LTL Shipping: Overlength, Linear Foot, and Cubic Capacity Rules

LTL Shipping: Overlength, Linear Foot, and Cubic Capacity Rules

measurement-1476919_640Less-than-truckload (LTL) shipping can be somewhat complex and confusing. It is important for shippers to provide their LTL carrier – or 3PL/broker – with accurate bill of lading (BOL) information to avoid unexpected charges. Sometimes those surprises can come in the form of fees associated with overlength, linear foot, cubic capacity rules. The following is a quick primer regarding each of these three rules.

Overlength Rules (also called Extreme Length or Over Dimension)

Every LTL carrier has some form of overlength rules. For most carriers, those rules begin on any shipment containing one piece or item that is over 96 inches. For example (as shown below), UPS Freight has the following overlength fees: $90 for 96-143”; $125 for 144-239”; and $195 for 240-312”.

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If you have two overlength items in the same shipment, most LTL carriers will only apply this fee once, but some carriers (such as R+L Carriers) will apply it for each overlength item. Overlength fees are applied as additions to the standard LTL pricing.

Linear Foot Rules

Most carriers no longer have linear foot rules (they instead rely upon their cubic capacity rules), but there are some that still have them in place. A linear foot rule will apply when the length of an entire shipment exceeds a maximum specified length. For example (as shown below), if a shipment is tendered to Dayton Freight that exceeds 15 linear feet with a density that is less than 22.5 PCF, it will be rated as if it was 1,250 pounds per linear foot instead of the BOL weight with standard LTL pricing.

Dayton-Freight-Linear-Foot-Rule

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It’s important to note (and this is where it starts to get confusing), that this is only for shipments that do not have an overlength item – for those shipments, the overlength rules noted above would apply (although some carriers might rate it both ways and apply the higher rate of the two rules).

Cubic Capacity Rules (also called Density Rules)

Lastly, cubic capacity (or density) rules also come into play. For most carriers, these rules don’t apply unless a shipment is over 750 cubic feet and less than 6 pounds per cubic foot density. However, there are some carriers that have lower threshold rules as well (e.g., ABF also has a rule for shipments more than 350 cubic feet and less than 4 pounds per cubic foot density). An example of the cubic capacity rule for Ward Transport & Logistics is shown below.

Ward-Cubic-Capacity-Rule

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When cubic capacity rules apply, most carriers will automatically rate the shipment at a specified freight class (e.g., 125 in the Ward example) and they will artificially max out the weight according to a specified density rating and the rated dimensions (e.g., 6 pounds per cubic foot in the Ward example). The new cubic capacity rate will apply instead of the standard LTL pricing. For this reason, it is important to know the accurate dimensions and density of your shipment. Many carriers and 3PLs provide “density calculators” on their websites for this purpose; however, it is important to understand that most carriers will apply cubic capacity rules according to the space a shipment takes on its trailer (and not necessarily a shipment’s actual cubic feet). So a 48” non-stackable pallet will be considered to be 96” high by most carriers because they cannot load additional freight on top of the pallet. Likewise, a 52” wide pallet will be considered to be 96” wide since a second, standard pallet cannot be loaded alongside it.

As an additional example, a 5,000 pounds shipment of eight (8) standard (48x40x48) stackable pallets will equate to 426.7 cubic feet (192x80x96) and a density of 11.72 pounds per cubic foot. However, that same shipment, if non-stackable, would equate to 853.3 cubic feet and a density of 5.86 pounds per cubic foot. As a result, the latter shipment would most surely be “hit” with the carrier’s cubic capacity rule in lieu of standard LTL pricing.

Logistics Plus is here to help!

The bottom line is that LTL overlength, linear foot, cubic capacity rules are very complex and nearly impossible to quote accurately 100% of the time. That is why we recommend caution when quoting anything over 12 feet in length – and the logistics specialists at Logistics Plus are here to help if you have any questions regarding how to calculate density or apply any of the rules discussed above. We do incorporate the overlength fees and various other scenarios we can trust into our cloud-based TMS (called eShipPlus); but, as a general rule, we will not automatically quote any shipment that is over 750 cubic feet. For those shipments – or really for any shipment that is over 12 feet and/or 6 pallets – oftentimes we can quote those manually for our customers and obtain a much better “volume/spot” rate than standard LTL pricing. Drop us a line or give us a call if we can help you too!

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NMFC Changes effective April 25, 2020

NMFC Changes effective April 25, 2020

NMFC-Guide-BookIn case you missed it, the Commodity Classifications Standards Board (CCSB) has published a new supplement to the National Motor Freight Classification (NMFC®). These changes became effective 4/25/2020. A few of the notable changes are listed below (thank you for the assist from our friends at Estes Express).

  • Foodstuffs group – A variety of changes here. The most significant being a new Item 134710 – Meats or Poultry, cooked, cured, dried, dry salted, pickled, smoked (NEW) or preserved, with or without other ingredients.
    • Sub 1 – Less than 8 pcf – class 150
    • Sub 2 – 8 but less than 12 – class 100
    • Sub 3 – 12 or greater – class 70
  • Organic Peroxides, Item 45463 .
    • New classes for Types B, C D, E and F.
  • Bathtubs, Showers, Shower Stalls, Hot Tubs or Spas, Item 158260.
    • New classes dependent upon packaging and density. Six groupings. Item 158261 is canceled.
  • 183100 TOBACCO, MANUFACTURED, GROUP: Articles consist of Manufactured (NEW) Tobacco, including Cigarettes, Cigars, Chew, Dip or Snuff, as described in items subject to this grouping.
    • New Item which replaces Cigarettes and Cigars group #47760 and all related items.  New items for the following
      • Cigars, cigarettes or cigarillos. Three classes dependent upon density
      • Kits, cigarette making – class 100
      • Tobacco, smokeless, including Chewing Tobacco (Chew), Dipping(NEW) Tobacco (Dip), Snuff, Plug or Twist – Less than 12 pcf – class 100, greater than 12 pcf – class 77.5
      • Tobacco, smoking, including Hookah, Shisha or Pipe Tobacco,(NEW) cut or granulated – Three classes dependent upon density.
  • Household goods, Personal Effects or Military baggage – As modified, the description of item 100250 is amended by addition of the phrase “subject to Full Replacement Value (FRV) coverage,” and the last sentence of Note, item 100251, reading “This definition of FRV does not apply on motor vehicles, including automobiles or motorcycles,” is removed. These amendments are made for clarification and to better reflect the Defense Transportation Regulations.
  • Saunas or Steam Baths, portable, – New Item 172740 which replaces 39220. New class is 175.
  • Sauna or Steam Rooms, combined or not combined with showers – New Item which replaces 170650. New class is 150.
  • Eyeglasses, Spectacles or Sunglasses, NOI – Item 57830 . Revised and regrouped under two subs. Sub 1 – less than 6 pcf , class 200, sub 2 – 6 or greater, class 125.
  • Compressors, air, NOI; or Air Ends, NOI – Item 118100. Item 118100 is amended to provide density breaks at 8 and 12 pcf, with classes as shown. Sub 1 is amended to no longer apply on air compressors tendered “protected by a full-height fiberboard cap testing not less than 275 pounds and secured on lift truck skids or pallets.” New Note, item 118101 is established to provide additional packaging requirements.
  • 82270 Metallic or Wooden Furniture, NOI, including Freestanding Panels, Partitions or Screens – Items 81550 and 82500 are canceled with reference to the full-scale density-based provisions of item 82270, and as modified, reference to freestanding panels, partitions or screens is added to the description of item 82270. Concurrently, Note, item 82501 is canceled with no further application.
  • 153040 Envelopes, NOI, including Seed Envelopes or Packets, paper or paperboard. Item revised to class 77.5. Items 153030 and 153032 are canceled.
  • 111655 Litter or Bedding, animal, in bags or boxes. Item revised from three density groupings to four density groupings. The density scale in item 111655 is amended by the addition of a break at 8 pcf, assigning class 175 to densities of less than 8 pcf. The noun “Bedding” is added to the description, while the references to “poultry” and “with or without additives” as well as the packaging reference to “drums” are removed.
  • 35085 Partitions or Walls, interior, or Panels therefor, with or without integral (NEW) doors, – New Item which replaces 35040, Has Six density groupings and classes based on Length (exceeding or NOT exceeding 96 inches) and density. Old item was a simple class 70.
  • Item 680, Sec. 9(a) – Amended to allow alternative methods of securement, while Sec. 9(b) provides specifications for how freight is to be secured on lift truck skids, pallets or platforms. Item 680, Sec. 7(c) and Package 107, which currently refer to Secs. 9(a) or (b), are amended accordingly.
  • 114145 Air Humidifiers, NOI, with blowers or fans and Item 26580 Humidifiers.
    • Item 26580 is amended by replacing “hot air house heating furnace” with “whole house,” and class 150 is assigned. Item 114145 is amended to provide classes based on packaging and density.
  • 49795 Aprons, Coveralls, Laboratory Coats, Pants, Shirts or Clothing, NOI, disposable and 56530 Caps, Hoods, Leggings or Shoe Covers, disposable.
    • Items 49795 and 56530 are canceled with reference to new item 56545, naming “Clothing, disposable, paper or nonwoven cloth, with or without reinforcement of other materials,” at class 150. The new item makes reference to Note, item 56714 for clarification. Note, item 49797 is canceled with no further application, and Note, item 49885 is amended accordingly.
  • 40085 Marshmallows, NOI – Class changed from 85 to Class 175 on less than 7 pcf and 100 on 7 or greater.
  • 53020  Coolers, draft beer dispensing (Kegerators), – Item 53020 is amended to assign class 175, and as modified, the item description is amended to read, “Coolers, draft beer dispensing (Kegerators), see Note, item 53021, other than hand portable, with or without mechanical cooling or freezing apparatus, drainboards or faucets (taps).” Also as modified, new Note, item 53021 is established to clarify that the item “Applies on coolers that dispense beer or other beverages from kegs.”
  • Item 680, Sec. 6(a) – Amended to define “outer containers,” while Sec. 6(b) defines “inner containers.” Item 680, Secs. 6(c) and 6(d), and the title of the section are concurrently amended for clarification and uniformity.
  • 61840 Extractors, juice (Juicers), countertop, – Amended from a single class 77.5 to provide less than 7 pcf, class 175, and greater than 7 pcf, class 100.
  • 196000 Tires, rubber, scrap,. This Item canceled and replaced with  195720 Scrap, rubber tire, other than tires in their original form or shape, class 77.5.
  • 156960 Netting, – amended to provide classes predicated on density breaks at 8 and 12 pcf, and the description is amended by removing the phrase “wound on cores, spools or tubes.
  • 150970 Filter Stock – Amended to provide classes predicated on a density break at 8 pcf, and to remove packaging references to crates and to wrapped bales or bundles.
  • 50312 Compounds, water cleaning or treating, bath, pool, spa or hot tub, – add restrictive language, and refer to new Note, item 50314, stating that the item does not apply on materials regulated by the DOT as hazardous and required to bear a Hazard Class or Hazard Division label. The new Note directs the Classification user to other items for classes applicable to such hazardous materials.
  • Additional detail is included in the DISPOSITION BULLETIN 1356.

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Keeping Your Loading Docks Healthy

Keeping Your Loading Docks Healthy

Covid-19: Tips for Shippers & Consignees

As a result of the coronavirus (COVID-19) pandemic, many truck drivers are finding that it’s increasingly difficult to deliver freight. Some drivers are being denied into buildings, some are being required to fill out extra forms and bills are being left in the back of trailers.  Listed below are 9 tips for keeping your loading docks healthy.  (Click the banner or thumbnail image below to download a PDF copy of these tips)

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1) Ask Drivers and Dock Personnel to maintain the practice of “Social Distancing” and stand 6-10 feet away when interacting.

2) Make hand sanitizer, hand washing stations, disposable face masks, clean and unused pens readily available to drivers and dock personnel.

3) Limit loading and offloading, sort & segregation, routine inspection and count, and other dock activities to your own shipping/receiving personnel to avoid having drivers spend any unnecessary time on the dock.

4) Shippers – provide pre-signed copies of BOL’s and shipping docs on the freight, or in the back of the loaded trailer to limit interaction with driver.

5) Consignees – request that the driver themselves record the exact time of delivery, note any exceptions and obtain the name of the person who is accepting the freight. If a copy of the delivery receipt is required, request the driver leave a copy on top of the freight.

6) Many larger carriers have implemented their own forms of social distancing and rules of interaction for their drivers.  Please be understanding and respectful of new policies drivers may be instructed to follow by their management.

7) Many shippers and consignees are asking drivers to stay in their trucks and stay out of buildings completely.  This is a good way to help avoid contact all together.  However…

8) Please consider that many regions have closed rest areas, public restrooms, restaurants, dining rooms, etc.  Drivers need access to clean bathrooms and hand washing facilities now more than ever.  Please help make sanitary basic restroom facilities accessible either inside your facility or by providing external port-a-potties and portable hand washing stations.  The drivers that are serving you will appreciate it!!!!

9) Check the CDC website for updates: https://www.cdc.gov/coronavirus/

To read more updates and FAQ’s, including what Logistics Plus is doing to assist our customers during this pandemic, click here.

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Freight Pricing: Contract Rates Versus Spot Rates

Freight Pricing: Contract Rates Versus Spot Rates

freight pricingIn order to effectively manage your freight spend, it’s important to understand the different pricing options you have when negotiating freight rates. Both contract rates and spot rates offer a different value proposition, and one is not always better than the other. The only way to gain full control over your freight spend lies in finding the perfect balance between the two and knowing when to utilize them. Here are some benefits and shortfalls for both freight pricing options.

Contract Rates
A contract rate is the rate a motor carrier, freight broker or logistics provider agrees to use when moving a shipper’s freight in a set lane over a specific period of time. Contract rates have a fixed term, typically one year, and they offer the security of both price and capacity. While many shippers use contract rates, they can be a gamble depending on how the market shifts. Carriers get stuck with cheap loads when the market is high but they can profit big when the market is down.

Spot Rates
A spot rate is the price a freight service provider offers a shipper at any given time to move their shipment from Point A to Point B. Spot rates are based on market conditions at the time you are quoted for an immediate settlement of a service (in this case shipping). Since spot rates follow the fundamental concept of supply and demand, an increase in capacity will lower prices, while a decrease in capacity will raise prices. Like contract rates, exclusively using spot rates is a gamble depending on the market conditions at the time of your shipment.

Finding The Perfect Balance
Being able to assess freight pricing by reviewing the current market and setting expectations for the coming days or weeks is hard to do. The best way shippers can find a balance between contract rates and spot rates is to keep tabs on the current market rates while taking advantage of existing contracts when appropriate. Typically, contract freight rates are the preferred method of pricing for higher volume shippers because it locks in a price and sets expectations for a high level of service.

In order to effectively manage your freight spend, it’s important to find the perfect balance between contract rates and spot rates. If you’re still confused about what pricing option works best for you, contact us today for a free freight analysis.

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Freight Bill Auditing: Recapture Your Lost Revenue

Freight Bill Auditing: Recapture Your Lost Revenue

freight bill auditingAs freight rates become increasingly complex due to changing fuel surcharges, accessorials and discounts, it’s easy for freight carriers to make mistakes on their invoices. To solve this problem, freight bill auditing is used to capture lost revenue from errors or inaccuracies with freight invoicing.  Although it may seem like a cumbersome task to shippers, there are many cost-saving benefits to implementing a freight bill auditing program.

The Most Common Freight Bill Errors

  1. Shipper Inaccuracy: When the staff processing the shipment makes a mistake, it causes the carrier to obtain inaccurate information for the shipment (e.g., giving the wrong dimensions or freight class).
  2. Detention Fees: Inaccurate detention fees are common on freight bills. A detention fee is charged when the shipper exceeds the allotted time frame allowed for a pickup or delivery.
  3. Accessorial Charges: Because there are so many different accessorial services and fees, it’s easy for a carrier to charge the shipper for an extra accessorial that they didn’t ask for (e.g., lift-gate or notify before delivery).

Ways To Keep Freight Auditing Under Control

  1. Prior to tendering a shipment, always reweigh it to ensure your freight carrier or transportation management system (TMS) has the proper information it needs to give you an accurate quote.
  2. Stay up-to-date with the individual carrier processes for submitting invoice corrections. Methods by each carrier vary and it is best to have each process documented and understood.
  3. Review each invoice to make sure that all data matches the original shipment details. This includes the pickup date, delivery confirmation, weight, dimensions, freight class, etc.
  4. Outsource your freight bill auditing to a third-party logistics (3PL) company.  Logistics Plus Freight Audit Solutions (LPFAS) incorporates a comprehensive 3-point check to ensure that your small pack, parcel, LTL, truckload, and international invoices are accurate, disputed when necessary, and adjustments are made when needed (including “claw-back” refunds on small package shipments for missed guarantees, non-tendered shipments, etc.).

Shippers that don’t have a freight audit program in place are losing money every day. If you’re tired of fighting invoice discrepancies and mistakes that are costing you money, contact us today.

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