Freight Types. LTL - Less than Truckload Define LTL Freight? LTL freight refers to Less Than Truckload, which usually weighs between 151 and 20,000 lb. 68 and 9,072 kg. The main task of Less Than Truckload carriers is collecting freight from shippers and consolidate that freight into enclosed trailers to the delivering place, where this freight will be further sorted for additional distances. Drivers usually make deliveries first, and then they make pickups after the trailer has been emptied; generally, most pickups are made in the afternoon and most deliveries are made in the morning. How does the LTL model work? Pickup/delivery drivers as a rule have particular routes that they travel every day or several times a week, the driver has a good chance to develop a rapport with their customers. Once the driver has filled their trailer or completed their assigned route, the driver returns to their destination for unloading. The trailer will be unloaded and the individual shipments are been then weighed and inspected to verify their conformity to the description contained in the accompanying paperwork. All LTL freight is subject to inspection for this purpose, though not all freight is inspected. Freight that is shipped LTL less than truckload has an increased risk of damage or loss as the freight may be handled multiple times while passing through freight terminals and being consolidated with other shipments on its way to the ultimate destination. Next, the freight is been then loaded onto an outbound trailer, which will later forward the freight to a breakbulk, a connection, or to the delivering terminal. An LTL shipment may be handled only in the transit, or it may be handled many times before final delivery is accomplished. The times for LTL freight are more than that for FTL, as they are not related only to the distance between shipper and sender. But LTL transit depends on the making network of Terminals and Break bulks, which are been operated by the nominated carrier and the carriers are belongs to agents and interline partners. For instance, if a shipment is delivered by the same freight terminal, or if the freight must be sorted only in transportation, the freight will be delivered in the next day after pickups. If the freight must be sorted and routed many times or if there are more than line haul that are required for transportation to the delivering place, and then the time of transportation will be longer. So if the delivery is going to remote areas, the transit time will be increased. There are several advantages for the LTL carrier. The most important one is that a shipment may be transported for a fraction of the cost. The second advantage is that the accessorial services are usually available from LTL carriers, but it is not offered by FTL carriers. These optional services include lift gate service at pickup or delivery, residential also known as non-commercial service at pickup or delivery, inside delivery, notification prior to delivery, freeze protection, and others. These services are usually charged at predetermined fees that are based on the weight What’s the difference between an LTL Common Carrier and a Volume Consolidator? Common carriers usually handle small LTL 1-5 pallets less than 4500 lbs. Common carriers use the NMFC classification 50-500 to charge for freight. Usually, there is a maximum linear feet before it has to change to a volume spot rate quote…rule of thumb: if your freight is over 10 feet in length double check your LTL rates and possibly get a volume rate quote. If your freight is light and the linear feet you take-up is more than 10 feet you may be violating their low-density minimum charge rule. Consolidators do exactly what the root word is, they consolidate freight. They charge based on the linear feet you take up in the trailer. So if you have 10 non-stackable pallets with dimensions of 48 x 48 x 96 you will be taking up 20 linear feet. You will be charged for 20 linear feet, not for classification. Some things to keep in mind, you are only entitled to 1000 lbs. per linear feet. So if your 10 non-stackable pallets weight 18klbs but only take up 20 linear feet your price would be the same. But if your 10 nonstackable pallets weigh 21500lbs, you are entitled to pay for 22 linear feet because of the 1000lbs per linear foot. NMFC Classifications: http://www.nmfta.org/pages/nmfc Carrier Integration of FTL and LTL. Shippers that have large volume of LTL freight may choose a Full Truckload Carrier to move the freight directly to a break-bulk facility of an LTL carrier. For instance, if a North Carolina shipper has a large quantity of shipments for Western US States such as CA, NV, OR, WA, and ID then the shipper can realize significant cost savings by having an FTL carrier, known as a Line haul carrier, transport the freight to a break-bulk facility nearest the center of such shipments in terms of the carriers network. In this case the shipper may choose to send the freight to a break-bulk in CA. The use of an FTL carrier to transport this freight will save your money because the freight will travel fewer miles in the LTL carrier’s network, and a further benefit will be realized because the freight will not be unloaded and reloaded as many times. This reduces the incidence of loss and damage in transit. Double Load vs. LTL Load. As long as each piece of freight is within the standard legal dimensions, the weight of a shipment is the primary concern. Distinguishing a double load from an LTL load begins first with origin, destination, and timeline similarities. Does the load pick up or deliver to points close to the other load? Are loading times flexible enough to make room for the other loads delivery times? If so, the next things to examine are weight and load dimension. The main factor in determining whether a double load can be booked is the carrier’s ability to handle the job, with respect to trailer, size, type, etc. If you maintain a good carrier equipment list, the chances you’ll have to swiftly recognize when a double load is possible will greatly increase. LTL Carriers. Access America Transport http://www.accessamericatransport.com 2515 East 43rd St., Suite B Chattanooga, TN 37407 Phone: 866 272.2057 Fax: 423 648.7782 Click Ship N Go http://www.clickshipngo.com PO Box #102 Medford, New Jersey, 08055 Phone: 877859-6217 Global Forwarding Enterprises LLC http://globalforwarding.com Manalapan, NJ 07726 Phone: 877287-0804 Freight Classes. Freight Identification and Classification Standards. The National Motor Freight Classification NMFC is a standard that offers a comparison of commodities moving in interstate and foreign commerce. In concept it is near to the groupings or systems that serve many other industries. Commodities are grouped into one of 18 classes—from the class NO. 50 to the high of class 500—based on an evaluation of four transportation characteristics: density, storability, handling and liability. Together, these characteristics establish a commodity’s transportability. The four transportation characteristics were prescribed by the Interstate Commerce Commission ICC in 1983 and then mandated by its successor agency, the Surface Transportation Board STB. Although the ICC no longer exists and the STB no longer regulates the classification process, by analyzing commodities on the basis of these characteristics and only on the basis of these characteristics, the NMFC provides both carriers and shippers with a standard by which to begin negotiations and greatly simplifies the comparative evaluation of many thousands of products moving in today’s competitive marketplace. Packaging, Rules and Bills of Lading Standards. IT is specified by The NMFC minimum packaging requirements to ensure that goods are adequately protected in the motor carrier environment and can be handled and stowed in a manner that is reasonably safe and practicable. Those specs contain various rules that govern and other-wise relate to the classification and/or packaging of commodities as well as procedures for the filing and disposition of claims. It also contains the Uniform Straight Bill of Lading and the North American Uniform through Bill of Lading, including their Terms and Conditions. Resources. National Motor Freight Traffic Association, Inc. http://www.nmfta.org 1001 North Fairfax Street, Suite 600 Alexandria, VA 22314 Toll-Free Phone: 866411-NMFC 6632 Fax: 703683-6296 Truckload TL. Truckload shipping is the movement of large amounts of cargo, generally the amount necessary to fill an entire semi-trailer or intermodal container. A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. But a less -than truckload LTL company generally mixes freight from several customers in each trailer. One advantage Full Truckload carriers have over LTL carriers is that the freight is never handled end route, as a LTL shipment will typically be transported on several different trailers. Normally full truckload carriers deliver a semi-trailer to a shipper that will fill the trailer with freight for one destination. After the trailer is loaded, the driver will return to the shipper to collect the required paperwork i.e. Bill of lading, Invoice, and Customs paperwork and depart with the trailer containing freight. In most cases, the driver; then proceeds directly to the consignee and delivers the freight themselves. Sometimes, a driver will transfer the trailer to another driver who will drive the freight the rest of the way. Full Truckload FTL transit times are normally constrained by the driver’s availability according to Hours of Service regulations and distance. Since truckload carriers are asked to ship a large variety of items, a truckload carrier will often specialize in moving a particular kind of freight. Some carriers will primarily transport food and perishable items, and others may specialize in moving hazardous and poisonous materials. Carriers will only transport specific freight because different equipment and insurance is needed for the different loads. There are also federal laws that state which types of freight that can be shipped together in the same trailer. General Freight. Shipments that are larger than about 7,000 kg 15,432 lb. are generally classified as Truckload TL in the United States of America since it is more efficient and economical for a large shipment to have exclusive use of one larger trailer rather than share space on a smaller LTL trailer. The total weight of a loaded truck tractor and trailer, 5-axle rig cannot exceed 36,000 kg 79,366 lb. in the U.S. In ordinary circumstances, long-haul equipment will weigh about 15,000 kg 33,069 lb.; leaving about 20,000 kg 44,092 lb. of freight capacity. Similarly a load is limited to the space available in the trailer; normally 48 ft. 14.63 m or 53 ft. 16.15 m long and 2.6 m 102.4 in wide and 2.7 m 8 ft. 10.3 in high 13 ft. 6 in/4.11 m high overall. While express, parcel, and LTL shipments are always intermingled with other shipments on a single piece of equipment and are typically reloaded across multiple pieces of equipment during their transport. TL shipments usually travel as the only shipment on a trailer and usually deliver on exactly the same trailer as they are picked up on. Truckload TL carriers generally charge a rate per kilometer or mile that depends on the distance, geographic location of the delivery, goods are being shipped, the type of required equipment, and the time of required service. TL shipments usually receive a variety of surcharges very similar to those described for LTL shipments above. In the TL market, there are thousands more small carriers than in the LTL market; so the use of transportation intermediaries or brokers is extremely common. Facilitating pickups or deliveries at the carrier’s terminal is another cost-saving method. In this way, shippers avoid any accessorial fees that might normally be charged for lift gate, residential pickup/delivery, inside pickup/delivery or notifications/appointments. Carriers or intermediaries can provide shippers with the address and phone number for the closest shipping terminal to the origin and/or destination. Shipping experts increases their service and costs by similar rates from many carriers, brokers, and online marketplaces. When the shippers get rates from different providers, they may find quite a wide range in the pricing offered. If a shipper uses a broker, freight forwarder, or other transportation intermediary, it is common for the shipper to receive a copy of the carrier’s Federal Operating Authority. Freight Brokers and intermediaries should be licensed by the Federal Highway Administration. Experienced shippers avoid unlicensed brokers and forwarders; because if brokers are working outside the law by not having a Federal Operating License, the shipper may face problems. Also, shippers normally ask for a copy of the broker’s insurance certificate and any specific insurance that applies to the shipment. Truckload Carriers. Schneider National, Inc. http://www.schneider.com 3101 South Packerland Drive Green Bay, Wisconsin 54306-2545 Toll-Free Phone: 800558-6767 New England Motor Freight http://www.nemf.com 1-71 North Avenue East Elizabeth NJ 07201 Phone: 908965-0100 Fax: 908965-0795 GT Logistics http://www.gtlogisticsllc.com 3 Crafton Square, Pittsburgh, PA 15205 Phone: 888588-5850 Fax: 412920-1899 Evans Distribution Systems http://www.evansdist.com 18765 Seaway Drive Melvindale, MI 48122 Phone : 313388-3200 Fax: 313388-0136 Resources and Links. Fairgrounds Transportation. http://www.arlwest.com 6833 Indiana Ave. #202 Riverside, CA 92507 Phone: 951786-9372 Fax : 951786-9399 Innovative Logistics Truckload Carriers Association - http://www.truckload.org There are several types of freight that move daily on America’s interstates. It is the job of a freight broker to decide which type of freight will be the most profitable and easily placed by your brokerage. Produce Freight. The appetite of America for food and delicacies keep Reefer’s running continuously from all parts of the country. Produce Warehouses, Wholesalers and Supermarkets need to replenish their inventories daily with fresh vegetables to keep up with the demand of the American consumer. Produce is the easiest type of freight to get that. Your customer will be the Grower, Packer, Produce Cooler, Produce Broker or the Consignee himself. Produce loads are generally very competitive for pricing that is depends on the type of produce. Shippers will require minimizing the carrier load or paying on weight. Shippers will do this so they can be assured that the carrier loads are the maximum amount of product by law. Outlined below is how most shippers will require the carrier to load for specific types of products around the country. Rates -Overall rates for the transportation of products are most generally low throughout the country. Unless you have access to a core group of carriers these types of loads will require a lot of work. Claims -To keep claims to minimum, use carriers with a great deal of experience in hauling produce. These carriers will have newer equipment that is maintained accordingly, temperature thermometers, and good insurance. Detention -Inexperienced carriers will frequently attempt to bill you for detention because of the long periods of wait time to load for produce. This is because of product unavailability, number of carriers loading, or seasonal delays. Carrier Fines -Produce shippers and receivers are notorious for implementing fines for delays in delivery. These fines are incurred because the receiver has to purchase their product at terminal markets in their area. Shippers will then impose fines for the price differences to the carrier due to the delay. Great Link for Shippers http://www.producemarketguide.com/theguide/shippers.asp Consigner Procedures: When produce or refrigerated freight is prepared for shipping it is most generally fresh from the field. When your carrier arrives for their scheduled pickup the product may or may not be ready due to product availability. They will be waiting online until the product arrives at the shipping location. Produce must be cooled down prior. When the shipment is loaded on trucks or spoilage, damage may occur during transit. This will occur because the outer layers of produce that is palletized whether bagged, boxed, or loose will cool down to the temperature of the trailer, however they will also serve as an insulation barrier against the product that is underneath the top layers. Encourage your carrier to exercise due to diligence as produce shippers file the most insurance claims on freight because the profit margins on their products are so slim and freight charges are usually very high during peak seasons and areas. Consignee Procedures. When produce or refrigerated freight is delivered most generally consignees have a set of guidelines that they should follow before receipt of the freight. If these guidelines are not followed the load could be rejected and a claim situation could arise. Here is a scenario of a consignee receiving procedures. The condition of the trailer will be examined. If there are any insects or rodent infestation, the load will be rejected. If the floor of the trailer is dirty, the load will be rejected. Pulp temperatures of product is taken and recorded from each pallet removed from the trailer. Industry standard is tail, middle, and nose of the trailer. These recorded temperatures are then compared to tolerant temperatures for the product. Product quality is examined on each pallet. Links and Resources Produce Marketing Association – http://www.pma.com Refrigerated. When you are transporting refrigerated loads there are several variables you need to be aware of prior to the loading of cargo and during the lifecycle of the load. The list below is containing items you need to be aware of that your carrier will go through while transporting your freight and also that will happen if a problem occurs once delivered. Refrigerated, also known as reefer loads, require increased rates because it costs the carrier more money to run a refrigeration unit on their trailer to keep the goods from spoiling. You should try to negotiate an additional 20 to 40 cents per mile above of your standard rate to help them cover the fuel and maintenance costs for that reefer unit. Your carrier must arrive Clean and Dry to load your cargo. You carrier must arrive at the consignee Pre Cooled to the determined temperature for the load. When your cargo is loaded your carrier will need to make sure that the cargo is not loaded above the danger line in his trailer. If this happens the cool air will not circulate properly and your load could be damaged. When your cargo is loaded your carrier will need to make sure the air chute in the trailer is not blocked as the air will not circulate and the load will run at inconsistent temperatures. Most shippers will require the load to run at consistent temperatures during transport. When your load delivers whether it is produce or other food-grade products the consignee will check the freight before he accepted it to make sure the load was transported correctly. If there has been evidence of a problem such as thawing, discoloration or wilting of your products the consignee will likely reject the load. The carrier at this point does have the option of contacting the U.S.D.A. and requesting an on-site inspection of the cargo. This is at the carrier’s expense. The cost of this inspection will generally range from $200 -$250.00. If the U.S.D.A. determines that load has not been compromised or that the evidence of spoilage is not the fault of the carrier then the consigner can not to reject the freight. If the freight has evidence of spoilage and the load is rejected, the consignee will have to notate this on the Bill of Lading. Once this happens your shipper will then want to possibly move the freight to another location in the area if they can find a buyer for the product depending upon the condition of the goods. In both cases, you and the carrier are now in charge and you re-negotiate the new freight rate for the load to the new location or back to the original consigner of the product. If the carrier has been found at fault generally the load will be rejected by the consignee. The carrier will then be responsible for disposing the freight. A claim will be filed by the shipper to the carrier’s insurance company and they will instruct the carrier on how to get rid of the contents of the trailer. Time-sensitive loads, also known as Expedited loads are handled by team drivers. You should secure rates comparable to that of a reefer load. If it is both refrigerated and time-sensitive, set your per-mile rate accordingly. If you plan to coordinate dry van or refrigerated freight, there are two terms you should familiarize yourself with lumper charges DRIVER UNLOAD. DRIVER ASSIST. A Driver Unload is when the driver is required to unload the trailer and when necessary, break it down for storage. A Driver Assist is when the driver is required to assist in the loading or unloading of the freight. Both of which, the carrier must be compensated for. Some carriers allow their truck drivers to act as the lumper or driver assistant by participating in a Driver Unload or Driver Assist loads to earn extra money. Some will not. Some carriers are owner-operators who own and operate their own trucks and simply refuse to unload their own trailers. In such cases, the owner-operator becomes responsible for hiring and compensating the lumper or driver assistant. What are Lumper Charges? A freight lumper is basically a dockworker or a driver assistant whose work involves loading and unloading trucks. Often they are hired independently by shippers as well as receivers for loading or unloading their trucks. In fact, companies are more comfortable outsourcing these activities to lumpers. Typically lumpers deal with delivering the products from inbound carriers, which would have to be unloaded by the drivers. Truck drivers have a very busy and hectic schedule and they seldom get any free time. So if they hire a lumper for the unloading process, then they can take some rest while the trailer is unload-ed. They can also get ready for their next assignment. The drivers who are required to segregate the load, split it or modify it to make it fit in the warehouse of the consigner often leave this task to the lumpers. Due to insurance liability, the drivers aren’t allowed to use forklifts and similar motorized equipment for unloading their trailers. For dry vans and frozen or refrigerated freight, the consignee provides the driver with a pallet jacket for manually unloading the trailer. In a Driver Unload, the driver has to personally unload the trailer, and if needed segregate it before storage. When it comes to Driver Assist, the driver will have to help in the process of loading and unloading. In both the cases, the carrier is compensated. Often carriers let their truck driver’s work as lumpers or driver assistants to make some quick money. However, some restrict their drivers in being a part of the loading and unloading process. At times carriers are operated by the owners who do not agree to unload the trailer themselves and so they have to hire and compensate a lumper or a driver assistant to complete the task. Requirements for Freight Delivery. Make it a point to ask the customer whether the load is a Driver Unload or a Driver Assist, and pass the information to your carrier. However, if you fail to do so, then the driver will assume that he can take a rest at the destination. Besides, the driver will not be prepared to unload the trailer and segregate the containers which contain the boxes. This is an unpleasant situation and is sure to tarnish your reputation since truck drivers tend to take communication flaws to heart. They prefer to be well prepared and hence you should do the needful and find out the proper details before updating the driver or carrier. Dry vans and refrigerated shipments often hire lumpers or driver assistants. Hence if your freight includes this then you should find out whether the customers need a lumper service or not. Lumper service rates are not static and it depends on the type of work they are required to do. Besides, the amount depends on how much they are expected to load and unload. You do not have any say in the negotiation. The remuneration is decided by the carrier or the driver on reaching the destination. But after you have decided to opt for a Driver Unload or a Driver Assist option, then you should add around 50 to 100 dollars for the shipment so that you can cover the cost involved in hiring a lumper service for the unloading process. Lumper fees fall are additionally calculated and added to the line-haul rate similar to stop off fees, fuel surcharge etc. This amount should be included independently in the rate confirmation agreement. Flatbed and Step Deck Open Top. Steel and Machinery. Industrial Freights is one of the largest facets of the transportation industry. This freight will typically consist of a variety of types of steel products and/or machinery. The loads could move as little as 65 miles and up to 3000 miles depending upon your customer. This type of freight is typically very easy to move as there are rarely any claims involved with it and the rate of damages is very rare. Rates loaded on trailers such as Flatbeds, Step Decks, and Double Drops, etc. If it requires an open trailer such as a flatbed, or step-deck trailer, you will need to determine if the load must be kept dry, or requires a tarp. Oversize loads are nearly always transported on an open trailer such as a flatbed, step deck, double drop, lowboy, RGN and multi-axle trailers. These carriers will have to carry the tools of the trade to haul these loads, which is called Dunnage. I have listed several different types of Dunnage below. Dunnage Boards. V-Boards. Nylon Straps. Drop Tarps. Chain Protectors. Pallets. Padded Chains. Coil Racks. Canvas Straps. Side Kits. Lumber and Agriculture. The agriculture industry offers a great deal of cargo for freight dispatching business in order to be available to carriers. This type of freight is generally seasonal and also regional. You will find these loads will most typically have a Line haul of 500 miles or less. This type of freight is transported by a number of different trailers. Please see the table below for the specific commodity and trailer type needed. Machinery. The majority of machinery such as lathes, press brakes, augers, etc. is transported on Flatbeds and Step Decks across America. These loads can be full truckloads or partials. In my opinion, this is the type of freight to work consistently for profit and stability. Remember: When you are moving this type of freight always get dimensions and details in this order from your shipper, the truck will require them to give you an accurate quote. Length x Width x Height Taping Required – Yes/No Gross Commodity Weight Driver Assistance Required – Yes/No Overweight and Over Dimensional Freight. Oversized Loads: Oversized loads, also called Over Dimensional or OD, are shipments exceeding the standard legal length, width, or height limits for commercial vehicles. Shipping over-dimensional and overweight freight represented special challenges. Oversized shipments require specific knowledge of government regulations and the needed trucks and trailers to accommodate the freight that you are moving. Over dimensional freight requires permits and special routing through cities and frequently have to be escorted by pilot cars, so the trucks can only travel certain hours of the day for safety reasons. Gather the Information. When considering movement of an Over Dimensional Load or Oversized Load you will need to get very specific information for the carrier to give you an accurate quote. If a truck does not have an adequate number of axles to carry and stop the additional weight of an overweight load, you will need to search for a truck and trailer capable of doing so. In order to do that, you’ll need to familiarize yourself with the types of trailers commonly used to transport oversized and overweight shipments. The general information required is typically put in this table: Required Load Information. Origin and Destination. Equipment Required. Length, Width, Height. Trip Insurance. Make and Model Of Machinery. Escorts. Exact Weight. Rigging Charges. Specifications and Drawings Permits. It is the motor carrier’s responsibility to obtain their own permits. in addition to the federal laws, each state has different regulations regarding over dimensional loads State transportation permit fees vary A permit for your freight is typically required if your vehicle dimensions or weight exceed the following: Dimensions. Width. 8 feet, 6 inches. Height. 13 feet, 6 inches. Length -Single vehicle and load 40 feet Length Combination of 2 vehicles 65 feet Length -Truck/tractor and semi-trailer 75, 65 feet Axles. Weight. Any wheels supporting one end of an axle. 11,000 Lbs. Truck tractor steering axle. 13,000 Lbs. Single axle. 20,000 Lbs. Tandem axles. 34,000 Lbs. Maximum gross vehicle weights on all axles. 80,000 Lbs. Overweight and Over Dimensional Loads. Escort Vehicles. The use of escort vehicles used for transporting over Dimensional or Overweight loads. This is an additional cost or Accessorial Charge that will generally be included above the original transportation charge. Commercial vehicle escorts are used to assist truck drivers in all areas of maneuverability. They communicate with the driver via CB or other two-way radio. Truck escort services are also used for over length shipments to assist in securing traffic lanes during difficult turns and other maneuvers. These could include but not be limited too; 1. Pilot Cars / Chase Cars This is an escort vehicle which will display signage on its front and rear bumper of an impending Oversize / Overweight load that is approaching or passing. These are required as part of the permitting process in individual states and cities. These vehicles are generally in the front of the load approximately 1 mile, and on occasion, if required by jurisdiction a chase car will also be required in the rear of the load. These cars are displaying signage on their front and rear bumper of an impending Oversize load that is approaching. These vehicles are usually used in individual states and cities as a part of the permitting process and they are required in the front of the load approximately 1 mile, and on occasion, if required by jurisdiction a chase car will also be required in the rear of the load. 2. Pole Cars. This is an escort vehicle that has a pole affixed to the front of the bumper in order to measure height of a load. This required on loads generally over 14’3 tall, but can be also required for less depending on the specific Department of Transportation laws where the load is traveling through. The use of this vehicle will ensure that the load will be able to travel under bridges and overpasses safely without obstruction. 3. State Police Escorts. The assistance of State Police is often required on Super Loads as part of the permit process when the load has exceeded Maximum dimensions or weights by state. Frost Laws. Frost Laws are seasonal restrictions on road traffic weight limits and speeds. In climates of freezing temperatures, frost leaving damage to roads has led to many states to enact laws. The State of Michigan, for example, during the months of March, April and May reduce legal axle weights of vehicles by up to 35%. Some areas also require heavy vehicles to travel a maximum of 35 miles per hour, regardless of the posted limit. Frost laws have a significant impact to the excavation and construction industries. Route Surveys. A Route survey is conducted by either mapping out the route to be traveled for an overweight or overdimensional load. There are two types of surveys that can be found. The type of survey needed depends on the type of load moved and the laws of each state. This is an additional cost or Accessorial Charge that will generally be extra charges that will be added to the original charges. Digital Survey. –This type is performed by a Topographer and it included Mapping of the route. Physical Route Survey. -This is only valid when the surveyor verifies the noted route will allow safe travel and sufficient clearance for the noted dimensions of the load. These surveys are usually performed by State Licensed Escort Vehicles. Physical Route Survey. This type of surveys allows the safe travel and sufficient clearance for the noted dimensions of the load. That is usually performed by State Licensed Escort Vehicles. General Conditions; 1. 1’0 on each side of vehicle/load; 2. 1’0 under load clearance; 3. 6 under trailer/semi-trailer clearance; 4. 6 clearance under overhead obstacles. Axle weights and gross vehicle weight must not exceed highway and/or structural weight postings for routes shown. All roads and highways must be shown for route continuity. Utility Assistance. Super Loads needs this Utility Assistance that may require that the carrier asks the assistance of local power and gas companies to temporarily divert services while the load is being transported through certain areas or jurisdictions. This is also an additional cost or Accessorial Charge that will generally be included over and above the original transportation charge. Bonds. Municipalities, State Governments and the Federal Government require surety bonds so that they can cover the cost of possible damage to highways. These can be attained from any insurance company or surety bond company. Links and Resources Specialized Carriers and Rigging Association. The Specialized Carriers and Rigging Association SCand RA has over 1200 members in over 40 countries. The goal of the SCand RA is to help improve the safety and quality of its members and end users of crane rental, heavy lifting equipment and services. http://www.scranet.org Check List and Heavy Haul Action Plan. I must caution any new freight broker or agent prior to moving any over dimensional shipment. I should only let my most experienced agents undertake these loads as you could easily lose more than what you would gain in profit. You must possess a basic knowledge of heavy equipment transport. These loads are transported by specialized carriers with the equipment needed. For over height loads, the escort will measure the distance from the ground to the highest point on the load. Moving over dimensional shipment is very difficult, so I shall caution any new freight broker or agent to be careful. You should let the most experienced agents to do that as you may lose more than what you may profit. These heavy loads shall be transported by specialized carriers with the required equipment, so you should have good knowledge of these heavy equipment. For over height loads, the escort will measure the distance from the ground to the highest point on the load. Steps. 1. Calculate the Length, Width, Height and overall Weight of the commodity you will transport. Know the specific location of pick-up and delivery, and have the details of directions to these locations. 2. Determine the equipment necessary for the load. 3. Make the Riggers the responsibility of the shipper or carrier. You are a freight broker, not a carrier or rigging company. They specialize in this, but you will do bad things if you get involved. 4. Find the carrier that is necessary for the load. Check his references and insurance if you have not hired him before. When you check the rate confirmation and load details make sure this is an All In rate for the load. If this does not happen, you could be in for a ton of Accessorial Charges when the invoice comes for the transport of the freight. 5. Communicate with the trucking company to determine how long it takes to acquire heavy equipment hauling permits, if your load is overweight or oversize. A permit is required for every state through which the load travels. The transporting must take place during daylight hours with exception to a few cities to limit you to nighttime transport because of traffic congestion. You are also set within a restricted number of days because of your permits. 6. Plan the pick-up and delivery dates accordingly, and allow additional time for limited driving time for oversize and overweight loads. HAZMAT Freight. Hazmat - Hazardous Materials. Hazardous Materials, which is also known as HAZMAT and Dangerous Goods, is any liquid, solid, or gas which can be harmful and dangerous for public health, property, or the environment. Each person who transports or offers for transport hazardous materials hazmat., is a hazmat employer or employee. The Federal Hazardous Materials Regulations HMR. [located in Title 49, Code of Federal Regulations 49 CFR. require hazmat employers to train, test, and maintain records of this training for all their hazmat employees. This includes any employee that has responsibility for preparing hazmat for shipment or for transporting the shipment. Freight Brokers Regulations. Hazardous materials are regulated by various Federal agencies including the Department of Trans-portation D O T. The Occupational Safety and Health Administration, OSHA, and The Environmental Protection Agency EPA. Freight Dispatchers and Forwarding Agents are both liable of hazmat for that shipper. Therefore, you must have adequate knowledge of D O T’s HMR to make sure that your operation complies with the HMR. You must carry the same HAZMAT certifications as a carrier if you want to move this type of freight. You should also be sure that the carrier has sufficient Primary Liability coverage for Hazmat. Know Your Shipper. Are hazmat’s shipped? If so, what kind and in what quantity? A broker must know when hazmat is being shipped. This involves more than just examination of documents. Is the material in D O T, U N authorized packages? Verify Hazmat Descriptions Does it match the proper shipping name, hazard class or division, Identification Number, and Packaging Group listed in the Hazardous Material Table HMT. in 172.101? Is there a conflict between the documentation and the package marking? Is there an emergency response telephone number on the shipping paper? Does emergency response information accompany the shipping paper? Advise The Shipper Of Discrepancies. Make a Visual Inspection of Shipments -Is the hazmat was been damaged? In conflict with the documentation? Improperly packaged? Other possible violations? To meet the requirements of the HMR, each hazmat shipment’s packaging, marking, labeling, certification, and docu-ment should be seen and verified. Provide Correct Documentation to the Carrier. You shall know that you are assuming ship-per responsibility for a hazmat shipment that is made by another party. You must rely on the shipper for correct documentation and packaging. When discrepancies are noted, it is your responsibility to be sure it is corrected PRIOR to offering the shipment for movement. The documentation you give is the only information that the carrier receives. Before you hire a carrier to transport a load of hazardous materials, there are two things that you shall check. First, you should always check that the carrier has the ‘’permission’’ to transport HAZMAT. You can do so quickly by entering the carrier’s information into the SAFER system Safety and Fitness Electronic Records System.. This allows you to perform a “snapshot” of the potential motor carrier to be sure they are properly registered with the FMCSA. There are three methods in which to locate carriers in the SAFER database: U S D O T number, MC/MX number or Company Name. Typically, you should ask the carrier for their MC number. Once you have arrived at the carrier’s “snapshot,” you will be looking for confirmation that the carrier has on file either MCS-150A or MCS-150B, depending on the shipment. Do NOT confuse these forms with the standard form MCS-150, which is a Motor Carrier Identification Report Application for U S D O T Number. Attached in Appendix D is a separate PDF that explains in detail the many Hazmat Classifications. Intermodal Freight. Intermodal freight transport means the transportation of freight in an intermodal container or vehicle and using multiple modes of transportation rail, ship, and truck., without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security. It reduces damages and losses, and allows freight to be transported faster. It reduced also costs versus over road trucking that is the key benefit for intra-continental use. Rail Transport. Rail transportation burns less fuel than OTR trucking which means the impact on the environment is significantly less. By taking advantage of an intermodal shipping route, your company not only saves a great deal of money, but does its part to contribute to a green supply chain. Shipping your freight over-the-road O T R is not always the optimal choice for your company. The costs associated with long-distance trucking can be unnecessarily high, especially if you are shipping high volume freight. Intermodal shipping. A combination of OTR trucking and rail transportation for a single shipment can produce significant savings for your company, regardless of freight type or destination. In North America, containers are often shipped by rail in container well cars. These cars resemble flatcars but the newer ones have a container-sized depression in the middle between the bogies or “trucks”. of the car. This depression allows for sufficient clearance to allow two containers to be loaded in the car in a “double stack” arrangement. The newer container cars also are specifi-cally built as a small articulated “unit”, most commonly in components of three or five, whereby two components are connected by a single bogie as opposed to two bogies, one on each car. It is also common in North America to transport semi-trailers on railway flatcars or spine cars, which are an arrangement called “piggyback” or TOFC trailer on flatcar. to distinguish it from container on flatcar COFC.. Some flatcars are designed with collapsible trailer hitches so they can be used for trailer or container service. Such designs allow trailers to be rolled on from one end, though lifting trailers on and off flatcars by specialized loaders is more common. TOFC terminals typically have large areas for storing trailers pending loading or pickup. Equipment of Handling. Handling equipment can be designed by in assisting with transferring containers between rail, road and sea. These can include: Transtainers for transferring containers from sea-going vessels onto either trucks or rail wag-ons. A transtainer extends on rails with a large boom spanning the distance between the ship’s cargo hold and the quay, moving parallel to the ship’s side. Gantry cranes also known as a straddle carrier which is able to straddle rail and road vehicles allowing for quick transfer of containers. A spreader beam moves in several directions allow-ing accurate positioning of the cargo. Grappler Lift which is very similar to a straddle carrier. Reach Stackers are fitted with lifting arms as well as spreader beams and lifts containers to swap bodies or stack containers on top of each other. Intermodal Carriers. - Click link below on pdf to go to their website. Union Pacific Railroad. Pacific Container, Inc. Norfolk Southern Corp. CSX Intermodal Inc. BNSF Railway. D O D. Department of Defense, Military Freight. Military Surface Deployment and Distribution Command Freight Carrier Registration Program. Welcome to the Military Surface Deployment and Distribution Command’s SDDC. Freight Carrier Registration Program FCRP.. In order to transport DOD freight, carriers must comply with the requirements of the FCRP as well as requirements of Department of Transportation Title 49, Code of Federal Regulations DOT 49 CFR. and SDDC Freight Traffic Rules Publications MFTRP.. The link for MFTRP is http://www.sddc.army.mil/sddc/Content/Pub/8188/MFTRP1C.pdf. You will need a performance certificate in order to transfer military freight, or become an agent for an approved broker who is already established with the DOD. However, these loads must be tendered under the authority of that broker. The performance certificate for DOD freight is sepa-rate from and in addition to the surety bond necessary to obtain your freight broker authority. These are two completely different ensures prior to approval, carriers must complete the follow-ing: Note: in these instructions, “carrier” refers to all Transportation Service Providers.: 1. All carriers want to do business with DOD must have a valid Standard Carrier Alpha Code SCAC.. The SCAC. is a unique two-to-four letter code issued through the National Motor Freight Traffic Association NMFTA. that is used in order to identify transportation com-panies. If you do not have a SCAC, use website www.nmfta.org or contact NMFTA at 2200 Mill Road, Alexandria, VA 22314, Telephone number 703-838-1831. Note: Each mode of trans-portation Motor, air, barge, ocean, pipeline and rail. requires a separate SCAC for filing tenders and submitting spot bid quotes. 2. US Bank – All companies must have an agreement with US Bank and be Power Track cer-tified in order to receive electronic payment for transportation services. Power Track is available on the Internet at: www.usbank.com/powertrack or by contacting US Bank Power Track, 1010 South Seventh St., Minneapolis, MN 55415, 800. 417-1844. 3. Complete the Carrier Registration Form https://akita.eta.sddc.army.mil/ccp/jsp/CCPScac. jsp and then click the SUBMIT button. You must fill Power Track certification first. SDDC will review your registration form and then send an e-mail notification of your status within three 3. working days. At this time you are responsible for obtaining your perfor-mance bond as outlined below in item #4. The amount of the bond is depending on how you register and whether you’re a small or large business. 4. Bond Performance. Instruct your bond Surety Company to forward your bond informa-tion only to: mtfecarrierregistration@sddc.army.mil by email. The subject line of the email must contain your company name and SCAC; in the body, you should provide the bond number, amount and effective date; Surety Company name, agent’s name; address and telephone number. SDDC does not require the original or a copy of the bond form. The requests of bond cancellation must be sent to the same e-mail address. Once all requirements are ready, SDDC will send an e-mail notification of your approval. In this approval you will receive instructions for obtaining an Electronic Transportation Acquisition ETA. password that will allow you access to DOD transportation programs including tutorials and on-line training for help with Tender Entry and Spot Bid on the Web. For questions on training: e-mail: gfm-training@sddc.army.mil Additionally, upon approval, contact by e-mail, mtfenegotiations@sddc.army.mil. SDDC’s Ne-gotiations Group and request to be included on their e-mailed solicitations for volume moves and special services. Remember to include your SCAC in all correspondence. Performance Bond. Carriers will be required to submit a Performance Bond. The cost of the bond is based on the size of your company and the number of states you intend to serve. Large companies may se-lect 1.state for bond that may cost you about $25,000; 2 to 3 states -$50,000; 4 or more states -$100,000. Carriers registered with the small Business Administration SBA., http://pro-net.sba.gov/, may se-lect up to 3 states with a Performance Bond of $25,000, up to10 states with a Performance Bond of $50,000 and 11 or more states for $100,000. Note: Movements must begin and end in one of the selected states. Carriers that have conducted business in their own name with DOD for 3 years or more must submit a Performance Bond with 2.5% of their total DOD revenue for the previous 12 months, not to exceed $100,000 and not less than $25,000. Bulk fuel carriers must pay $25,000 Performance Bond. The bond amount is set at $100,000 for Surface Freight Forwarders, Shipper Agents, Brokers, and Air Freight Forwarders due to the volume of traffic handled by these modes. Local drayage, commercial zone, barge, rail, sealift and pipeline carriers are free from the bond requirements. The Performance Bond secures performance and fulfillment of carrier obligations that ensures that the DOD freight was delivered. It will cover any instance where a carrier cannot or will not deliver DOD freight tendered to them. This includes default, abandoned shipments, and bank-ruptcy by the carrier. The bond will not be utilized for operational problems such as late pickup or delivery, excessive transit times, refusals, no shows, improper/inadequate equipment or claims for lost or damaged cargo. Here is a listing of approved Surety companies can be found at: http://www.fms.treas.gov/c570/index.html. Under “quick links” select “Treasury Listing of Approved Sureties”. http://www.sddc.army.mil/sddc/Content/Pub/14712/CarrierRegInstructions.pdf Note: Trust funds are not accepted instead off of the bond. Please be aware that you cannot conduct business with the government if you or your company is on the Excluded Parties List EPL.. The EPL is a list of contractors who have been debarred, sus-pended or declared ineligible by ANY government agency. If you or your company is on that list, you will be ineligible to work with the Department of Defense. Operating Authority. Carrier agrees to maintain valid operating certificates for its scope of operations. USDOT# is a mandatory field on the registration form. Your company’s SCAC will automatically populate your DOT/MC number. You will be responsible to fill in your operating identification number in case you are not operating as a motor carrier. The below websites will assist: Motor. www.safersys.org. Pipeline. http://ops.dot.gov/index.htm. Barge. www.fmc.gov. Air. http://nasdac.faa.gov/main.htm. Rail. http://safetydata.fra.dot.gov/officeofsafety. Inspections. Carrier agrees to permit unannounced safety and security inspections of its facilities, terminals, employees, and operational procedures by DOD civilian, military personnel, or DOD contract em-ployees. Furthermore carrier agrees to have visitor control procedures in place to verify individu-als requesting access to or requesting information of DOD shipments. The verification processes can be made by contacting SDDC’s Hotline at 800-526-1465. Carrier agrees not to reveal any information to unauthorized persons concerning the nature, kind, quan-tity, destination, consignee, or routing of any protected commodities tendered to them. Transportation Protective Services, TPS, and Arms, Ammunition and Explosives: The carriers must be approved of not less than twelve consecutive months and have satisfactory performance in order to transport materials designated by DOD as protected or sensitive that require a TPS. Additionally, a “satisfactory” safety rating must be on file and maintained with the Federal High-way Administration, Department of Transportation, and/or the appropriate state agency or com-mission in the case of intrastate transportation. Some safety ratings are not accepted such as “unsatisfactory”, “conditional”, “insufficient infor-mation” or “not rated” or “none”. Keep into consideration that Brokers, Freight Forwarders, Shipper Agents and Logistic Companies are restricted from handling shipments requiring a TPS. Trading Partner Agreement. Following approval by SDDC, carrier should sign a Trading Partner Agreement TPA. in order to send or receive electronic data interchange EDI. transactions with any DOD system. You can ob-tain a copy of the TPA from: http://www.sddc.army.mil . Click on Freight Cargo, then New Visitor, then Carrier Qualification and then Trading Partner Guide. For assistance, please call 703-428-2933. We appreciate your interest in providing freight transportation services to the DOD and if we can be of further assistance call 757.878-8742 or 757. 878-8702. EDI -Electronic Data Interchange. Electronic Data Interchange EDI. is the computer-to-computer exchange of business information using a public standard format. EDI is a central part of Electronic Commerce EC, as it enables faster electronic exchange of information between business partners, it is cheaper and more accurately than is possible using paper-based systems. EDI is used by Nearly fifty thousand private company that operates in the United States are currently use EDI. Companies such as Federal Express, Eastman Kodak, American Airlines, Nike, Staples, Nations-Bank, JC Penney, and Prudential Insurance to name but a few. EDI is widely used in various fields including manufacturing, shipping, warehousing, utilities, pharmaceuticals, construction, petroleum, metals, food processing, banking, insurance, retailing, government, health care, and textiles among other industries. According to a recent study, the number of companies using EDI is expected to quadruple within the next six years. EDI’s Origins. EC/EDI wasn’t invented by the Government; simply it is taking advantage of an established tech-nology that has been widely used in the private sector for the last few decades. EDI first usage is dated back to more than twenty years ago as it was used in the transportation industry by that time. It was used by ocean, motor, air, and rail carriers and the associated shippers, brokers, customs, freight forwarders, and bankers. The development of the first set of industry EDI standards was done by the Transportation Data Coordinating Committee TDCC. and consisted of forty-five transaction sets for the transportation industry. ANSI X12 standards, the system currently used, were developed later and are based upon the TDCC syntax and format. Military Freight. Once all the required procedures for moving Department of Defense freight are performed then you will need to do the following before you can take an action of moving any freight as a freight broker or trucking company. First of all you will need to “Propose Your Freight Rates” for Military Transportation Officers so they can view and contact you for moving loads. To learn how to submit these rates according to Department of Defense standards you will need to download the following, Publication of Revi-sion and Consolidation of Military Freight Traffic Rules Publications MFTRP. 1C-R Motor., 10 Rail., 30 Barge., 6A Pipeline., 4A Tank Truck., Military Standard Tender Instruction Publication MSTIP. 364D, Spot Bid Business Rules, and SDDC Military Class Rate Publication No. 100A to a Consolidation of Procurement Requirements for the Purchase of Commercial Transportation Ser-vices into the Military Freight Traffic Unified Rules Publication MFTURP. No. 1. You can access it here: http://www.sddc.army.mil/sddc/Content/Pub/12706/364d.pdf this pub-lication will guide you on how to successfully submit your freight rates to the Department of De-fense and also provide general information to answer your questions. The publication provides a listing of commodity codes necessary to propose your rates with. 1. As soon as you freight has been tendered to the Department of Defense you are ready to go. You will then “Log In” with your User Name and Password as provided by the GFM Administrator. 2. Once you log into the system on the SDDC website you will then scroll to the bottom of the screen and select “CAVS” and then choose the option “Costed Shipment Query”. Then enter your SCAC code, Date of Movement and, Trailer Type to view available freight. 3. Now it is time to get freight. If you see a load that suits your criteria for required lane and rate criteria go ahead and contact the Transportation Officer to see if the load is available. If it is and your tender is competitive, he will then award you the load. 4. You will then have to provide the Transportation Officer your Driver Information, Truck and Trailer number and SCAC Code. 5. You will then give the Transportation Officer and Email address or FAX number so he can send you a “CBL” or Certified Bill of Lading, which contains the information you will need to create your rate confirmation sheet for the carrier. 6. Ask the “Transportation Officer” to set your company as a “Trading Partner” within his perspective base. You will just need to provide him your company’s information again such as billing info and “SCAC” code and the process will be completed once he enters it into the SDDC system. 7. Once your load has delivered and you have a “Signed CBL”, you can now bill it to “Pow-erTrack”. You will need the “GBLOC ID” codes from the Base of Origin and Destination. Once all this information has been gathered simply submit the information requested and payment will be processed if all required information has been met. Attached in Appendix E is a list of 2010 Intercoms. Cross Border. Canadian Shipping Cross Border. If you need to find a motor carrier that has Canadian Authority to transport commodities and goods, you will move freight into Canada You will also need documentation from Customs Brokers of the load you are carrying. Canadian Officials will also require proper PARS documentation. I have provided information about it below. Pre-Arrival Review System PARS. The Pre-Arrival Review System PARS. is a Canada Border Services Agency CBSA. formerly the Canada Customs Revenue Agency CCRA.. border cargo release mechanism for those importers with RMD Release on Minimum Documentation. privileges that expedites the release of com-mercial shipments to Canada. The Canadian PARS system is as the same as the U.S. Pre-Arrival Processing System PAPS. system, but where PAPS applies to shipments from Canada to the U.S., PARS applies to shipments from the U.S. to Canada. The main document for PARS is a bar-coded cargo control number, which the carrier or U.S. ex-porter applies to the top right-hand corner of the original CBSA invoice for each shipment. All other required documents must also be provided: Certificates. of origin. Invoices. Shippers export declarations, etc. The Pars can handle goods that require permits or certificates. A copy of the complete set of documents, including the bill of bar-coded label, are sent to the importer or broker Canadian by fax before the arrival of the shipment in Canada. Importer or broker then submits a request for import CBSA. “Pars” must be clearly laid down by the importer or customs broker to release pack-ages on the Pars. When the documentation is received by the CBSA, a Customs officer enters data into the auto-mated CBSA computer system. A recommendation is made in the Customs Commercial System CCS., which will remain in force for a limited period of time. The carrier slash driver offers the original version of the bar-coded release documentation to a CBSA inspector, who scans the bar code in an automated system Canada Border Services Agencies, When the arrival of a shipment at the point of import. The system displays the status of the ship-ment as “release” or “review”. If the status of the shipment is “to release,” Inspector of CCRA releases goods to the driver. Customs inspector date stamp copies of the invoice and return the stamped invoice photocopy to the carrier as proof of mine clearance. If the case “to review”, and will be referred to the cargo inspector who will follow the normal examination procedures For more information, go to the Canada Border Services Agency Web site at: www.cbsa-asfc.gc.ca The Profit. Developing a relationship with your carrier base will lead into a better understanding to which carriers will move your loads for the rates you want. When moving a load, a carrier looks at the lane in which the load is traveling. For instance if you have a load going from California to Wis-consin and you carrier is from Illinois, the carrier is more likely to give you a better rate to move the load because it is traveling in the general direction of his yard. This is known as a backhaul. One of the main benefits of having relationship with your carrier is that you are going to be able to create a separate income stream for your brokerage. If you know where your carriers are lo-cated and loads become available from other brokers, you can enter into a co-broker agreement with them and simply dispatch the carrier to the load. Freight will find you as long as you have the trucks, it is extremely important to have a firm hold on where your favorite carriers equipment is located at all times. Lane Management. Having a good knowledge of lane rates and its frequent changes on loads is not less impor-tant than knowing the carrier in negotiating the freight rate for the line haul. Lane rates are determined by fuel rates, equipment availability, seasonal changes and backhauls. Using the load boards and their provided tools such as Carrier Depot will allow you to simply input the pertinent data for the load and they will generate a rate for that lane based upon current market trends. Market Price and Carrier Rate Negotiations. The Price will be paid… A shipper has a load of products leaving Salinas, CA in June, and has 6. pickup and 3. delivery in Jessup, MD. Shipper provides you with a marginal rate in order to get the load moved and you are getting no action from carriers for the load. There are no reasons with this load that is because of the headaches involved. June is the busy season for produce in Salinas, CA and Jessup, MD is a very hard to get a backhaul. Another problem is the amount of pickups and deliveries on the load. When lanes are tight, such as the peak of the produce season, carriers become picky about the loads they take. Let’s say your shipper is offering you a rate on this load of $6000.00. This is an unrealistic rate as during this time of year it is not unusual for the carrier to command a rate of $2.60 per mile. Salinas, CA -Jessup, MD is 2869 practical miles, so if you do your math you will come up with a general rate of $7459.40. There are other variables to take into consideration, such as pickup and delivery but. The overall rate of extra points is $50.00 for each stop, so you’re looking at secondary charges of $400.00 to stop. Carrier will also probably ask for fees for this load because of a headache and I would like to think an extra few hundred dollars at least. So the rate you should get closer to the charger with it will be $8,200.00. After spending some time talking with the carrier and you can properly get him to reduce the rate of a mile in about $ 2.35. This would allow you to make a profit potential $717.25 on this load. This is lower than the 10% that I like to average, but still a good margin because of high gross on the load. You will earn every penny on this load because of all pickup and delivery, but you will work almost as hard as the carrier. Final Settlements To Carriers and Advances. Fuel Advances. Refers to advance partial payments, a fuel advance is a portion of the payment amount given to the driver in the form of a T-Check, Com Check, or Wire Transfer. This advance is given only when you have received verifiable proof that the load has been picked up. To verify this infor-mation ask the driver to fax in the signed BOL’s or scanned EDI copies to your company. Usually amount given for a fuel advance is 35%-40% of the gross amount of the load. ComData.-http://www.comdata.com Comdata offers a simple, cost-effective alternative to paper checks for distributing funds to both banked and unbanked employees. It is very useful to pay employees with the Comdata Card or Security Numbers, which provides the convenience and flexibility of electronic payroll in a secure, card-based solution without the need for the cardholder to have a bank account. T-Chek.- http://www.tchek.com T-Chek Systems, Inc. is a leading provider of payment and information services to transportation-related organizations. Whether you are an owner operator, a small, medium, or large carrier, a truck stop, c-store, or freight broker, T-Chek can help you measure your business performance, make informed decisions, and manage your daily operations. T-Chek’s products and services give you the productivity, purchasing control, negotiating power, and information management you need to increase your bottom line. Net 30. Net 30 is another alternative, which is a form of trade credit which specifies payment is expected to be received in full 30 days after the goods are delivered. Net 30 terms are often coupled with a credit for early payment; e.g. the notation “2% 10, net 30” indicates that a 2% discount is provided if payment is received within 10 days of the delivery of goods, and that full payment is expected within 30 days. Final Payments. Final payments to carriers should only be made after all issues on the load have been resolved. There are many factor that should be kept into consideration before issuing payments as follows: Are the BOL’s clean and free of discrepancies? Are there any claims against the load? Are all lumper receipts turned in? Are all weight tickets turned in? Did the carrier use pallets from the shipper and was he charged for them? Have all fuel advances been subtracted from the balance of payment? Co-Brokering and Double Brokering. Double brokering contrary to popular belief is completely legal. Unfortunately, a number of transportation brokers have received improper training concerning this issue. The majority of transportation brokers will not knowingly double broker a load unless a co-broker agreement is on file. Double brokering may be prohibited by the originating shipper. It is best to establish the terms and conditions with all parties before co-brokering or double brokering any freight. Here are the drawbacks of double brokering or co-brokering a load. You have no control over the actions of the other broker. For example, you pay the second broker for the line haul, but he fails to pay the carrier. Now the carrier is seeking compensa-tion from your brokerage and shipper. Although your payment has been made to the second broker, the carrier of record listed on the “Bill Of Lading” has not been paid by the second bro-ker. The carrier responsible for the line haul can place a lien on the freight until compensated or he can file against your bond. Your brokerage may be liable for any damages incurred during the load if a carrier is in an ac-cident. This happens when the second broker uses carriers that are unreliable, have expired insurance, or authorities or faulty equipment. What should I do if I have been double brokered? Here are the steps to take if you have ever been the victim of double brokering. Believe me, this is rampant in the industry and it will happen, it is best to know the steps to take. First and foremost, it is very important to have this clearly spelled out in your carrier broker agreement and also your rate confirmation that if a load has been double brokered the rate for the load is null and void. If you use the carrier broker agreement that is contained within our manual we have addressed this issue. If you suspect that your load has been double brokered, contact the consignee, have the receiver of the load place the information of the carrier responsible for the line haul on the original bill of lading when he unloads. He will need to provide the name of the carrier, MC authority number, and also the driver’s signature. If a carrier is legally leased to another company, he is required to have carrier paperwork to that effect in his truck and also signage should be displayed on the cab and trailer. Once you have taken these steps, you then re-negotiate the rate of the load with the carrier responsible for the line haul. You are not responsible to pay this carrier, but it is a good way to build a loyal carrier following and also provide your shipper with secondary coverage against a possible repercussions. Once you have began negotiations of the rate with the carrier that actually moved the freight. Follow the same steps as setting up a new carrier, by having him complete a “Set Up” pack-age and signing a new rate confirmation sheet, carrier broker agreement, and also lien waiver against the load. Fuel Surcharges. Do They Go To The Carrier? An additional charge imposed by motor carriers due to the increasing price for diesel. The charge is a percent added to each load based upon the U.S. National Average Diesel Fuel Index published weekly by the U.S. Department of Energy. Fuel surcharges will fluctuate accordingly as diesel prices raise or lower. Hidden Profit. A Fuel Surcharge FSC. is a great way to make additional profits for your brokerage. When a shipper is providing you with a freight rate for the line haul, occasionally they will include a fuel surcharge in addition to the base rate. If the base rate is a decent rate for the haul, I usually just pocket the fuel surcharge on the load. It is a great way to increase the gross profit. I have found that most major companies will include a fuel surcharge, the smaller companies however will not. Nearly every dispatcher will ask you if there is a fuel surcharge on the load. I will most generally give them a flat rate, depending on how hard the load is to cover in a specific lane. Links. Energy Information Administration -http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp . This is the website where the Department of Energy publishes weekly diesel prices across the country. Shippers will use this data on basing the rate of the fuel surcharge. Ancillary Ways To Make Money. In addition to being a freight broker agent, you can also apply your trade to major trucking companies as a truck agent slash dispatcher. The role is basically the same with exception to the fact that you have access to many more trucks that are not available to the normal freight broker agent. How It Works. As a truck agent you will be paid a commission of typically 8.5% to 9.0% for loading trucks in there carrier group many carrier groups offer intranet truck boards that you can have access to. You will simply match available freight to their fleet and get paid a commission for doing so. Independent Truck Dispatcher. An independent truck dispatcher works the same as a truck agent with exception to the fact that you can represent multiple trucking entities at once. Owner Operators are independently owned trucking companies that often do not have dispatchers to keep them loaded. This is where you can get paid. They are in need of your services to find freight and to keep them rolling. In addition to finding freight for their company, you will also be in charge of communication with the shipper, invoicing the load and also other miscellaneous services that the driver might need. You will find loads on internet load boards from shippers, freight brokers and logistics companies. Since you represent the carrier directly you are not double brokering the freight. You simply trans-fer all of the Owner Operator’s paperwork for him, sign the Rate Confirmation on his behalf and transfer the load details to him. Once he has accepted the load and it has been delivered you will bill him for a previously agreed upon percentage.