Freight Shipping
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Editor's Note: This post has been updated with new links and content. Original Publication Date: March 15, 2013 In the parcel world, the terms freight invoices and bills of lading are used frequently. But what is the difference? ...

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Editor's Note: This post has been updated with new links and content. Original Publication Date: May 31, 2013 One of the questions we get a lot is about freight cost accounting — specifically, how to record freight costs in accounting. In this post, we’ll discuss what makes freight accounting different from accounting in ot...

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Top 2020 parcel trends are creating smarter shippers and mitigating costs. Trend #1: Rates Will Continue to Rise At the end of every year, UPS and FedEx announce their general price increase for next year. On average, the increase is only around 4.9%. What you don't see in that increase is the surcharges. This year surcharges are going to have a large impact on parcel...

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Peak shipping season is here and to ensure your packages are delivered in time for the Holidays, download our Holiday Shipping Deadline Calendar below. In addition, please be aware of this year’s Peak Season surcharges. On October 1, 2019, UPS implemented the following Peak Season surcharges: ...

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It's that time of year once again. UPS & FedEx are dishing out another costly general price increase to small parcel shippers effective December 29, 2019 for UPS and January 6, 2020 for FedEx. It is important to understand that the announced UPS & FedEx rate increases are only averages and the impact on your company could vary greatly. Over the past decade (2010-2020), UPS an...

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UPS Billable Weight Is Important To Understand UPS billable weight is an important topic worth talking about. There are a couple of variables that go into determining UPS billable weight. So, shipping rates depend on three variables. You have the ...

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Parcel Carriers: Breaking it Down The two primary parcel carriers offer some innovative billing tools on their websites. And I'm speaking specifically about FedEx and UPS. I'll talk about them one at a time. For FedEx, they offer a program available on their website that you need to sign up for. They call it FedEx Billing Online. They designed it to give you the ability to...

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Freight Payment Issues Explained It is primary to ensure that all your freight payment invoices are being audited. Much of it starts with negotiating the carrier pricing that you received to begin with. Everything that follows is a result of that contract. What you need to make sure is that all your carriers adhe...

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Freight Bill Payment Improved with Lojistic Software Lojistic helps with freight bill payment in different ways. The primary way is how it consolidates all your invoices. It combines them from all your carriers into one spot. There's also often the difficulty of timing. Not to mention when bills are coming in, who they're coming in from. There are different pricing schemas...

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Freight Bill Audit Benefits There is a primary benefit of using a freight bill audit. That is to understand exactly where you are spending your money. Your more reputable auditors will offer GL coding as well. So within your accounting, you can make sure that you di...

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Freight Audit Basics First, you should never pay a free bill without a freight audit. Now whether you do that yourself or whether you hire a third party to do that, they should audit every bill. The reason for that is: errors happen. In the case of freight, the errors are usually big dollar amounts. When we analyze an invoice, we have software for those errors. We look at ...

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Supply Chain Consulting Defined Supply chain consulting is a wide range of things, so it varies. This includes understanding how to manage your packaging. It means managing your inbound transportation. Also, this means your own fulfillment, warehousing, and ...

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Rate Negotiation Considerations Rate negotiation is an important thing for customers to understand. Customers ask, "What's the difference between the different types of negotiations?" And there is one specific term that we like to use sometimes and that's a rate ...

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Parcel Negotiation Basics Parcel negotiation is the time of the year when you enter into a negotiation with a parcel carrier. It could be with a carrier like UPS or FedEx. What you're trying to do is get the best of what you can get out of the carrier from a rate persp...

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Freight Audit Explained A freight audit looks at all your bills and notes from transportation carriers. Then it makes sure that they're accurate. And by accurate we mean that you have a contract with each of these carriers. Were your charges correct? The invoice suggests that it delivered on a certain date, did it? You may have bought certain things like ...

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LTL Basics Have you ever had a bunch of shipping that you needed to do? It was more than would fit inside of a small box, and it's not so much that you could buy an entire truck? LTL fits that middle need. It is a type of shipping that does run full trucks across the country. But the difference is that LTL takes a pallet or a few from you with other customers who also have one or a f...

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Lojistic TMS Platform Offers Better and Faster Shipping Solutions TMS is an acronym that means Transportation Management System. It makes sure that all your shipping goes with the right carrier to the right place for the right price. That's the primary reason for it. So it takes a lot of setup. It's complex. What distinguishes ours from most is the ease of use. We have 40-...

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Freight shipping costs can add up quickly, and as a big shipper, we’re sure you already knew that. But what most freight shippers don’t know is that there is a super easy way to achieve potentially huge freight cost savings with basically no operational costs required. Oh, and there’s no additional manpower required to secure the savings. One of the easiest ways to secure signific...

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Throughout the centuries there have been many modes of freight transportation. For many years, goods traveled to their destinations by way of horse drawn wagons. This mode of moving freight was slow and often dangerous. Later, with the introduction of the railway system, business owners could send goods across the country in a faster, safer way. Goods traveled to various cities via steamboat and, ...

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Westbound Shipping Services have unveiled the latest in container-tech, a transparent shipping container. This container is an industry first, and is on the forefront of freight industry technology.The container is made from a high density, scratch-resistant Perspex cast acrylic. It is then fitted with a small power pack that is charged by solar panels and kinetic movement. The power pac...

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The act of trading, or bartering, involves exchanging one thing for another. For instance, one person may trade a treasured baseball card in his collection for one he likes even more. The people in a bartering transaction must be satisfied with what they will receive in return for what they give. Trading and bartering can be traced back to ancient societies. For example, in ancient Chin...

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Fast shipping is one of the keys to making a logistics organization successful. Speed often translates directly into savings, as long as the work is undertaken with due efficiency. Of course, if there were “secrets” to fast shipping, then everyone would know them by now. However, there are certain due diligence steps that you can take to expedite your parcel ship...

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If you have been thinking about becoming a freight agent or a freight broker agent, you may be wondering how freight agent jobs have been doing since the recession. Luckily, logistics is very much a recession-proof industry: Although logistics activity can be dampened in certain areas and at certain times, there will always be a need to move goods from one place to a...

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Freight shippers vary a great deal in what they can offer your organization, and you might find yourself replacing old shippers or looking for new ones for a wide variety of reasons. A freight shipper may have a great record of performance, but may be unable to meet all of your needs as your business grows. On the other hand, it may be necessary to find freight shipp...

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The Complex Topic of Air Freight Calculations and Dimensional Weight If you need to calculate freight, especially air freight, you might find it’s a little bit more complex than it appears at first. That’s because you need to calculate freight shipping using something called volumetric weight, dimensional weight, ...

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Freight claims can be very complex and even a freight claim form itself can present challenging issues to an enterprise, compounding the problems such a form is meant to address in the first place. If a freight claim form is filled out incorrectly, the end result can be difficulty making and supporting your freight claims, which can cost your business a great deal of money. Every step of gathering...

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If you are involved in any enterprise that is heavily focused upon logistics, odds are good that you will eventually find yourself selecting a freight forwarder, or perhaps a number of different freight forwarders, to meet your company’s needs. Or, as is often the case, you might be thinking about how to further your career as a freight forwarder after working in a leadership role that has to do...

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Are you considering becoming a freight broker? Freight brokers are an extremely important part of the logistics landscape around the world. A freight broker has important duties that help to ensure cargo transactions go as planned for everyone involved in the process. Also, freight brokers have the opportunity to learn a great deal about logistics conditions in their area of specialization. This c...

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Are you wondering about greening the supply chain? As time goes on, greening the supply chain becomes a more and more important consideration for ensuring that your brand offers your clients the sense of ecological soundness that will motivate them to expand their business with you. Customers are increasingly influenced by social consciousness when making buying decisions between services that the...

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If you are involved in logistics or related fields, or in an industry that depends upon logistics in order to be successful, you are well-served by knowing as much as you can about the basics of freight claims. In the event that items in transit are lost or damaged, freight claims are the means of recovering some of that lost value. However, just as in any insurance situation, it is very important...

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Cost is a perennial concern in everything to do with logistics. Shipping and handling costs make up a major part of the money spent on logistics by most companies in a given year, and so, many efforts are undertaken to reduce shipping and handling costs by improving contract terms and optimizing carrier relationships. However, contro...

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Are you wondering how to determine shipping costs? Shipping costs are, of course, among the most important factors involved in determining the costs of your entire logistics operation. In order to make sure that you understand your costs and can plan for them in the future, you should standardize them to the extent possible. This requires a thorough, point-by-point review of the most basic operati...

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It’s a very common question these days: What is reverse logistics? In many different industries, reverse logistics is becoming more and more important to building brand loyalty and safeguarding the bottom line. Reverse logistic operations can be complex, but they are truly worthwhile to those enterprises who engage in them in an appropriately methodical way. But what is reverse logist...

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What is global logistics? In order to compete in a globalized, international economy, you will have to have a good understanding of how the global logistics situation impacts your business. You will also need to develop custom global logistics that will allow you to expand your firm and its operations internationally without taking on either untenable consulting fees or operational deficits. Custo...

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Is your business challenged by the day-to-day difficulties of business to business logistics? If so, you are not alone. Business to business or “B2B” logistics planning is very distinct from the business-to-consumer or “B2C” landscape that many companies have a greater level of familiarity with. The “B2B” arena of business logistics management comes with all the challenges of “B2C”...

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It’s reasonable to wonder if third party logistics services are truly worth it for your business. After all, you might have concerns that it will take some time to start up third party logistics for your organization. Third party logistics companies vary in quality and in terms of what they have to offer your bottom line. Plus, trusting third party logistics providers means giving a consultant a...

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Wondering about your true logistics costs? Logistics costs are mutable, not fixed, so any one category of logistic cost is subject to your enterprise’s own efforts. Logistic cost analysis is a crucial first step to finding any logistic cost that is out of step with the needs and expectations of your business. In fact, it is the first thing that you need to do in order to implement a truly compre...

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No matter what industry you are in, you already know that implementing the right logistic solutions is critical to your business. You also know that effective and efficient logistics management is one of the best ways to control your costs as your business grows. However, we can get so caught up in the details of freight management logistics that we apply a definition to the field that is too broa...

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The tides are turning again for the shipping industry, this time in regards to energy efficiency and environmental friendliness. In the past, there hasn’t been much incentive for any of the world’s major shipping agencies to improve the performance of their ships. Now though, with ship owners being heavily scrutinized on the eco-efficiency...

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Even with the brunt of the Great Recession behind us, the global shipping industry has still seen companies slip into the deep blue of nonexistence. However, in the most recent month of market trading, some have bounced back with the best figures seen in years; we’re thinking about Ultrapetrol, whose stock soared...

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Shipping solutions can sometimes feel like more trouble than they’re worth. We know it, and so do you; but this doesn’t have to be the case for the upstart or the entrepreneur. Since the world has grown into an increasingly digital marketplace, more and more solutions to shipping woes are emerging. The legacy ...

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Many businesses are hesitant to complain to the shipping giants responsible for getting their customers’ orders delivered to them on time. They may be aware of the fact that auditing their invoices for mistakes or attempting to renegotiate their carrier contract may save them some...

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As the world continues to evolve with new technology, it also brings forth new challenges to businesses and their supply chains.  Luckily, there are many interesting methods and ideas to help the supply chain become more efficient and cost-effective as well as forward-thinking in terms of it’s impact on the world.  One way to be both helpful and cost-savings is to make sure to think of sustain...

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The supply chain has stayed fairly traditional in most businesses for a long time as many can easily chart how their supply chain moves about.  However, on the digital front, the concept has constantly been evolving as technology and user interfaces continue to change at a rapid pace.  As we discussed in previous blog posts, these digital players are quite notable players in the supply chain, af...

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The carrier system has for a long time been a very oligarchic system, only made up mainly of two carriers, UPS and FedEx.  Because of these two carriers, the rules of the shipping industry have always been based on comparing these two carriers’ prices and agreements and can, for insightful businesses, create a method to reduce shipping costs overall.  However, this very system could change in ...

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2012 has been a busy year for the shipping industry both in big news items.  Such events as the 2012 shipping rate increase has already affected many businesses’ budget plans for the year while floods and earthquakes in 2011 has shaken up many companies to look deeper into their risk management programs to create a viable Plan B.  An interesting piece of news that will only, most likely, grow ...

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There are many ways to reduce your shipping costs, but to do this, you need to be knowledgeable about smaller aspects of shipping you may have not been privy to before.  One of the more immediate ways to save on shipping is by focusing on large packages you ship.  Here, we’ll hone in on FedEx specifically, although the general lessons here can be applied to UPS as well.  FedEx, when checking ...

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By closely evaluating your business’s shipping and distribution patterns, you may identify many areas that you can easily discount freight costs. Below are 3 simple practices that will allow you to effectively assess your current practices, and help you identify areas for improvement.Logistics ReportingLogistics reporting is essential in effectively...

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The global economy has increased trade across borders and many businesses have outsourced production to other countries. This has increased the demand for international transport services. While transport safety has improved over the years, goods can still be damaged during transport. Bearing the brunt of this liability is the carrier performing international transports. To avoid liability, a carr...

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Most freight bill auditing companies would tell you that things were going well for their customers until the summer's end in 2008. That's when the credit crisis and worldwide recession hit, causing the commodity and freight markets to collapse. Shipping line operators suffered due to decreased trade, shipyards were inundated with ord...

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To ensure your business prospers during these tough economic times, parcel auditors will tell you to seek out reliable, multimodal freight services that provide accurate import and export documentation and up-to-date customs clearances. Whether you need to ship small parcel or palletized freight, you'll need a global shipping solution to meet your needs, time schedule and budget. And to help you c...

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If your company ships a significant amount of small parcel packages, it is a good idea to utilize excellent shipping distribution visibility tools. Ideally, that means real-time shipment status, as well as having location and delivery time information available to customers, suppliers and third-party logistics providers. Some parcel audit...

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To protect your packages, you have a variety of tactics and seal options to choose from. Yes, freight costs have gone up, but you shouldn't scrimp on package security. For starters, you need to establish just how vulnerable your carrier has been to theft. That means taking a close look at the carriers' ...

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You can avoid many of the most common international shipping problems if you follow a few simple steps. Keep in mind that it's not easy to compare services and prices when you're dealing with an international shipper. When you negotiate freight rates for international shipments… "let the buyer beware" whe...

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