How To Negotiate Freight Rates A Tip For Small Carriers

Small carriers make up at least 25 percent of the trucks on the road providing for freight transportation services. One of the challenges confronting small carrier companies involves negotiating freight rates to their customers. Unlike the bigger Atlanta trucking companies, smaller trucking companies may have no resources available that their bigger competitors have. Consequently, small trucking businesses often do not have the same leverage as bigger trucking providers do.

Small carriers structural work-up

Smaller trucking service providers often find it difficult to negotiate their rates when they are paid according to percentage based on the gross load. Lower rates can affect the profitability of your business, but there are potential solutions that can help you improve your negotiating ability. Even small carriers have their own organizational structure and each department can contribute in the negotiating process for freight rates to potential customers. There is no doubt that even if small asset based carriers and trucking companies have limited resources, they remain to be important in the shipping industry. As businesses grow and expand to cater to regional trading, shipping capacity will never decline.

Improving the pricing department performance

Every carrier has a pricing department that is responsible for communicating your business to your target market. By way of communication, your goal is to make known the price of your services. Prior to offering your freight charges, make sure to make an inventory of your costs, including the salary of drivers, truck maintenance, tax liabilities, insurance costs and fuel expenses. Your fuel costs should be dynamically determined as the rate may change often.

These are essential factors to consider so that when your department begins to negotiate with customers, you already know your baseline costs thereby making negotiation easier. Your customer will always be asking for a discount or to lower the charges. You already know whether you should turn down the negotiation for accepting the load or you can find more room for freight rate adjustment to satisfy your customers.

Building business rapport with brokers, shippers and clients

A good business rapport will enable small carriers to turn down one load offer while at the same time be able to accept another freight service load from the same broker or shipper. It is important to disclose your expectations to your client shippers or broker in order not to offend them for turning down their freight rate. Making them understand about your pricing factors will make it easier with the negotiation of your rates that they may consequently find reasonable.

Furthermore, if your company is known for high quality customer services and modern trucking logistics, it will not be difficult to sell out your services. Your clients will be the one to pursue your rates in order to receive the same service satisfaction that they previously enjoyed. Building honest and reliable trucking services will help you build a track record that makes freight rate negotiation easier for brokers and shipping companies.

Imbue flexibility in your freight rate

While bigger trucking companies are capable of handling larger workloads, they cannot cover all demands for shipping services. That is when small carriers’ services become valuable in order to fill up the gaps in meeting the freight transportation demands in many industries. Try to make your services and freight rate highly flexible to drive more revenues to your transportation business and soon enough your clients will find your business highly accommodating with satisfying services that they can become repeat customers and regular client of your small carrier business.

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Hiring Young Truck Drivers

The trucking industry is expanding in its value as an important part of the global economic workforce. In the United States alone, freight tonnage mostly utilizes trucks for transportation. With the growing demands for quality carriers, truck drivers become an important commodity in the trucking business. There is a high demand for trucking jobs in Atlanta, and young drivers begin to fill up the gap in the employment that veteran truck drivers left after retiring.

The emergence of young truck drivers

Some trucking companies are facing the dilemma whether they should prefer hiring newbie and young truck drivers to work for them. There is clearly a big gap left for employment by retiring truck drivers and younger generation of drivers begin to emerge as a viable replacement. In a survey undertaken by the Transport Capital Partners, it appears that many carriers are open to hire younger drivers as part of their truck driver pool. A different survey, on the other hand, reported that about a third of dry van trucking companies are not very keen about hiring new level entry truck drivers, especially when the job will require long haul transportation and driving larger carriers on the road.

Training for new level entry truck drivers

Transportation companies are becoming more open to hiring young truck drivers, especially those lacking the required years of driving experience. A solution identified to resolve the uncertainties about whether they are capable of handling bigger trucks on the road is by providing them the necessary training. About 51% of trucking companies are expected to hire new truck drivers who are young and inexperienced to replace the aging workforce of truck driver in the trucking industry. Training them is one of the prudent measures that trucking companies can do in order to ensure that they can provide reliable, safe, and efficient transportation services to the public. Training young truck drivers also offer the opportunity of introducing to them the new innovative logistics in the trucking industry and make them competent in using them when delivering transportation services.

The pros and cons of hiring young truck drivers

Every trucking company will require their truck drivers to acquire a commercial driver’s license. The license guarantees that the driver has acquired the necessary skills and education to make them competent in driving buses, trucks, tractor trailers, tow trucks and other heavy commercial vehicles. The license may not suffice, however, and trucking companies need to provide the necessary training for better competency of young and inexperienced truck drivers. This will entail additional costs for employee training, but may be necessary to ensure the safety of your transportation services.

Hiring young truck drivers can benefit your company, especially when your transportation services provides long haul driving and management of heavy trucks. Young drivers have better fitness and stamina to withstand the stress of long driving and their reflexes are better when maneuvering heavy trailers or tractors. Truck drivers may also provide assistance in loading goods and young truck drivers are more efficient in performing this task.

Why Consumers Choose Dry Goods

Out of all the consumer products available in today's market, why should the consumer go for dry goods? Dry goods account at least half of all the products purchased in the market today. These goods are also shipped and transported either in small orders among local businesses, or internationally and overseas in large bulk orders. There are several major industries and corporations that rely on the manufacture of these goods and use them to fuel their businesses. Dry goods form an important part of the consumer economy. Many of the qualities of dry goods and the dry good industry make them key products of choice in today's market.

Easy storage

Compared to liquid-based products and heavy durables, dry goods are much easier to store. Items are usually smaller and do not have any strict storage requirements, making them much easier for both customers and distributors to handle. With regard to dry food products, they must only be protected from sources of extreme heat or cold and shielded from direct sunlight. Certain delicate fabrics should also be kept away from such conditions. Food products are transported in airtight environments, although their packaging already assures that they are sealed tightly. Dry goods products can be stored in any room or pantry that protects them from troublesome pests and vermin, like rats and cockroaches. There are also many transportation carriers that can ship dry goods safely across regions and thus help make businesses more productive.

Long shelf life

Dry goods have the longest shelf life of all consumable products. When kept in good or average conditions, these products can retain their quality for up to three years. Customers are not only assured of easy storage of their purchases, but also that they can retain their quality for much longer periods than other consumables. This is particularly beneficial for food products, prompting customers to buy packets or powdered goods instead of their liquid counterparts, such as powdered milk versus regular liquid milk that spoils quickly. Long shelf life makes shipment of these products easier because they do not spoil quickly.

Usability and serviceability

Dry goods are very versatile in how they can be used. Different kinds of fabrics are utilized by a variety of lucrative industries. Examples of some of the products they can produce include clothes, bags, cushions, curtains, towels, and furniture coverings. Paper products also have a wide range of usability, from being sold plain as is, to forming the base for products such as books, notepads and notebooks. Offices, schools and other organizations show how serviceable these sundry products are, regularly benefiting from their variable usability as well as from their easy storage and affordability.

Affordability

Dry goods are generally more affordable than soft goods or durable products, owing greatly to their easy manageability. These products are smaller than other such consumables, but offer a great range of benefits for a much lower price. Their affordability makes it easier for both large corporations and small businesses to order them in bulk and even avail themselves of the storage facilities offered by most shipping companies.

Shipping dry goods safely

Dry goods companies usually expand their operations across regions and rely mostly on carriers to transport their products from one place to another safely. There are many types of trucking services available that can ensure the safe delivery of dry food products and dry goods across destinations, making both the dry goods business and trucking companies prosper as important players in the commercial industries of dry goods production and shipping.

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Issues Affecting Dry Goods Trucking Service

The dry goods industry is one of the most successful and massive consumer industries in the global market. Dry goods range from a variety of products, and demand for them is steadily rising. More companies are facilitating their transportation and shipment across regions today and the most common forms of these shipments are made through trucking deliveries. Good coordination and management are a few of the qualities needed for a successful goods transport. However, there are a few cases wherein these jobs do not go as planned. There are several unforeseen and mishandled factors that could negatively affect a dry good trucking job or disrupt it completely.

Poor vehicle maintenance

It is always important for trucks to be properly checked before carrying out a transport job. It is the job of the maintenance team to make sure that the truck is structurally reliable and fit for the journey and that there is a very small chance of any malfunctions happening. All its systems therefore must be working properly. There are numerous things that could go wrong if a truck is allowed to transport without being thoroughly checked. It could encounter accidents on the road or break down, causing an unwanted delay in the transaction. In worse cases, damage to the truck can lead to damage of the goods. This presents a serious compromise in security for clients, as they can no longer be assured that their goods will be transported safely.

Lack of communication

Close coordination is a must for a dry goods transport, especially for those done in bulk or carrying valuable cargo. This communication allows the managing logistics team to guide the driver through the best routes that enable a fast and safe journey. This also enables the driver to alert the team immediately if he senses any problems that could affect the delivery. Insufficient communication between the driver and logistics operations could greatly delay the delivery and put the security of the goods at risk. This communication is usually carried out through the use of GPS technology, thus it is important that both the driver and managing officials learn how to properly use such devices.

Improper goods storage

While dry goods are known for their easy manageability in terms of storage, they must still be kept properly in the hull of a carrier truck. They must be stored in a way that keeps them in a good condition throughout the journey. Dried food products must also be kept under the proper temperature range and environment.

Environmental conditions

Bad weather conditions can greatly risk the safety of both the delivered goods and the driver. To avoid such problems, it is best for the managing operations team to be aware of the weather conditions on the day of a transport and immediately inform the client if any weather conditions may cause a delay in delivery. If conditions become too serious for any kind of transport job, the delivery is usually postponed altogether.

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Laws and Regulations Governing Dry Goods Businesses

The dry goods industry is one of the most lucrative and profitable consumer industries of today's economy. Being a major part of the global economic market, it is important that this industry be moderated by the proper rules and regulations to assure that business is conducted smoothly and ethically. As with all the other types of industries, dry goods companies, both local and international, are required by law to stick to these rules to promote greater business integrity and to protect their assets and profits.

Environmental laws

The U.S. Environmental Protection Agency and several other environmental agencies around the world are responsible for mitigating the impact of different industries have on the environment. It is their task to make sure that all local goods manufacturing businesses and their owners understand several environmental laws and to act in strict accordance with them. Specifically, these businesses require several permits with regard to waste discharge and air pollution. These companies are mandated to obtain permits that strictly prohibit air pollution, improper waste disposal, and activities that could harm both the immediate natural surroundings of the business or any wildlife or endangered species. Even dry goods carriers respond to the need for the environmental-friendly transportation solution of goods. Trucking logistics have improved the sustainability of their transportation technology with viable green supply chains in their operations.

Financial matters

Finance laws protect the interests of dry goods corporations by keeping their owners informed of the proper financial laws that regulate most businesses. The Antitrust Law governs competitive bidding between both private and government sectors to assure that each business gets the right amount of goods for fair prices. Such laws are strictly enforced by the Federal Trade Commission and the Department of Justice. Their goal is to allow businesses to engage in free competition. The Bankruptcy Law allows business owners to pay off debts by filing for bankruptcy. Typically, business owners sell off available and even personal assets to satisfy debts.

On marketing

Business owners are expected to know the proper laws for selling their products on the market. The key components of a good marketing plan involve research, pricing, packaging, distribution, advertising, and customer service. To avoid any false marketing claims for the sake of their customers, businesses must abide by the requirements for product labeling and advertising for specific products. This is especially essential for consumer products. Business owners are expected to adopt the same laws for online businesses. They are responsible for taking up the required copyright and privacy laws to protect against online theft, as well as to assure that clients can conduct online financial transactions with them safely and securely. Dry goods companies are likewise becoming more choosy on how to safely transport their goods from one destination to another. Hiring a reliable and trusted carriers is an important decision for their business.

Employment and labor

Strict federal rules protect the welfare of employees in big businesses. Owners of dry goods corporations are expected to abide by these rules in employee treatment and in handling wages and benefits. The U.S. Department of Labor lists down several rules that promote equal employee rights and protect against discrimination and harassment. Many large businesses also provide benefits for their employees, such as in healthcare and special privileges. Employers are also expected to encourage and even help their trusted employees in attaining further employment opportunities.

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Tractor Trailer Safety – Avoiding Road Accidents

Tractor trailer accident is very common on the highways. There are about 500,000 accidents on the average every year in the United States involving large trucks that are about 80,000 pounds in weight. As a result, highway accidents involving tractor trailer trucks end up in fatalities. Truck driver safety has become a major concern among the authorities and even the owners of cargo trucking companies recognize the problem.

Tractor trailer trucks need skillful drivers

Trailer trucks can weigh almost 25 times heavier than a regular vehicle and it requires professional truck driving skills and responsible drivers to maneuver large trucks on the highways. Because of the size and weight of cargo trailer rental trucks, it is not easy to take control over the vehicle while it is on the road.

Truck drivers admit that a big truck requires a skillful driver. For instance, it may take about 300 feet before a large truck can completely stop when running at 55 mph. Taking control over a large vehicle requires a higher level of driving skills, that is why most southeast trucking companies are getting more peculiar about setting a high standard when hiring truck drivers for their companies. This is one way of reducing the risks of highway accidents involving big trucks like a tractor trailer or large cargo trucks.

Upgrade a trailer truck driver skill

While your drivers are already professionals, you can upgrade their skills and experience by sending them to attend driving trainings and seminars that are usually conducted by the transportation authorities within your state. It helps to keep them updated about the latest traffic rules and highway driving regulations to ensure that your fleet are safe in the hands of your trusted and skilled employees. Some of these seminars will teach commercial truck drivers on how to manage a driver’s fatigue syndrome and techniques on how to drive under certain climate conditions that can increase the hazards of driving on the highways. Your drivers will become more responsible and will likely become confident on how to respond to contingencies during road accidents or emergency situations.

Comply with maintenance requirements

Trucks with an actual weight of 4,500 kg or more are required to undergo through a daily inspection routine. By conducting a regular maintenance check-up of your fleet, you can detect any potential problems on the vehicles prior to dispatch on the road. Some road accidents are caused by faulty mechanical issues that are preventable by performing a regular maintenance checkup on vehicles. This is a safety regulation process that you can internally implement within your organization to avoid the common risks of accidents on the road. Bigger companies usually have their own teams of mechanics who conduct an inspection on each truck before they leave and upon arrival.  Trucks that need repairs are usually impounded for overhauling to ensure that they are in safe and good running condition. 

Road accidents involving trucks are usually preventable. It usually takes responsible driving and proper maintenance of the vehicles and the observance of road safety standards that can reduce the risks of highway accidents.

Logistic Solutions Among Southeast Trucking Companies

The use of logistics among the southeast trucking companies is important because of its significance in improving the productivity of their business while enhancing the efficiency of their services. Among the major operational contributions of trucking logistics include the improvement in the management of truck driver routes, optimizing the fuel consumption, improving the green supply chain of the business and to make the trucking services highly efficient in meeting the demands of customers.

Generally, the use of logistics in trucking companies involves research and planning on how to improve the company’s business operations. Operational managers will find it highly convenient in selecting which truck to dispatch in servicing a customer according to their transportation needs and booking the right truck driver with the proper driver qualification for a particular fleet. Logistics improve the freight management of trucking companies, making their operation smooth and orderly.

Trucking logistic is a recognized means of reducing the economic expenses involved in managing trucking services. By using modern logistic technology, trucking companies are able to plan their operational productivity and expenses better. As a result, it eliminates the risks of incurring unnecessary operational expenses, leaving more savings for the business in the process.

According to studies, trucking companies are able to cut down operational expenses by 10% by adapting logistic technology in business operation. By adapting logistic technology, goods are transported in time, with companies having the capability of monitoring the arrival and delivery of the goods in real time. It is also easier to measure the productivity costs and savings, as well as in managing employee productivity and efficiency of the service by a trucking company. Owing to the distributive efficiency across all areas of the business operation, savings are generated by the trucking company, making them capable of offering their services to their customers at a lower and more reasonable fee.

Common logistic services used by trucking companies are the following:

1.    Logistic outsourcing. It allows the trucking company to obtain logistic tools for warehousing, managing inventories, cross-docking, freight and transportation solutions.

2.    Logistic management software. The software is used as a tool for various data monitoring and management processes that help in automating the business chain of services within the organization. The tool helps in facilitating the workflow of the business, thereby resulting in service efficiency and productivity.

3.    Logistic management. This process basically manages the operational planning, implementation and control of the various aspects of trucking services. This logistics process enables the trucking company to provide efficient transportation services that can satisfy customers.

If your trucking company business needs logistics technology, third party logistics service providers are numerous that can provide valuable tools and solutions for your business. Trucking companies in the transportation industry are investing in logistics tools because it makes their business more responsive to their customers’ needs. Logistics technology can bring significant difference in improving the workflow performance and operational services in the trucking industry that helps trucking companies more responsive to the demands of their customers.