|
|||
|---|---|---|---|
General Freight Information |
|||
|
Freight ?
Freight is a term used to classify the transportation of cargo and at Smart Cabinetry we use a variety
of shipping methods. Normally we are usually organized into various shipment categories before your order is
transported. This is dependent on several factors:
Small Parcel ?
Very small business items or individual items like contracts or catalogs require envelopes that are
considered "overnight express" or "express letter" shipments. These shipments are rarely over a few pounds,
and almost always travel in the carrier's own packaging. Service levels are variable, depending on customer
needs. Express shipments almost always travel some distance by air. An envelope may go USA coast to USA coast overnight or it may take several days, depending on the service options and prices chosen you our customer. At Smart, we currently use the overnight and 2nd day air shipments of UPS and Fed Ex. Smart Cabinetry will certainly use other couriers if and when necessary to service our customers.
"See service levels Map" Parcel shipments rarely travel by air, and typically move via road ground service. This type of shipment is the most economical. We recognize all shipments are important to our customers as well as to Smart Cabinetry but the item being sent can not be justified sending "air" overnight unless requested by you the customer. Unless you specify, we will always chose ground services. - UPS Ground Service Less-than-Truckload (LTL) Freight ?
The first category of freight shipment is "less than truckload" (LTL), which represents the majority of
"freight" shipments and the majority of business-to-business (B2B) shipments. LTL shipments are also often
referred to as "motor freight." LTL shipments range from 100 pounds to about 15,000 pounds, and are always
less than 100" wide or 28' long because LTL carriers' trailers are typically 28' long. The shipments are usually palletized, shrink-wrapped and packaged for a mixed-freight environment. "Air cargo" or "air freight" shipments are very similar to LTL shipments in terms of size and packaging requirements. However, air freight shipments typically need to move at much faster speeds than 500 miles per day. Air shipments may be booked by contacting Smart Customer Service. While shipments move faster than standard LTL, "air" shipments don't always actually move by air. Smart Cabinetry has three options to shipping and packaging LTL freight to point of destination.
Truckload (TL) freight ?
In the United States of America, shipments larger than about 15,000 pounds are typically classified as
"truckload" (TL), given that 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 80,000 pounds in the U.S. In ordinary circumstances,
long-haul equipment will weigh about 35,000 pounds; leaving about 45,000 pounds of freight capacity. Similarly a load is limited to the space available in the trailer; normally 48 or 53 feet long and about 100 inches wide and 106 inches high. Full TL's of cabinets on a 53' foot trailer will not weight more than 30,000 pounds. In fact you will cube out your TL and fill shipment with a volume of cabinets before you overload in weight.
Smart Cabinetry packages all TL shipments off of 1 of 4 docks in the plant.
How freight pricing works ?
Express letter and parcel carriers typically have fairly simple pricing based on package size and service
level requested; however, freight pricing is considerably more complicated. LTL carriers typically charge by
freight "class."
The National Motor Freight Traffic Association, Inc. (NMFTA) issues a publication called the National Motor Freight Classification (NMFC). The NMFC is basically a list of every kind of item that ships via truck. Each item has a class assigned to it based on the item's density, load ability or mix ability, value, and other factors. Freight classes range from 50 to 500, and generally indicate the percentage of the base rate that should apply. So class 85 freight should be charged 85% of the full rate between points A and B, theoretically. More dense items such as steel and machinery have low classifications such as Class 50 through 85. Fragile or bulky items fall into freight classes 125 to 500, and pay higher shipment costs. LTL rates are quoted "per 100 pounds" or "cwt" or 'per hundred weight". Besides the discount off of base rate created by the freight class, there is typically a second discount applied to the calculated transportation rate. These discounts are negotiated by the shipper with individual LTL carriers. For example, a given LTL lane may have a rate of $50 cwt. If a shipment is 1,000 lbs at class 70, then the adjusted base rate is $35 cwt (70% of 50 cwt) or $350. If the hypothetical shipper had negotiated a 50% discount on published tariff rates, this would give a final price of $175 for the shipment. A good example of an LTL carrier's pricing application process can be found at the Fed Ex website www.fedex.com. Besides class, rates, and discounts, an LTL carrier will apply a wide range of surcharges and accessorial charges that will affect the final price of the shipment. Most shipments will receive a fuel surcharge, which is always a significant proportion of the overall cost, possibly as much as 30% or more. Some common accessorial charges are:
Truckload (TL) carriers usually charge a rate per mile. The rate varies depending on the distance, geographic location of the delivery, items being shipped, equipment type required, and service times required. 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. Smart Cabinetry optimizes our service to our customers and costs by sampling rates from many different carriers. Smart Cabinetry utilizes a strategic alliance with various freight vendors with different capabilities to quote ones freight. Freight quotes are held firm up to 7 days or until the next weekly DOT Fuel Index which is updated. Estimates in freight rates are just "estimates" and Smart Cabinetry will not be held accountable for estimates on freight. We will try to keep our reps and our customers as up to date as possible as rates change in the shipping industry. Freight packaging ?
All LTL shipments should be palletized and wrapped in plastic to protect from damage when shipping 5-7
cabinets. Most shipments should be fully palletized in order to ensure a damage-free delivery unless we
use Roadways patented service "sealed divider".
Smart Cabinetry will ask the carrier and has worked tirelessly defining the specific packaging requirements for each shipment - then exceed those requirements. As a result of the "hub and spoke" LTL industry design, shipments may be loaded and reloaded several times, it is important that the packaging has all the shipper and consignee info clearly noted on at least two sides of the shipment. It is also important that we find the carrier with most direct route and fewest numbers of "moves" between Smart Cabinetry and its destination. Filing claims with freight companies are unnecessary with Smart Cabinetry. We realize it is a cumbersome and time consuming process.So we at Smart Cabinetry take extra care in packaging to avoid freight claims.
|
|||
|
|||