Archive for LTL

5 Reasons Why LTL Rates Are Changing & What to Expect

If you’ve been in transportation or logistics for any length of time, you already know that nothing stays the same for long. Recent less than truckload (LTL) rates and capacity levels have been below the historical levels we saw from 2005-2010. But that could change—and it’s already started. Most general rate increases (GRIs) happened late last fall. They’re typically on an annual cycle, so we expected to see them come this fall. But they’re here […]

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Guest Commentary: Time for a New Class of Freight Rating

“I want to know the real, total cost of my shipments before I make them.” Over the years, we have talked to a lot of shippers and logistics companies who are in the “rating gap.” These shippers don’t need a full TMS, which includes sophisticated planning and execution, but clearly require a highly-functional contract management system or service to determine their expected real total freight cost. What is the Gap? Here is a diagram of […]

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Guest Commentary: Modern Transportation Management Systems Make LTL Neutral Rate Bases Obsolete

Long ago, a LTL (less-than truckload) neutral rate base (NRB) was promoted as way for shippers to more easily compare shipping costs between carriers because carrier contracts and the actual rating process were both complex. A NRB was seen as a compromise based on simplicity, but neither the business interests of the shipper or carrier were optimized. I believe, however, that neutral rate bases have outlived their purpose. Today, modern transportation management systems (TMS), with […]

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Guest Commentary: Logistics Flow Control: How to Control What You Don’t Control

Who would think that the movie Forrest Gump would provide a great analogy for logistics operations? Unfortunately, the movie quote “Life is like a box of chocolates. You never know what you’re gonna get” applies to the inbound operations of too many retail and distribution companies. Despite the best laid plans using concepts such as collaborative planning, the flow of products from suppliers too often fails to match the requested quantities or delivery dates. Our […]

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