by logisticsplus | Dec 2, 2015 | News

LTL shipping refers to the process of transporting relatively small freight shipments that weigh anywhere between 150 to 10,000 lbs. Unlike Full Truck Load (FTL) prices, which are usually based on a more simplistic rate per mile system, LTL rates are calculated from several variable factors. Knowing these factors can be helpful in setting more realistic expectations and increasing long-term savings. Here are some factors used to determine LTL freight shipping rates:
Weight & Density
These two basic aspects of your shipment greatly determine how much you will be charged. Freight companies generally rate shipments at the lowest weight category and rate, meaning that the more a shipment weighs the less it costs per hundred pounds. Weight is also used to calculate density, and is one of the main components used to determine the classification of the shipment, which in turn affects the final rate. Logistics Plus provides a helpful, online freight density calculator if you want to quickly know the density of your shipment.
Freight Classification
The National Motor Freight Traffic Association (NMFTA) has established “freight classes” which are used to classify commodities for rating purposes. Classifications are based on the products’ density, stow-ability, value, handling and liability. Each commodity is categorized into one of 18 different freight classifications. Generally, the lower the freight class, the more dense the commodity, and, therefore, the lower the rate per hundred pounds. You can read more about freight classification on the Logistics Plus website.
Origin and Destination
Shipments that need to travel farther usually have higher rates as well. Shippers should find out which LTL carriers serve their intended destination to avoid interlining; a practice where one LTL carrier resorts to transferring its shipments to other carriers due to their limited reach. Interline shipments often tend to cost more and are more susceptible to loss or damage. Also shipments that require additional time or special equipment at time of pickup or delivery may also incur additional fees (called “accessorial fees” as discussed below). Examples include pickups or deliveries to residential locations, convention centers, construction sites, airports, wharfs, or container freight stations.
Base Rates
Ever since the industry was deregulated in the early 1980s, LTL carriers set their own base rates (i.e.,”list price”) from which discounts can be negotiated. Base rates can vary by company and by lane, making true apples-to-apples rate comparisons very difficult unless you know what you are doing. Logistics Plus provides shippers with the ability to request a free freight analysis if you’re unsure on how to compare rates to ensure you’re getting the best possible deal.
Absolute Minimum Charges
These are the minimum prices charged by LTL carriers, below which they will not go any lower – no matter what discounts may have been negotiated. The absolute minimum charge (MC) helps ensure carriers cover all of their fixed costs on a particular shipment or lane. If a high percentage of your shipments are small, or move across short distances, absolute minimum charges may play an important factor in your overall transportation spend.
Accessorial Fees
Accessorial fees apply when additional services are required to handle your shipment – those above and beyond the typical dock-to-dock pickup and delivery service most LTL carriers provide. Common examples include liftgate service, weekend delivery, and pickup or delivery at special origin and destination locations (as noted above). Fuel surcharges are the most common accessorial fee that LTL carriers charge since they are typically included on every shipment. Often times specific accessorial charges can be waived or reduced, so it’s important to understand how these fees impact your overall expenses and then include them in your negotiations.
Negotiating Rates
Shippers can save money on their LTL freight spend by negotiating base rates, discounts, and minimum charges with their LTL carriers. Alternatively, a professional freight management company, such as Logistics Plus, can negotiate with LTL carriers on your behalf. Top freight management companies are able to leverage their collective buying clout, analytical expertise, and carrier relationships to provide even greater savings to shippers, particularly those that are small or mid-sized companies.
If you feel like you’re spending too much on LTL freight, or if you lack the resources or expertise to negotiate your own rates, please consider working with Logistics Plus. As a top 50 freight brokerage firm, our LTL experts help hundreds of companies save on their LTL shipping every day. As mentioned earlier, we can provide you with a no-obligation freight analysis for multiple shipments, or we can help you get a quick and accurate freight quote for a single shipment.


by Scott Frederick | Dec 1, 2015 | News
FOR IMMEDIATE RELEASE
Logistics Plus Dallas/Fort Worth Warehouse Receives Foreign Trade Zone Activation
The 180,000 Square Foot Warehouse Also Boasts the Biggest Forklift in Northern Texas

The Logistics Plus DFW Warehouse
ERIE, Pa. (December 1 , 2015) — Logistics Plus Inc., a worldwide provider of transportation, logistics and supply chain solutions, is proud to announce that it has filed and secured activated status from U.S. Customs & Border Protection (CBP) for a general purpose Foreign Trade Zone (FTZ) at its Dallas/Fort Worth (DFW), Texas warehouse located at 920 Westport Parkway, Haslet, TX 76177.
As previously announced, Logistics Plus moved into the new facility in early October. The DFW warehouse has 180,000 square feet of storage space and a pneumatic tire forklift that has 62,000 pounds of lifting capacity – giving it the largest operating forklift in the Dallas/Fort Worth metro area and surrounding region. The move to the larger facility and the activation of FTZ protocols were partly driven by a contract Logistics Plus was awarded in July to provide consignment warehousing services to GE Transportation, a division of General Electric, and its suppliers.

The Biggest Forklift in Northern Texas!
“We were given a very tight timeline to move into the new DFW warehouse and have FTZ status vetted and activated by CBP before the end of the year,” said Jim Berlin, founder and CEO for Logistics Plus. “Because of a tremendous team effort, we were able to successfully move all inventory from the old facility to the new one in just four days, test and implement the required FTZ software protocols, and work with CBP officials to get the FTZ status activated ahead of schedule.”
Thousands of U.S. businesses have discovered that Foreign Trade Zone utilization can prove to be an incredibly effective tool to help develop new markets while systematically increasing profitability from both their existing operations and international trade relationships. CBP has declared FTZs to be the best practice for compliant management of global supply chains, coordinated logistics, and integrated manufacturing operations. FTZs enable importers and exporters to consistently benefit from this CBP-privileged status; offering duty savings, reduced transportation and insurance costs, and the flexibility to do in America, what is too often done off-shore. If the finished products are exported from an FTZ, the original Customs duties are reduced.
To learn more about the Logistics Plus DFW Warehouse, please visit https://www.logisticsplus.com/DFW
About Logistics Plus Inc.
Logistics Plus Inc. provides freight transportation, warehousing, global logistics, and supply chain management solutions through a worldwide network of talented and caring professionals. Founded in Erie, PA by local entrepreneur, Jim Berlin, 20 years ago, Logistics Plus has been repeatedly recognized as one of the fastest-growing transportation and logistics companies in the country. With a strong passion for excellence, its 350+ employees put the “Plus” in logistics by doing the big things properly, and the countless little things, that together ensure complete customer satisfaction and success.
The Logistics Plus® network includes offices located in Erie, PA; Fresno, CA; Los Angeles, CA; San Francisco, CA; Evansville, IN; Detroit, MI; Kansas City, MO; Charlotte, NC; Lexington, NC; Buffalo, NY; Cleveland, OH; Charleston, SC; Greenville, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Laredo, TX; Houston, TX; Bahrain; Belgium; Canada; Chile; China; Colombia; Egypt; France; Germany; India; Indonesia; Kazakhstan; Libya; Mexico; Poland; Saudi Arabia; Turkey; and UAE; with additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.
Media Contact:
Scott G. Frederick
Vice President, Marketing
Logistics Plus Inc.
(814) 240-6881
scott.frederick@logisticsplus.com

by Scott Frederick | Dec 1, 2015 | News
Energy News from around the World
Today Logistics Plus Turkey sent its November issue of LP Turkey Energy News to customers and other interested parties throughout the region. Logistics Plus has extensive expertise providing transportation and logistics solutions to companies in the Energy & Fuel Industry.
The new issue is pictured below. Click here to read the online version.

by Scott Frederick | Nov 30, 2015 | News
Erie’s new Foreign Trade Zone aims to boost area business
By KARA MURPHY Contributing Writer November 29, 2015 06:19 AM
ERIE, Pa. — The warehouse looks like any other. It has concrete floors and high ceilings. It’s chilly. Dust motes circle in slices of sunlight. But this space is unique. In fact, there are only about 230 other places like it in the entire nation. Part of this bare-bones warehouse — the former Penn-Brass building on Erie International Airport property at 3837 W. 20th St. — is now an activated Foreign Trade Zone, or FTZ.
Click here to read the rest of the article on GoErie.com, including interview comments by Gretchen Blough, customs brokerage manager for Logistics Plus.
by logisticsplus | Nov 19, 2015 | News
As we announced last month, Jim Berlin/Logistics Plus and LP Linguistic Solutions were both nominated for Disrupt Erie Awards by Innovation Collaborative. Winners were announced Wednesday night at Presque Isle Downs & Casino. As reported by Erie Times-News earlier this morning, the following winners were named:
- Creative Entrepreneur of the Year: Margo Wolfe and Mark Tanenbaum, Performing Artists’ Collective Alliance.
- Erie’s Hero Award: O.G. Crawford and H.O. Hirt, founders of Erie Insurance.
- Social Impact Entrepreneur of the Year: Jim Berlin, founder of Logistics Plus.
- Startup Champion of the Year: Linda Stevenson, chairwoman of the Athena PowerLink program.
- Startup of the Year: Erie Ale Works.
- People’s Choice Award: Iron Empire Clothing.
Companies nominated for awards are driving change within the community and within their respective industries, and are making a lasting economic impact and creating lasting opportunities. The Social Impact Entrepreneur of the Year Award was based on a founder’s work that has had the most positive impact on the community’s well-being over the past year. All winners were chosen (50%) based on public input and (50%) based on the specific criteria listed on the nomination forms. Final judging was performed by Mr. Thom Ruhe and the Innovation Collaborative Board of Directors.
Congratulations to all of the winners in Innovation Collaborative’s first-ever Disrupt Erie Awards!

by logisticsplus | Nov 16, 2015 | News
According to a U.S. Department of Commerce report, over 185,000 U.S. companies imported foreign goods in 2012, an increase of more than 10 percent from 2009. The majority of these businesses were small or medium-sized companies that may, in fact, lack the necessary resources to be a successful importer. If your business imports – or is planning to import – foreign goods, here are ten (10) keys to successfully navigating the complex waters of international trade.
- Get a Formal Contract
Before purchasing and importing foreign products, make sure you issue a formal written document that includes all of the significant issues to the buyer and seller, such as product acceptance, warranties and dispute resolution procedures. Otherwise, you will expose your business to significant risks which may be very difficult to control
- Familiarize Yourself with U.S Customs Policies & Procedures
It is essential that you fully understand whether or not importing your product will require a license or permit. Although the U.S Customs and Border Protection (CBP) does not generally require importers to have a license or permit, there are other agencies that may require one; examples include the FDA, USDA and the ATF. Furthermore, there are certain goods that may be subject to specific requirements with regards to their testing, marketing, certification, labeling, packaging and documentation. To get more acquainted with these requirements, you can visit www.cbp.gov (or see key #10 below).
- Make Sure You Understand Incoterms
This may be a no-brainer, but it is always important to understand the deal in which you are getting yourself. Suppliers are obliged to submit a term of sale alongside each quotation submission. It is your responsibility to fully understand the costs, rights and obligations included in these Incoterms. This will also help you estimate your costs more accurately (if you’re confused about Incoterms, see key #10 below).
- Classify Your Products Properly
The harmonized tariff schedule classification (HTS) of a product is what determines the rate of duty applied to it. Therefore, it is very important that you assign the correct classification to your products. This will not only reduce your duties, but will also ensure you don’t face additional obstacles when your goods enter the United States. To learn more about this process, talk to someone familiar with HTS classifications (or see key #10 below).
- Consider Preferential Duty Programs
There are many preferential duty programs out there that can help you avoid certain duties and reduce your transaction costs. The Generalized System of Preferences, in addition to free trade agreements that the U.S. has in force with 20 countries, can give you a competitive advantage in the global market place (or see key #10 below).
- Research Import Quota Requirements
These refer to quotas that limit the amount of imported commodities into the United States within a specified amount of time. Some quotas allow goods to continue entering the United States after the limit has been reached but at a higher rate of duty, these are called tariff rate quotas (If you’re not sure if your product has an import quota, then see key #10 below).
- Find a Reliable and Legitimate Foreign Seller
Before making any final transactions, you need to ensure that the seller which you are dealing with is reliable. This is when you should conduct extensive research in terms of their reputation, financial status, and overall history. Doing business with unfamiliar suppliers can be risky, so you have to always be prepared.
- Pick the Right Insurance Coverage
There are many things that could happen to your goods on their way to their final destination – from severe weather conditions to rough handling by carriers, you can never be over-prepared. It is, therefore, very crucial that you accurately determine the type, amount, and extent of insurance coverage that you may need. You should also know who will be responsible for insuring your goods when they are not in your possession. Always make sure you have proof of insurance from your sellers, and never only take their word for it.
- Keep Records of Everything
U.S. CBP laws require importers to keep records of all documents relating to imports for a period of five years. These records may be inspected at any time in order to check your compliance status to all U.S. CBP laws (if you’re not sure what documents to keep, see key #10 below).
- Hire an Experienced Customs Broker!
If you’re new to importing – or even if you’re not – you may want to consider hiring a freight forwarder that is also a professional customs broker, like Logistics Plus (LP), to help you with all of your importing procedures. The LP Customs Broker Solutions team can help simplify the process, and ensure you abide by all rules and regulations, thus minimizing any potential future problems. If you have any questions specific to import customs rules or duties, feel free to contact Gretchen Blough, our Customs Brokerage Manager, at gretchen.blough@logisticsplus.com.

If you’re ready to import a shipment or need help with an international air or international ocean freight quote, please send an email to imports@logisticsplus.com (or click the button below).
