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13 March
Why is freight consolidation beneficial for shippers and carriers?

If you ship LTL (Less Than Truckload) goods frequently, you always want safe, secure, and, more importantly, cost-effective means of transportation for their delivery. You try to find those shipping options where you don’t have to pay much to move your products without compromising their safety during transit. Fortunately, some modern shipping methods are reliable, dependable, and inexpensive compared to their traditional counterparts. One of these shipping methods is freight consolidation, a widely used transportation option for moving LTL (Less Than Truckload) shipments. Freight consolidation brings several advantages for both shippers and carriers. Before discussing these advantages, getting basic knowledge about freight consolidation is essential.

What is freight consolidation?

Freight consolidation refers to bundling or consolidating several small (LTL) shipments into a single truckload to move them on a single instead of many trucks. It’s a suitable shipping option for small shipments with the same delivery destination. The process of freight consolidation reduces the number of trips required to deliver freight, decreasing the shipping costs for shippers and retailers. Freight consolidation service has many other names, such as assembly service or cargo consolidation. However, the concept remains the same no matter what it is called.

Advantages of freight consolidation for shippers and carriers

Where freight consolidation provides cost-effective means of transportation for shippers and retailers, it also offers carriers a wide range of benefits. Here, we have discussed the advantage of freight consolidation for shippers and carriers separately.

Advantages of freight consolidation for shippers

1.      Cost savings

The most significant advantage of freight consolidation for shippers is cost savings. Through consolidation, several small shipments can be transported on a single truck, reducing the trips required to deliver your freight. It significantly lowers your shipping and handling costs, saving you more money to invest in your business’s flourishment.

2.      Time-saving

Freight consolidation saves you time by delivering all small shipments in one trip. It can be a real difference-maker for small-sized businesses that have their survival associated with ensuring the on-time delivery of their products to their customers. Delivering goods to customers in the shortest possible timeframe also offers you a competitive advantage.

3.      Safety Advantage

It’s a reality that your shipments can be susceptible to various perils during transit. However, when they’re consolidated into one compact shipment, the risk of any damage or loss to it greatly reduces. Also, handling a single shipment is easier for carriers. Another aspect of the safety advantage of freight consolidation is that your freight is on a single truck instead of many. So, the odds of involving in an accident are low, offering you the peace of mind that your product is being transported safely.

4.      Flexibility and efficiency

Flexibility and efficiency are one of the factors that attract shippers toward freight consolidation. Shipping a consolidated freight is an efficient option compared to transporting small shipments separately. It reduces the transit times of freight, making you a reliable choice for your customers.

Advantages of freight consolidation for carriers

Carriers or truckers can benefit from freight consolidation in the following ways:

1.      Increased revenue

Consolidation allows truckers or freight shipping companies to combine or bundle shipments from multiple clients into one shipment, decreasing their trips and increasing revenue. Freight consolidation is a profitable shipping option for carriers specialized in moving LTL shipments.

2.      Decreases deadhead miles

Delivering several shipments on a single truck decreases the number of deadhead miles a carrier has to travel, which improves their shipping efficiency, increases profits, and decreases operational costs.

3.      Better optimization of trucking equipment

Freight consolidation allows carriers to optimize their trucking equipment more efficiently. When the trucks don’t have to travel empty miles, they’re certainly available to ship more freight, increasing the shipping capacity of a carrier.

Summing up, freight consolidation can be a win-win shipping option for both shippers and carriers.

13 March
Understanding the fundamentals of commercial trucking insurance

For owner-operators and trucking companies, the safety of their equipment and cargo is paramount. Trucks and trailers delivering freight on the roads can be exposed to various risks, such as accidents, theft, or damage, making it a serious safety concern for truckers. Statistics show that thousands of trucking accidents happen every year in the country, causing the trucking industry to lose millions of dollars.

Truckers seek ways to protect their fleet from accidents, damages, or theft. That is where commercial trucking insurance comes in handy. With the right trucking insurance policy, you can protect your business, fleet, and cargo you’re hauling from potential financial losses and damages. In this article, we have discussed the fundamentals of commercial trucking insurance in detail.

What is commercial trucking insurance?

Commercial trucking insurance, also called commercial auto insurance, is a legal contract between a trucker (owner-operator or trucking company) and an insurance company. It provides coverage for the trucker’s fleet, trailers, and cargo against accidents, physical damages, and financial losses that occur due to theft incidents. Commercial trucking insurance is specially designed to protect the interests of trucking businesses.

Why do you need commercial trucking insurance?

If you’re an owner-operator or running a trucking company, you’re legally required to carry the minimum commercial trucking coverage to comply with safety regulations and carry out your business operations without any legal complications. A trucking insurance policy is not only a legal requirement but also in the larger interest of your business. It saves you a lot of money you would likely pay for repair or replacement costs if your truck or trailer gets damaged while hauling freight.

What type of coverage does commercial trucking insurance provide?

Before you consider purchasing a trucking insurance policy for your business, it’s important to know about the different types of coverage it offers. Here, we have discussed some primary coverages that commercial truck insurance provides.

· Liability coverage

Trucking insurance offers two types of liability coverage:

Primary liability coverage

Primarily liability coverage protects you from third-party claims regarding a bodily injury or property damage caused by your trucks or trailers. FMCSA obligates truckers to carry a minimum primary liability coverage of $750000.

General liability coverage

General liability coverage protects you from third-party lawsuits regarding bodily injuries, property damages, or mistakes during loading and unloading processes outside your business premises.

· Physical damage coverage

Physical damage insurance covers the repair or replacement costs if your trucking equipment (trucks or trailers) gets damaged due to an accident or theft. It’s one of the mandatory coverages of trucking insurance. It also covers the damages to your truck or trailer due to a collision with another vehicle.

· Cargo coverage

This type of trucking insurance coverage protects the cargo being hauled by your truck or trailer from damages or losses caused by accidents, theft, or other covered perils. Cargo coverage covers most commodities that are transported on trucks.

· UIM/UM (Uninsured/Underinsured) Motorist Coverage

UIM/UM motorist coverage protects your truck and driver involved in an accident caused by uninsured or underinsured drivers who don’t have enough coverage to pay for your losses. This coverage reimburses you for the repair or replacement costs of your damaged trucking equipment.

· Medical payment coverage

As the name suggests, medical payment coverage reimburses you for medical bills and treatment costs if the driver or passengers of your business truck gets injured due to an accident. This coverage is mandatory in some states and optional in others.

· Non-trucking liability coverage

This type of insurance covers your trucks against damages and losses when they’re parked at your business place and are not in operation.

Besides these coverages, you may also add several other optional coverages to your policy, such as motor truck cargo coverage and trailer interchange coverage. The type of coverage you need on your commercial trucking insurance policy entirely depends on your coverage needs and the nature of the trucking services you offer.


13 March
How can truckers effectively deal with cargo theft during transit?

Cargo theft is one of the risks that truckers may face while transporting goods on the road. High-value items like expensive industrial equipment and hi-tech appliances are more likely to be the target of theft. Cargo theft incidents not only affect the truckers but also create a massive ripple effect that impacts the whole transportation industry. Every year, thousands of incidents are reported across the country in which a cargo theft attempt has resulted in damages to freight, financial losses, or even personal danger to the truck drivers.

In this situation, it has become imperative for truckers to adopt effective practices to avoid cargo theft during transit. Here, we have discussed some helpful tips to help you deal with cargo theft more effectively.

1. Careful route planning

Before starting your trip to deliver freight, make sure you have planned the route carefully. Your route mustn’t have any high-risk areas where theft activities are easier. Don’t forget to communicate with local authorities to get knowledge about cargo theft hotspots while planning your route.

2. Increase the use of technology.

Modern technology can be the most effective tool for you against cargo theft. Incorporate the latest freight tracking and tracing technologies, such as GPS-based real-time tracking systems, into your trucking equipment to ensure visibility into freight for you during transit. You can also use tracking devices on your freight to get information about its real-time location during transportation.

3. Use security devices

Before starting a trip, properly secure the cargo with advanced, high-quality security devices, like digital locks, seals, and alarms. Modern alarms inform you if anybody even touches the freight during transit.

4. Communication is key

The risk of cargo theft can be mitigated to a larger extent if all stakeholders, including the shipper, carrier, and truck driver, stay in touch consistently during transit. Communication is vital, especially between the truck driver and the dispatch center, so appropriate measures can be taken immediately if a threat of theft is looming.

5. Truck drivers must stay vigilant.

Truck drivers must be aware of their surroundings and any suspicious activities happening around their trucks or cargo. If they notice anything suspicious, they should immediately report it to the authorities for further protective measures.

6. Train your drivers

Train your drivers on how to prevent cargo theft, how to recognize potential theft situations, and what to do in case of an emergency. Give them training on how to use modern security apps and devices. They should also know about the cargo theft hotspots in the country.

7. Regular security audits

Conducting regular security audits of your transportation processes and operations allows you to identify vulnerabilities and rectify them before anything wrong happens. These audits also suggest additional security measures to make your systems fool-proof against theft activities.

8. Strategic parking

Isolated parking areas are considered cargo theft hotspots. Therefore, parking your truck in such areas is always risky. You should also avoid parking at uncrowded locations where thieves have easy access. It’s also important to train your truck drivers on strategic parking in which trucks are parked in a way that their tail end faces a hard surface or a wall to block off the opening of their gates. If such a facility is not available, parking against a light pole or pillar can also be helpful. Strategical parking makes it harder to access the cargo, even if it’s left unattended.

Although cargo theft is a growing problem, following these tips can help you deal with it effectively.