Inbound freight is typically the last frontier for many companies search for cost savings in their freight spend, as there is an abundance of complexities that are often outside the Logistics & Supply Chain Department's control. When talking about Inbound Freight Management a term often used is Freight Term Optimization (FTO), which is the process by which shippers strategically establish the most advantageous freight terms, while minimizing the total inbound landed cost. The optimal freight terms are influenced by a shipper’s ability to consolidate orders across days, shipments across vendors / customers, order level-level service requirements and the shipper’s ability to plan and execute routing options like multi-stop LTL, static or dynamic pooling, zone skipping, backhauls, etc.
Everything you need to know about domestic intermodal and how to be successful implementing it into your logistics strategy. Gives tips, tricks and insights on intermodal and what to watch out for when converting from truckload to intermodal.
Frequent readers of our weekly blogs know, InTek Freight & Logistics is a strong advocate for logistics professionals to diversify their 53' capacity by converting or augmenting truckload volume through converting a portion of their capacity requirements to intermodal for improved value and capacity.
A rising tide in Trans-Pacific ocean freight rates is the expectation analysts are projecting for 2017. While increases have been discussed in previous years, BCO's and NVO's should plan for them stick stick, as steamship lines remind the market of the Hanjin bankruptcy of 2016.
As regulations increase on an already limited about of temp controlled shipping options. it becomes more and more essential for shippers to open their horizons on where they can obtain temp controlled equipment and solutions for commodities that need refrigerated protection. Whether it is to maintain 45 degrees for shipping potatoes, or the other extreme, minus 10 degrees for the shipment of frozen desserts and pastries, now is the time to lock in capacity and rates.
The key motivator shippers have on their mind, as to why to consider intermodal, is significant cost savings over truckload (>15%), which is the main talking point IMC’s pull from their sales quiver.
The typical seasonal truckload and 53' intermodal spot rate surge logistics professionals have been trained to navigate every year was very narrow (meaning the length of time was short) and viewed as essentially non-existent this year.
While shippers continue to talk the importance of high quality freight services, as with any business, the reality is you have to be relevant on price to have the opportunity to talk about service.