Clever Transco LLC’s Post

The logistics industry is buzzing with changes. A recent article dives into the shift in freight transportation and highlights some misconceptions. Myth: All shippers prefer less-than-truckload (LTL) services because they are always the cheapest option. Fact: While LTL can be cost-effective for smaller shipments, many shippers turn to full truckload (FTL) services for time-sensitive deliveries or larger volumes, prioritizing speed and efficiency over price. Myth: LTL shipping and FTL shipping are interchangeable. Fact: These methods cater to different needs. LTL is ideal for smaller, less urgent shipments that can be combined with others on a single truck, while FTL is the go-to for large volumes or critical timelines. Understanding these dynamics can empower businesses to make more informed shipping decisions. This shift represents not just a trend but a re-evaluation of how we approach freight logistics in a fast-paced market. https://lnkd.in/giaxuuXa

The freight market is still suffering with higher rates of 3rd party logistics companies across the country continuing to have to sell off fleet assets and close shop. The question continues to remain of "when will the market finally be stable again?" with answers still seeming to be no where in sight. "2024 should be a steady year" states VP & GM of freight brokerage and transportation management at Ryder System Inc, Kendra Phillips. “Right now is our year to take a step back, take a deep breath and position ourselves appropriately in the market.” Read more about the current market state below: https://lnkd.in/gybmEfxb

2025 freight rate increase update: Covenant Logistics, a truckload carrier, plans to raise freight rates in small increments. 2% to 3% in the current bid season and another 2% to 3% mid-year, per CEO David Parker. Of note, in 2024, the carrier raised spot rates a half-dozen times in Q2 & Q3 alone. Perhaps because of the continuous spot rate increases, the company is gaining more contract customers, which reduces exposure to spot-rate volatility for shippers and the carrier. https://lnkd.in/g3QGrJWN #freightrates #shipping #trucking #freight #logistics

Softening demand is impacting the transportation sector. Parcel rate increases are subdued despite carriers' attempts to raise revenue through additional GRIs and fuel surcharge adjustments. LTL and truckload rates are expected to remain relatively flat, reflecting the ongoing challenge of balancing revenue growth with competitive pricing in a soft and increasingly competitive market. This is a great opportunity to strengthen strategic partnerships with your carriers. Cap accessorials and surcharges, as carriers adjust their pricing strategies in response to market demand and operational costs. Implement a strategic capacity planning process with key carriers to optimize demand management while helping carriers optimize their fleet and assets. #logistics #strategicplanning #costcontrol #resilience

Great to connect with Karen Kroll and Inbound Logistics on the dynamics between shippers and carriers in today’s challenging freight market. It’s so important that both sides are sensitive to the realities of the other as they strive for long term, mutual value creation. Long term OTIF success is built on strategic relationships, not transactional short term thinking. https://lnkd.in/eFYiiFdr

Its that time of year again! Are annual LTL rate increases putting pressure on your transportation budget? You're not alone. Many businesses face rising costs in less-than-truckload (LTL) shipping, driven by fuel surcharges, labor expenses, and capacity constraints. One solution to counteract these increases is consolidating multiple LTL shipments into full truckload (FTL) shipments. Here's why this strategy makes sense: ✅ Cost Savings: Combining LTL shipments into a single truckload can significantly lower per-unit shipping costs by maximizing trailer utilization and avoiding high LTL fees. ✅ Improved Transit Times: Consolidated shipments typically follow a direct route, reducing handling and transit time compared to traditional LTL that moves through multiple terminals. ✅ Reduced Damage Risk and W&I: With fewer touchpoints, your products are less likely to be damaged or delayed, enhancing customer satisfaction. ✅ Environmental Impact: Fewer trucks on the road mean reduced fuel consumption and lower carbon emissions—a win for your business and the planet. This option is not for every shipper! You need to identify your top receivers, where they are located and IF shipments can be strung into a multi-stop route. If you're considering optimizing your supply chain with consolidated shipping, let's discuss how our team at Hermann Services can help you make the transition smoothly and cost-effectively. Have you tried this strategy, or are you interested in learning more? Let’s connect in the comments or via direct message! #Logistics #Hermannservices #Shipping #Transportation

🚚 Unlocking Efficiency: Why Choosing a Freight Broker Trumps Individual Asset Carriers 🚚 In the dynamic realm of logistics, making the right decisions can make or break your supply chain efficiency. When it comes to transportation management, opting for a freight broker over individual asset carriers can be a game-changer. Here's why: 1️⃣ **Access to Diverse Capacity**: Freight brokers have access to a vast network of carriers, spanning various modes of transportation and geographic regions. This means you're not limited to the capacity of a single carrier but can tap into a pool of resources tailored to your specific needs. 2️⃣ **Cost Savings**: By leveraging their extensive network and industry expertise, freight brokers negotiate competitive rates on your behalf. This can result in significant cost savings compared to dealing directly with individual asset carriers, especially in volatile market conditions. 3️⃣ **Efficiency and Flexibility**: Freight brokers streamline the logistics process by handling everything from carrier selection to freight tracking and documentation. This frees up your time and resources, allowing you to focus on core business activities while enjoying the flexibility to adapt to changing demand and market dynamics. 4️⃣ **Risk Mitigation**: Partnering with a reputable freight broker mitigates risks associated with carrier reliability, capacity constraints, and regulatory compliance. They conduct thorough due diligence on carriers, ensuring that your shipments are in safe hands every step of the way. 5️⃣ **Technology Integration**: Leading freight brokers leverage advanced technology platforms to provide real-time visibility and analytics, empowering you with actionable insights to optimize your supply chain operations and make informed decisions. In an increasingly complex and competitive landscape, choosing a freight broker offers unmatched agility, cost-effectiveness, and peace of mind. Don't settle for the limitations of individual asset carriers—unlock the full potential of your logistics strategy with a trusted partner. #Logistics #FreightBrokerage #SupplyChainManagement #Efficiency #Innovation Q-Line Trucking https://lnkd.in/gCyhwHAv

Shippers and carriers have different priorities, but still need to find a balance so they can successfully craft contracts that meet each parties' needs. Want to know one thing to keep in mind according to our Management Consultant Shaun Rheeder? Knowing over-the-road market rates and trends.    He shares more on this and other key considerations for balanced shipper-carrier contracts in Inbound Logistics. https://lnkd.in/gmfUXMxM

Unpacking the Truth: Debunking Myths About Freight Brokers. Freight brokers often face misconceptions that undermine their true value in the logistics industry. Let’s set the record straight: Myth 1: Freight Brokers Are Just Middlemen Reality: Freight brokers are problem-solvers. They connect shippers with the right carriers, helping companies move goods more efficiently and at lower costs. Their expertise simplifies logistics and prevents costly mistakes. Myth 2: Brokers Don’t Bring Any Real Value Reality: Brokers are the backbone of seamless deliveries. They manage everything from negotiating better rates to tracking shipments and resolving last-minute issues. Their ability to navigate challenges adds tremendous value to every delivery. Myth 3: Going Direct to Carriers Saves Money Reality: Brokers have strong relationships with carriers, which means better rates, flexibility, and reliability than going it alone. They ensure that your freight gets where it needs to go, without the headaches. Freight brokers aren’t just a link in the chain—they’re the key to smoother, more cost-effective logistics. When you understand their true role, you unlock new levels of efficiency and success. #FreightBrokers #LogisticsSolutions #SupplyChainSuccess #EfficientShipping #FreightMythsDebunked #DoverServices #BlairWoyen

Are you looking to bring stability to your freight transportation strategy in the face of market volatility? Our latest blog dives into the reasons behind freight transportation volatility and provides concrete strategies to help you overcome it. https://lnkd.in/eUPjZ4Pq #transportationprogram #stabilitystrategies #transportationinsight #gobeon