This is more from a shippers perspective. Still interesting.
Expedited Transport: All in the Timing - Inbound Logistics
Expedited Transport: All in the Timing - Inbound Logistics
Interesting article on expedite trucking.
- Thread starter Lawrence
- Start date
Interesting but also somewhat disheartening for our little niche of the market. The more expedite choices traditional carriers offer the shipper, the lower the rates for us expedite specific carriers.
Can someone translate these paragraphs I lifted from the article? Mostly the paragraph in bold type has me confused.
Less-than-truckload (LTL) service providers are also stepping up their expedited game. YRC Freight, an LTL carrier based in Overland Park, Kansas, recently optimized its network to require fewer touches and cut at least one day of transit time in hundreds of lanes. New load plans and distribution center guides ensure its expedited, time-critical cargo is tail-loaded and processed quickly. The company also facilitates expediting by enabling shippers to simply indicate the service desired on the shipment's bill of lading, as an alternative to regular booking processes.
These services give shippers new options amidst a general trend toward mode shifting, driven by issues such as high costs and fuel surcharges, heightened security requirements, reduced capacity, and delays and congestion.
"Every transportation and supply chain manager is trying to mode-shift," says John Hill, executive vice president of sales for freight forwarder Pilot Freight Services, Lima, Pa. "If they're using two-day service, they want three- to five-day. If they're using next-day, they want second day." Yet their urgency doesn't change, making new expedited offerings a welcome development.
Can someone translate these paragraphs I lifted from the article? Mostly the paragraph in bold type has me confused.
Less-than-truckload (LTL) service providers are also stepping up their expedited game. YRC Freight, an LTL carrier based in Overland Park, Kansas, recently optimized its network to require fewer touches and cut at least one day of transit time in hundreds of lanes. New load plans and distribution center guides ensure its expedited, time-critical cargo is tail-loaded and processed quickly. The company also facilitates expediting by enabling shippers to simply indicate the service desired on the shipment's bill of lading, as an alternative to regular booking processes.
These services give shippers new options amidst a general trend toward mode shifting, driven by issues such as high costs and fuel surcharges, heightened security requirements, reduced capacity, and delays and congestion.
"Every transportation and supply chain manager is trying to mode-shift," says John Hill, executive vice president of sales for freight forwarder Pilot Freight Services, Lima, Pa. "If they're using two-day service, they want three- to five-day. If they're using next-day, they want second day." Yet their urgency doesn't change, making new expedited offerings a welcome development.
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Yeah but at 644,000 miles will I see a significant R.O.I. if I upgrade my transmission to mode-shift capabilities?
English please brainiac.
I've made a few contacts via general freight loadboards of this kind of expedite. Not auto parts but consumer goods that must be moved in a hurry. The shipments I am running come in as air freight are loaded on my truck at 2am and delivered straight thru at 5:30am a 110 miles away. There are guys who run these loads on the nights they pop up every time. The rate is ok. They will get the delivery orders sometimes early in the morning or even a day before the loads ship. I've run the at the going rate that other drivers are getting. I have also several times jacked the rate by $200 and $300 by waiting until late afternoon and even as late as 10 pm to book a 2am pickup... When I have a day booked up and worked out I will grab one for the normal rate and build a fantastic day of revenue on very few miles. When I am done with a good day of revenue and ready to go home calling it a night, I will check to see if they are available, this is when the rate gets jacked up. They either need my truck or don't, whatever, it's fine with me regardless.
The customer always pays more. What choice do they have if they want it covered? But they are getting time sensitive premium service and that is how the game is played. None of this freight I have found nor these brokers are affiliated with traditional expedite Sylectus, NLM or whatever.. ..in fact I have found many contacts for auto parts expedited needs off general freight loadboards where that is the case. Really it doesn't matter if the freight is auto parts or the latest electronic gizmo to hit the shelves. All that matters is they need it picked up and delivered on schedule asap and it doesn;t sit on my truck overnight, that is expedite.. That pays a premium.. I don;t think this cheapens anything I think it means more opportunity. It's nice being leased on at a company where I am not stuck doing whatever contract or expedite auto freight they have available or whatever they can get from sylectus. Sylectus is something I use to fill in gaps from other contacts I have.
In my short time hauling loads off of it I have found that there tends to be a lot of companies on there who expect to get the time sensitive auto parts moved back and forth for less than premium rates, along the lines of an "ok" general freight rate... I'm sorry but I don't haul expedite for rates like that when I can get better ones from general freight. I do not have to have ANY load that is out there or offered my business model revolves around profit on every load and when there are no loads going to the house does not make me unprofitable. If I fill in a gap with a load from sylectus it is paying a premium rate. My other contacts outside of sylectus already offer and pay premeium rates for my services. And what general freight I pick off of loadboards pays them as well. Expedite or general freight will always pay as well as you are willing to make it pay... Does not matter if it is auto parts, if it picks and runs straight thru to drop on a schedule it is time sensitive and it will pay...
The customer always pays more. What choice do they have if they want it covered? But they are getting time sensitive premium service and that is how the game is played. None of this freight I have found nor these brokers are affiliated with traditional expedite Sylectus, NLM or whatever.. ..in fact I have found many contacts for auto parts expedited needs off general freight loadboards where that is the case. Really it doesn't matter if the freight is auto parts or the latest electronic gizmo to hit the shelves. All that matters is they need it picked up and delivered on schedule asap and it doesn;t sit on my truck overnight, that is expedite.. That pays a premium.. I don;t think this cheapens anything I think it means more opportunity. It's nice being leased on at a company where I am not stuck doing whatever contract or expedite auto freight they have available or whatever they can get from sylectus. Sylectus is something I use to fill in gaps from other contacts I have.
In my short time hauling loads off of it I have found that there tends to be a lot of companies on there who expect to get the time sensitive auto parts moved back and forth for less than premium rates, along the lines of an "ok" general freight rate... I'm sorry but I don't haul expedite for rates like that when I can get better ones from general freight. I do not have to have ANY load that is out there or offered my business model revolves around profit on every load and when there are no loads going to the house does not make me unprofitable. If I fill in a gap with a load from sylectus it is paying a premium rate. My other contacts outside of sylectus already offer and pay premeium rates for my services. And what general freight I pick off of loadboards pays them as well. Expedite or general freight will always pay as well as you are willing to make it pay... Does not matter if it is auto parts, if it picks and runs straight thru to drop on a schedule it is time sensitive and it will pay...
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agreed, it was an interesting article.
21cExp
Veteran Expediter
I believe you can only get the new mode-shift trans with the super-clutch versions.
21cExp
Veteran Expediter
Yeah man, a very cool article. I love reading things like this and appreciate your linking it here. They help me understand better the what's and why's of what we do and what may affect the future of expediting.
M
michealjames
Guest
It is really an interesting article about expedited transportation services. This kind of transport logistic service is very much useful while supply-chain which has extra benefits such as lowering inventory carrying costs etc.
Micheal, do you also go by the name John Hill? There's a certain similarity in this paragraph from the linked article and your post.
"Every transportation and supply chain manager is trying to mode-shift," says John Hill, executive vice president of sales for freight forwarder Pilot Freight Services, Lima, Pa. "If they're using two-day service, they want three- to five-day. If they're using next-day, they want second day." Yet their urgency doesn't change, making new expedited offerings a welcome development.
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