitive and operational advantages. Technology has become the perfect enabler for most advances in the supply chain.

Gartner, one of the most trustworthy voices in technology research today, published its list of top supply chain technology trends businesses should be watching. These technologies can help companies create leaner, faster and self-orchestrated logistics and supply chain operations.

Top 8 Supply Chain Technology Trends of 2018

1. Artificial Intelligence

Artificial intelligence (AI) is an advanced technology that is already offering tremendous promise for the logistics and supply chain space. Gartner says, “The ability to apply AI to enhance and automate decision making, reinvent business models and ecosystems, and remake the customer experience could make many other emerging technology trends redundant.”

In logistics operations, businesses should be using a TMS (transportation management system) with AI technology as it will help optimize carrier selection, rating, routing, quality control processes and enable you to make faster and better business decisions.

At GlobalTranz, our mantra is “AI everywhere.” It’s one of our main areas of applied R&D, and we’re continuously identifying opportunities to help shippers automate as many logistics operations as possible using AI, and dedicate more time to growth-focused projects.

2. Advanced Analytics

Advanced analytics, notes Gartner, improves decision making in areas like logistics, and transportation. “Processes that previously relied on human judgment can be powered by predictive and prescriptive analytics that could have a significant impact on future demands for supply chain talent.”

At GlobalTranz, we’re developing tools that combine data across multiple systems (carrier networks, current and historical pricing environments, GPS data, traffic and weather patterns), and use advanced analytics technology to help businesses manage disruptions, reduce downtime, and effectively plan and budget logistics spend and operations.

3. Internet of Things (IoT)

End consumers are increasingly asking for detailed shipment tracking and transparency into the location of their purchases. IoT (Internet of Things) technology, like sensors and RFID, is helping to deliver real-time visibility to meet those consumer demands.

GlobalTranz’s TMS (transportation management system) GTZconnect will include capabilities to add IoT data feeds into the visibility features of GTZship and GTZcommand.

4. Intelligent Things

Intelligent things, such as robots or autonomous vehicles, are mostly being deployed in controlled environments like warehouses. Logistics service providers are using mobile robots in fulfillment operations to meet labor shortages and help businesses meet their same day and next-day delivery demands.

5. Conversational Systems

Conversational systems are chatbots and so-called virtual personal assistants (VPAs). These systems handle discovery questions and offer solutions without human involvement. Conversational systems enable transactions, handle payments, ensure delivery, and provide customer service. In the second half of 2018, GTZship and GTZcommand will include the ability to use voice commands to dispatch orders, retrieve status updates, modify shipment parameters, and pay invoices. These VPAs will also guide users through new features and interactive training material.

6. Robotic Process Automation

Also known as RPA, robotic process automation eliminates supply chain manual tasks and processes by automating them with something like structured data. “RPA allows supply chain leaders to cut costs, eliminate keying errors, speed up processes and link applications.”

7. Immersive Technologies

“Gartner estimates that immersive technologies like virtual reality (VR) will reach mainstream adoption in the next two to five years, with augmented reality (AR) going mainstream in the next five to 10 years.” In warehousing, AR technology, in the form of glasses, is being used as a hands-free system to display pick items for the employee filling an order, to help increase speed and accuracy.

8. Blockchain

Blockchain can create a more connected and efficient supply chain by enabling real-time, secure, and inalterable information sharing between manufacturers, shippers, carriers, brokers, consumers and more. Several companies are piloting blockchain technology within the supply chain, including Walmart and IBM.

Eventually, blockchain technology will impact logistics management, but today we’re in the infancy stages. In 2017, GlobalTranz became one of the first 3PLs to join BiTA (Blockchain in Trucking Alliance), to develop industry-specific standards and help grow and educate the logistics industry about this promising technology.

The Power of Technology

At GlobalTranz, we’re committed to pioneering the use of new technologies in logistics and supply chain management to help businesses drive operational efficiency and cost savings. We’re integrating enhancements like AI, advanced analytics and conversational systems into our TMS and logistics platforms and ultimately helping businesses create competitive advantage.

Learn how GlobalTranz’s TMS, GTZconnect, can help you drive efficiency and cost savings into your supply chain.

Call 866.275.1407 or Request a Demo to learn more. 

GlobalTranz CFO Renee Krug Named 2018 Distinguished Woman in Logistics

PHOENIX (April 18, 2018) – (BUSINESS WIRE) – Renee Krug, CFO of GlobalTranz Enterprises, Inc., a leading technology-driven freight management solution provider, received the Women in Trucking Association’s Distinguished Woman in Logistics Award on April 10. The announcement was made during the Transportation Intermediaries Association 2018 “Capital Ideas” Conference and Exhibition in Palm Desert, Calif.

With 25 years of executive leadership experience, Krug has been instrumental in growing GlobalTranz from $400 million to over $1 billion in revenue during her four-year tenure. Krug also led GlobalTranz through five major acquisitions and has helped the company reach record-setting growth and profitability.

“I am humbled to be recognized by my outstanding peers in transportation and logistics,” said Krug. “This honor is a reflection of the hard work and talent of the entire GlobalTranz team and a testament to the organization’s leadership in third-party logistics and transportation management systems.”

Krug was selected this year’s honoree from a group of three finalists. She was awarded for her leadership, unique contributions to the logistics industry and overall professional success.

In addition to driving performance at GlobalTranz, Krug was instrumental in establishing CORE, the GlobalTranz corporate responsibility program that focuses on initiatives such as the environment, health and education, and community service and citizenship. Her philanthropy in the community extends beyond her corporate contributions, as Krug plays an active role in supporting several nonprofit organizations, including Feed My Starving Children, the National Charity League and the Susan G. Komen Foundation.

“Renee’s business savvy, financial expertise and exceptional operating capability are second to none,” said Bob Farrell, chairman and CEO of GlobalTranz. “Her commitment to excellence has helped make GlobalTranz a market leader in both the logistics space and in corporate culture. This distinction is a timely recognition of the impact she’s made on the industry and in the communities in which she is part of.”

Krug’s other recent notable distinctions include:

About GlobalTranz

GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2018, Transport Topics ranked GlobalTranz as the 10th largest freight brokerage firm in the U.S. For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.

MEDIA CONTACT:
Tracy Dick
Chief Marketing Officer
619-888-2324
tdick@globaltranz.com

If you were to ask a group of transportation analysts where freight rates are heading in 2018, most would say higher. That’s not surprising, considering we are riding the wave of a healthy economy. Logistics Management magazine says we are experiencing the “best global growth rate in seven years.”

What are the main factors pushing freight rates higher, and what can you do to mitigate and prepare for these increases? We’re sharing what we are learning from the carriers we work with daily and passing along insights that will help you more efficiently manage your logistics operations.

Driver Shortage & Capacity Crunch

In our conversations with our valued carrier network, the number one factor driving higher costs is a lack of qualified drivers. It’s having a domino effect, leading to today’s widespread capacity crunch.

Some carriers say they can’t hire drivers in line with the pace of growth. Ironically, carriers can buy trucks, both to replace aging equipment or increase capacity, but they can’t get the drivers quickly enough behind the wheel. Therefore, many carriers are unable to fully capitalize on today’s robust freight market.

One large regional LTL carrier recently shared that in the course of the next five years, over 20 percent of its driver force is going to retire, yet another drain on the driver pool. Depending on the source, most analysts think the driver shortage is between five to 15 percent.

That’s also why many people in the industry are calling this new reality a carrier’s market. With lower shipping capacity, carriers can, in turn, set higher prices—a natural result of supply and demand economics. At the same time, carrier costs, such as driver salaries, are increasing as a means of enticing more to join the ranks. Driver pay will continue to rise this year as carriers compete for fewer drivers.

ELD Mandate

While the electronic logging device (ELD) mandate began in December 2017, its official enforcement didn’t start until April 2018. John Larkin, a trucking analyst, says as a result of the ELD mandate, “Additional rate increases may be forthcoming.”

Driver time behind the wheel will be strictly enforced with ELDs. Gone are the days of paper logs, which are easier to alter, enabling operators to drive more hours than legally allowed. This change is having an impact on transit times, especially in the range of 450 to 800 miles. A lane that once was traveled in a day now takes two, resulting in inherent rate increases.

Density Pricing

The nature of freight is changing. As B2B buyers mirror consumer purchasing behaviors and delivery expectations, more businesses want inventories closer to customers. The result is more frequent shipments that are lighter in weight, yet can be bulkier in size.

LTL carriers get paid based on what they can load into a trailer, so an increase of lightweight and bulky items that “cube-out” a trailer leaves less room for heavier stackable items, which can impact a carrier’s profitability. To contend with the changes to freight density, carriers are adjusting their rates to focus more on how much trailer space the shipment occupies (dim-weight or density pricing) and less on weight and class. For carriers that haven’t made the jump to permanent dim-weight or density pricing systems like UPS and FedEx, these price adjustments sometimes take the form of W&R (weight and research) adjustments and/or additional accessorial charges.

How to Mitigate Higher Prices

With higher shipping prices predicted in the months ahead, there are several steps you can take to save on your overall logistics costs:

1. Identify Inefficiencies in Dock Operations
How do your employees interact with carriers? Is the driver getting in and out of your facilities quickly? What is your check-in and check-out process with drivers? The longer drivers sit idle at your dock losing productivity, the more likely your freight costs will be higher.

2. Optimize Your Packaging
Are your products adequately packed and protected in a box that’s not too big for the actual item(s)? We’ve all received packages from a seller where the item may be a small box packed into a much larger box and filled the rest of the way with bubble wrap and foam peanuts. As carriers move to rates based on the amount of space a shipment occupies on a truck rather than weight-based NMFTA classifications, shippers will need to be conscious of their packaging strategies, to avoid higher costs.

3. Combine Modes or Mode Shift
Leveraging multimodal shipping services and logistics solutions, like combining rail with truckload, or creating pool distribution opportunities, helps reduce your overall costs while mitigating capacity challenges and meeting your customer delivery demands. When you need to ship standard dry freight 700+ miles, and transit speed is not critical, intermodal shipping is an option that can drive consistency, cost savings, security and reliability into your supply chain.

4. Consider Drop Trailers
Drop trailers are often used at locations that have enough outbound shipping volume to fill multiple trailers each week. They enable shippers to load freight when convenient and combine shipments into a full truckload, which would otherwise ship as LTL. Drop trailers also reduce the amount of time drivers sit idle waiting for their truck to be loaded. In today’s tight capacity market, and with the recent launch of the ELD mandate, carriers and drivers are more conscious of dwell time and lost productivity. Using drop trailers creates flexibility for your dock and warehouse schedule, helps mitigate capacity issues, and enables drivers to quickly pick up your delivery, which in turn helps keep your freight costs down.

5. Centralize Transportation Procurement
Use a web-based TMS (transportation management system), with a network of pre-qualified carriers, to provide a consistent means to quickly compare carrier rates, transit service, and match the best carrier with your shipment. Using a TMS provides visibility to all your outbound and inbound freight, so you can see all your shipment data in one place to track key metrics and better optimize your total freight spend, which will drive operational efficiency and aggregate transportation cost savings.

6. Partner with Logistics and Supply Chain Experts
As logistics operations, capacity and rates continue to increase in complexity, 90 percent of Fortune 500 companies have turned to 3PLs for logistics management. Third-party logistics firms offer shippers access to deep carrier networks with reliable capacity, multimodal shipping solutions and transportation management software that helps mitigate freight market fluctuations, meet your customer delivery demands and gain competitive advantage.

Soften the Impact of Freight Rate Increases

Analysts are predicting shipping increases anywhere from seven to 11 percent this year, but by improving logistics operation efficiencies and leveraging the partnership, capacity and advanced technology of 3PLs, you’ll soften the impact while driving operational efficiency and cost savings into your supply chain.

Call 866.275.1407 or connect with an expert to see how GlobalTranz can help you save on your overall logistics costs and mitigate capacity challenges.

PHOENIX (April 12, 2018) – GlobalTranz Enterprises, Inc., a leading technology-driven freight management solution provider, has been named No. 10 on the Transport Topics Top 50 Freight Brokerage List for the third year in a row, moving up in ranking from No. 13 last year.

One of the most respected publications in the trucking and freight transportation space, Transport Topics annually names the biggest players in the industry to its Top 50 Freight Brokerage List. This distinction speaks to GlobalTranz’s record year-over-year growth and continued leadership in third-party logistics and transportation management systems.

“Being named among the top 10 by Transport Topics reinforces our commitment to meeting customers’ evolving logistics needs with best-in-class technology and solutions that fuel supply chain efficiencies.” said Bob Farrell, chairman and CEO of GlobalTranz. “Businesses of all sizes are turning to 3PLs to create competitive advantages and respond to customer demands. With a full-suite of integrated service offerings, we’re able to drive operational excellence and help them deliver a better customer experience.”

The strength of the GlobalTranz go-to-market model creates a diverse revenue pipeline. Organic growth, strategic acquisitions and exceptional performance of transactional and managed transportation continue to contribute to the company’s success. Ongoing investment in proprietary technologies and expanded multi-modal service offerings add value for customers, strengthening GlobalTranz’s market leadership on a global scale.

GlobalTranz announced its 2017 financial results, posting total revenue gains of 55 percent and earnings growth of 42 percent year-over-year, outpacing many competitors in the industry. With the successful completion of five acquisitions in the last fourteen months, including Global Freight SourceLogistics Planning ServicesWorthington Logistics SolutionsApex Logistics and AJR Transportation, GlobalTranz continues to identify targets for strategic mergers and acquisitions.

Beyond the recent recognition by Transport Topics, GlobalTranz has been acknowledged in logistics and business communities for its innovation, growth and leadership. Recent accolades include:

About GlobalTranz

GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2018, Transport Topics ranked GlobalTranz as the 10th largest freight brokerage firm in the U.S. For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.

MEDIA CONTACT:
Tracy Dick
Chief Marketing Officer
619-888-2324
tdick@globaltranz.com