On the Front

Category: Industry Trends

LTL Rates Increase

May 25, 2017 by Kellie Newman

As 2017 progresses, we continue to see more signs of aggressive price increases within the LTL market. Carriers have invested a significant amount of money implementing new technology to ensure all shipments moving through their terminals are priced accurately which can translate into reweighs and reclassifications for shippers. According to multiple national LTL carrier sources, capacity is tightening rapidly and many are looking to implement “take it or leave it” increases upwards of 20+%. This is a sure sign the economy is changing and price increases are not going away anytime soon. Recently a carrier rep told us their president mandated a 20% increase in revenue per bill and instructed reps to walk away from bad business. Another mentioned they are pushing for a 91% OR (operating ratio) no matter what it takes. Last year, according to YRC CEO James Welch, he said ”Our contractual pricing has continued to increase between 3 and 5 percent. We’re going to continue

Posted in LTL Market Trends, Industry Tips, Industry Trends, Industry Updates, Freight Management, TMS Solution

Transparency within Transportation

March 03, 2017 by Kellie Newman

We have always believed relationships between shippers, carriers and 3PLs should be honest, open and transparent - all qualities Recon has firmly stood by since our founding in 2005. For this reason, we aren't surprised to see the industry move away from transactional relationships and towards true partnerships (a philosophy we have always embraced). While it's been tradition for most 3PLs and brokers to build walls and barriers between shippers and carriers to capitalize on hidden margins, we've been working hard to break down these walls. To maximize savings and efficiencies, shippers should seek expertise within freight management companies with a business model offering collaboration and transparency to yield the best results. As noted in the article below, "The topic of alignment remains relevant, and shippers and 3PLs agreed on the importance of openness, transparency and effective communication to overall success." With the combined influence of increasingly

Posted in Transparency, Industry Trends, Freight Management Solutions

Increasing LTL Complexity – The Importance of Proper Commodity Descriptions

February 07, 2017 by Kellie Newman

Managing LTL freight has continually become more and more challenging over the past several years. While “surface” pricing appears to be soft, underneath the surface carriers are looking everywhere they can to find additional opportunities for revenue. In many cases it’s understandable – shipments outside the normal, commercial, dock-to-dock moves are more costly to service and should have additional charges. Residential, limited access, and lift-gate deliveries (to name a few) all involve more time, hence more money. Knowing your customer’s specific requirements prior to setting up the load is imperative to receiving an accurate quote. Carriers have traditionally had lengthy rules tariffs which identify and explain these additional charges, but they were often not strictly enforce. However, they have become smarter on their margins and what is impacting their costs, causing a shift in the LTL environment. Not only are carriers now billing for additional

Posted in Industry Tips, Industry Trends, Freight Management, Commodity Descriptions

Watch Your ACC! Understanding and Managing LTL Accessorials

January 10, 2017 by Kellie Newman

Watch your ACC! Understanding and Managing LTL Accessorials As shipping costs rise, it’s more likely small businesses will search for ways to save money within their supply chain operations. In doing so, it’s important to be aware of any potential hidden costs, including accessorials. Over the years, we have observed carriers become stricter with applying accessorial fees to cover inefficiencies when handling shipments outside “the norm.” While manufacturers cannot prevent all accessorial charges, they can take steps to become more proactive. Before learning how to manage accessorial fees, it’s important to understand what they are and why carriers charge for them. Simply put, accessorial fees are added charges to your freight invoice when extra services are required to handle your shipment. Accessorial fees are often added to the invoice after delivery and can be seen as hidden or unexpected fees for manufacturers. Some common accessorial fees include (but

Posted in General, Freight Management, Accessorials, Industry Tips, Industry Trends

New Year, Same Dependable Recon

January 06, 2017 by Kellie Newman

As we begin the New Year, the Recon family would like to wish you and yours a happy, healthy and prosperous 2017. Like many of you, Recon looks forward to another year of business and helping our customers succeed in the New Year. Heading into 2017, we wanted to take a step back and understand our customers’ needs and what they value. Recon is not your typical 3PL or broker; to say we value transparency and a partnership for the long-haul is an understatement. We believe in building and cultivating relationships for the betterment of your business while always remaining open and honest. So exactly how is Recon different? To begin, you can always rely on quick, outstanding customer service with each and every contact. We tailor a solution to your needs; whether it’s lower freight costs, reporting and analyzing, freight bill auditing and payment, consulting services, freight rate negotiations, state-of-the-art TMS accessibility, or a valued partner in the industry

Posted in General, Freight Management, Lowering Freight Costs, Industry Tips, Industry Trends, Recon Logistics, Transportation Management, Logistics

Logistics Costs Rise 2.3 Percent in 2013

June 17, 2014 by Recon Logistics

"The highly anticipated 2013 "State of Logistics" report describes last year's logistics environment as uneven. After a slow start to 2013, mid-year shipments were strong before a very deep dive at the end of the year with not much movement in freight rates across the modes." "Trucking capacity is becoming a "more severe" issue for shippers. The truck driver shortage is the "No. 1 concern for trucking executives," who are coping with higher costs for drivers as well as compliance with tougher government regulations regarding hours of service and other driver standards. All this capacity reduction in trucking likely means higher rates for shippers. Wilson said carriers should be able to "significantly" raise truck rates this year, "probably in the 5 to 8 percent range." For the full article click here.

Posted in Logistics, Freight Management, Industry Trends, Industry Updates, Transportation Management

Reweighs and Re-classifications out of Control?

June 09, 2014 by Recon Logistics

Have you noticed an explosion of reweighs and re-classifications with your freight? More and more shippers are voicing concern and it's become epidemic.  More than half of the reweighs we investigate turn out to be carrier errors, and shippers have had enough of this mess. A lot of shippers have an exact process and because of this, they refuse to accept any reweighs. They weigh each skid on a certified, calibrated scale, print the scale ticket and attach it to the corresponding pallet being shipped. They are doing their part to be as accurate as possible. When reweighs happen in these situations, the onus should be put back on the carrier. The shipper should not have to waste their time proving the weight of their shipment. Carriers have been wrong on far too many reweighs recently. Yes, there are shippers out there who have no idea

Posted in General, Reweigh, Industry Trends, Industry Tips, Freight Management, LTL Carrier Inspection, Lowering Freight Costs

Important LTL Information - Reweighs, Classifications, Inspections

March 14, 2014 by Hank Newman

Reweighs, Classifications, Inspections - Why are they happening, why does it seem like it's escalating recently, and what can you do about them! LTL carrier inspections resulting in reweighing shipments, re-classifying shipments, and adding accessorial charges is now epidemic, but before we get into how to avoid them it's necessary to understand a little history and to have an appreciation for the carrier side of things. LTL carrier profitability has always been under serious pressure due to an abundance of capacity and competition in the marketplace.  The recent recession crushed margins for these carriers, but the recovery wasn't as kind to them as other modes.  Most are still scrambling for market share and find price increases difficult, but one thing the recession taught us all was to be lean and be smarter.  Technology

Posted in Reweigh, Industry Trends, Industry Tips, Transportation Management, LTL Carrier Inspection, Re Classification
Subscribe to the Recon Logistic blog via RSS