US companies will need to diversify their transportation models to compete in today’s cost-cutting climate. Many American companies that control their shipping are being forced by market forces to reexamine how they move assets and get their product to market.
A Traffic Manager for a major European automobile manufacturer once told me that that in Europe they do 90% of their shipping by rail and only 10% by truck. And in America it is exactly the reverse.
There are many reasons for this dichotomy, having to do with the proximity of population centers, the age of infrastructure, etc. But as more and more US companies look to cut expenses and save money on shipping, rail and other modes of transportation are taking a more prominent role in America. It is becoming apparent that US shippers – retailers, manufacturers, and service providers moving their assets – will need to become familiar with multiple modes of transportation in order to remain competitive.
Transportation companies are taking notice of this shift in thinking. More and more are beginning to add multimodal approaches to their transportation quotes, and are conducting cost analyses to compare combinations of trucking, rail, and even barge services for lanes and projects that might have only been considered as trucking candidates in the past.
For instance, a plant relocation moving from one rail served location to another should involve a transportation provider that can analyze the costs and benefits of rail and truck and know how to use a combination of the two to maximize efficiencies and cost effectiveness. Ignoring one mode or the other could be a significant missed opportunity to cut costs.
Regular movements over longer distances are particularly attractive to rail carriers and often command lower rail rates. Even if a shipper does not have rail access at origin and destination, longer distances can allow the costs of transloading to be absorbed by these long haul discounts.
A little research to find a transportation provider with multimodal expertise could provide a great benefit to any shipper with the imagination to think outside of the box and the drive to cut expenses.
Access America Transport has had a record-breaking 2010 and we have very high expectations for 2011. 2011 will be a transitional time for our industry as shippers, carriers and 3PL’s begin to understand the full impact of the implementation of new regulations such as CSA 2010. We believe our model and planning allow us the ability to respond quickly to any possible scenario that might affect the freight market.
Access America Transport has preemptively implemented several measures related to the CSA 2010 rollout that we hope will ease the transition for our partners.While the overall affect on supply and demand remains to be seen, we believe that ultimately the new regulations will make our highways safer. How does this affect our business? The new measures have changed the way we vet our partner carriers and build relationships. Previously, we looked solely at SAFESTAT scores and safety ratings as our leading indicators of a carrier’s ability to safely transport a shipment. Access America Transport will now look at each basic principle of CSA 2010 to make this type of determination.
Access America Transport has been in communication with our largest partners for quite some time concerning these new measures. It is our hope that this dialogue has helped mitigate some potential problems. We are also exploring possible monetary and non-monetary incentives for carriers whose scores are in the top percentile. We have worked with many of our customers to educate them in order to ensure a smooth transition on their end as well. Our early indicators show that there could be anything from a slight affect to a major upheaval on the market based on increased demand for hiring and retaining the safest drivers. We have always used a weighted scale which incentivizes our logistics coordinators to work with partners with superior safety ratings. We have found this logic has typically translated over in the form of superior service for our customers.
Access America Transport appears poised for another stellar year of growth in 2011. We believe CSA 2010 is certainly going to change our industry, but that preparation and understanding these new metrics will be the keys to success. Access America will continue to focus on continuous improvement and increasing efficiency. We will not waiver from our commitments to customers and partner carriers.We anticipate substantial growth over the coming months and will abide by those same principles of commitment, quality, service and integrity in our business practices.
Access America enables our day to day operations of moving freight into the hands of the most talented people in the transportation industry. Many companies speak about Supply Chain Operations, yet have a hard time communicating within Divisions. It has always been AAT’s goal to provide the best customer service, knowledge and price to our customers. We believe that when you present the right environment to your employees and teach them how to manage a small business that success follows.
Our Freight Consultants are empowered to find customers, find carriers and ultimately put the 2 together. Most importantly they are given the opportunity to succeed and watch a load from “Cradle to Grave”. There is always one point of contact for the shipment; both the customer and carrier deal directly with our FC. It has always been our goal to have customers not just be a number, but rather a partner. This is the same with our carriers too, without a strong carrier base a 3PL would be without a way to get the shipment from point A to B. Communication is key… We are in direct contact with the shipper as well as the carrier. There are no divisions to “pass” off the freight to in order to have a carrier be put on the load. As well as our carrier partners can have complete access via a web-based TMS to see our available loads. If they see a load they want then the carrier will simply call the FC responsible for the load and arrange for pick up. Simplicity seems best, but common sense seems even better. Our FCs are capable of moving a single load up to handling a RFP with thousands of lanes.
All of our Freight Consultants have a complete multi-mode knowledge and are experts in the industry when it comes to “A Complete Supply Chain Option”.
CHATTANOOGA, TN - Access America Transport, a leading third-party logistics company, has been recognized by Inbound Logistics as a Top 100 3PL provider for 2010. The Inbound Logistics editorial staff selected from a pool of more than 500 companies using questionnaires, personal interviews, and in-depth transportation research. Access America Transport is currently featured in the July issue of the logistics publication.
“We are excited to be identified as one the nation’s premier 3PL’s for the second year in a row,” said Access America Vice President Chad Eichelberger. “We believe the commitment and resolve of our employees to our customer base is second to none.”Read more on the Company News page.
Shipping your goods over the nation’s highways just got a whole lot more complicated. Why?
Compliance Safety Accountability 2010 (CSA 2010), the Federal Motor Carrier Safety Administration (FMCSA), together with state partners and industry will work to further reduce commercial vehicle (CMV) crashes, fatalities, and injuries on our Nation’s highways.
CSA 2010 is a fundamental change in reporting of safety, compliance, vehicle, driver and regulatory violations. The FMCSA’s SAFESTAT reporting algorithm was the standard in deciding what a negligent carrier was and who was performing at their best. Now with the roll out of CSA 2010 the game has changed. SAFESTAT was a culmination of driver scores 74 or below was a satisfactory carrier, Vehicle scores would be the culmination again of 74 or below being satisfactory anything higher is unsatisfactory.
CSA 2010 takes it further by breaking the scoring to 7 basic principles. (BASICS)
- Unsafe Driving — Operation of commercial motor vehicles (CMVs) by drivers in a dangerous or careless manner. Example Violations: Speeding, reckless driving, improper lane change, and inattention. (FMCSR Parts 392 and 397)
- Fatigued Driving (Hours-of-Service) — Operation of CMVs by drivers who are ill, fatigued, or in non-compliance with the Hours-of-Service (HOS) regulations. This BASIC includes violations of regulations pertaining to logbooks as they relate to HOS requirements and the management of CMV driver fatigue. Example Violations: HOS, logbook, and operating a CMV while ill or fatigued. (FMCSR Parts 392 and 395)
- Driver Fitness — Operation of CMVs by drivers who are unfit to operate a CMV due to lack of training, experience, or medical qualifications. Example Violations: Failure to have a valid and appropriate commercial driver’s license and being medically unqualified to operate a CMV. (FMCSR Parts 383 and 391)
- Controlled Substances/Alcohol — Operation of CMVs by drivers who are impaired due to alcohol, illegal drugs, and misuse of prescription or over-the-counter medications. Example Violations: Use or possession of controlled substances/alcohol. (FMCSR Parts 382 and 392)
- Vehicle Maintenance — Failure to properly maintain a CMV. Example Violations: Brakes, lights, and other mechanical defects, and failure to make required repairs. (FMCSR Parts 393 and 396)
- Cargo-Related — Failure to properly prevent shifting loads, spilled or dropped cargo, overloading, and unsafe handling of hazardous materials on a CMV. Example Violations: Improper load securement, cargo retention, size and weight, and hazardous material handling. (FMCSR Parts 392, 393, 397 and HM Violations)
- Crash Indicator— Histories or patterns of high crash involvement, including frequency and severity. It is based on information from State-reported crashes.
Deficiencies will be more meticulously scrutinized then before. The burden is solely on the carrier to take corrective action. This plan will also enable the DOT and FMCSA to monitor more problem carriers than before.
A carrier’s measurement for each BASIC depends on:
- The number of adverse safety events (violations related to that BASIC or crashes)
- The severity of violations or crashes
- When the adverse safety events occurred (more recent events are weighted more heavily).
After a measurement is determined, the carrier is then placed in a peer group (e.g., other carriers with similar numbers of inspections). Percentiles from 0 to 100 are then determined by comparing the BASIC measurements of the carrier to the measurements of other carriers in the peer group. 100 indicate the worst performance.
** Sound Complicated?? Well It is. **
What CSA 2010 means to you, if you are a Shipper?
If you are a shipper using motor carriers to transport your products then you need to be knowledgeable about CSA 2010 as possible or you need to be utilizing a 3PL with a Compliance Department to protect you from hiring carriers with deficient scores and violations.
Access America Transport has a staff of compliance professionals that monitors these scores and regulatory requirements so the shippers don’t have to. Most transportation contracts stipulate that their shipments be transported safely with qualified carriers. Access America Transport has the means, the staffing and the know how to manage the risk and compliance for you.
Due to the fact that the scoring will change even top rated carriers, there is to be an expected reduction in motor carriers and qualified drivers on the road. Experts believe up to 75 thousand drivers could be out of business and the good ones are going to charge a whole lot more. Access America Transport can mitigate some of those increases because of its own economies of scale. Several hundred shipments a year is far less than the tens of thousands we do annually.
Gary Shostak
Director of Compliance and Risk Management
Access America Transport Inc.
I heard a wonderful panel discussion at the Truckload Carriers Association annual meeting. The panel was led by Bob Costello, the chief economist of the ATA (American Trucking Association) he had four different segments of our economy represented on the panel. I am definitely not a journalist, but did my best to capture their thoughts.
Bob Costello, Chief Economist for the ATA
- He said, ask eight carriers how they are doing right now and you will get eight different answers.
- Sees growth in 2010, but not “gangbuster growth”. After two horrible years, he believes this is a transition year. He believes 2011 will be very strong.
- Many good carriers have been slammed the 1st two months of the year.
- He doesn’t see inflation because companies are being so efficient.
- Warren Buffet buying the Burlington Northern caused a rail renaissance.
Bruce Carlton- President of NITL (National Industrial Transportation League)
- He is cautiously optimistic about this year. He thinks, the Great Recession is a “life changing moment” for many families. He thinks, buying patterns will be forever changed.
- Many shippers are nervous that carriers won’t want to pick up and buy more equipment, when their freight picks up.
- Many members have gotten “insane rates”.
- When talking about investing in our highways, bridges and infrastructure, he said his members are willing and ready to pay their fair share of taxes. He mentioned congress is using the additional tax revenue to pay down the deficit instead of using it where it was intended to go too.
Casey Chroust- President of Retail Industry Leaders Association
- His members range from Target, Best Buy, big box stores, to technology companies like Apple.
- It seemed to me, his members are a mixed bag. He has many discounters like Bj’s and Costco that have done extremely well. The high end stores are not building any new stores right now.
- His members have become very proficient with their supply chains. They have no extra inventory and their carrying costs have dampened.
- He mentioned Lowes will not setup up a carrier that is not Smartway certified.
- The international shift in manufacturing isn’t changing. He is seeing many companies finding new sourcing away from China to Thailand, Cambodia, Vietnam and possibly Africa. Companies are finding even cheaper labor in these emerging markets.
- The Panama Canal is making a wider and deeper canal that will serve the biggest ships. These big ships can hold 8000 containers. Once the canal is built, the US east coast ports will take off.
- Told a great story about Wal-Mart and their power. Wal-Mart demanded that all of their laundry detergent suppliers sell them the concentrated liquid instead of the big bulky containers. By Wal-mart doing this, it saved the United States water supply the equivalent of 100 million showers a year. It also took thousands of truckloads off the road because you can get more product on a truck and saved millions of tons of plastic tonnage a year.
Kirk Pickerel- President and CEO at Associated Builders and Contractors
- He has mixed signals about economy, but tends to be optimistic. When he looks at all the data, it doesn’t seem good.
- Backlogs have been at 20%.
- Banks have to lend more, getting financing has been a struggle.
- He has seen data that suggests the unemployment in construction is at 24.7%.
- The power sector & highway sector have both fared well. The commercial building has been nasty, companies are losing money on projects to get business and keep employees. Margins have been slashed on every job.
- Doesn’t think the stimulus money created any jobs, but saved some.
- Congress doesn’t have the “guts” to invest in infrastructure like China and Brazil. We have to find a way to fund a long-term transportation bill.
Stephen Sibert- Senior Vice President of Industry Affairs of Grocery Manufacturing Association
- They have members that range from Nestle all the way down to small companies that produce their own soups.
- He sees a lot of consolidating in his industry. The big boys are gobbling up their smaller competitors.
- Seeing major growth in private labeling.
- Higher end restaurants have suffered, but Mcdonalds and Taco bell are way up.
- Who would have ever thought Starbucks would sell freeze dried coffee? Companies are trying new things to improve sales.
- % of costs of goods for transportation have dropped from 6.9% to 6.5%! Carriers have cut costs to keep their business.
- Packages have gotten smaller, because the United States is on a healthier eating trend. He has also seen some companies have gone to square packaging to minimize claims.
CHATTANOOGA, TN - Access America Transport, a leading third-party logistics company has been selected by the Chattanooga Area Chamber of Commerce as the Business of the Year for 2010. The announcement was made on Wednesday at a chamber luncheon in front of 1,200 audience members from various Chattanooga businesses and civic organizations.
“It is great to receive recognition from the chamber and our peer businesses in the Chattanooga area, said Ted Alling, Access America Transport President. The award is a testament to the hard work of our employees and their desire to see the company succeed.”
Read more on the Company News page.
Moving oversized loads out of job sites can be very challenging. Some of the factors that can cause problems are:
* Site readiness – often times, a site can be muddy, or have a narrow or unsuitable entrance. A lot of times the specialized equipment used to move job site machinery has a low ground clearance and the load to be hauled is wide, high or long. Thus, the entrance must be level and dry, and big enough to move wide or long equipment in and out. It is not uncommon for a site to require improvements such as grading or added gravel.
* Inaccurate dimensions – Many times the owner of the freight has not even seen the commodity, or has only a rudimentary awareness of the dimensions of the material to be shipped. It is always a good idea to send a company representative to a site to verify reported measurements.
* Communication – Jobs site are often situated in rural areas with poor or no cell reception. Thus, it can be really hard to communicate with the driver or shipper during the course of loading the equipment.
You can usually count on something going wrong when shipping used equipment out of a job site, no matter how prepared you think you are. The best way to remedy this is to do a lot of research and lay appropriate ground work with your customer. Send someone you trust out to the site, or go there yourself. Make sure you get your own measurements, and get a good look at the site to see if it can accommodate the kind of equipment need to do the job. Also, make sure you have good contact information with back-up numbers in case the reception is bad at the site. Finally, let your customer know in the beginning that unexpected occurrences are a definite possibility and could result additional charges.
Access America Transport is a third-party, non-asset based logistics company. We have loyal and dedicated customers that count on us daily to deliver their freight in a safe and timely manner, in turn we always have freight moving at all times. We always strive to work with carriers that are experienced, dependable, and safe. We use all types of carriers with different capabilities to haul for us including: LTL, full truckload shipments including van and refrigerated/frozen, flatbed, intermodal, and specialized heavy haul freight shipped by either truck or rail.
We have become a third party leader with our carriers, because not only do we take care and provide for our customers, we also do the same with our carriers. We pay our carriers every 28 days, even if our customer does not pay us. We also provide a quick pay service paid by a comcheck that only charges a 4% penalty. This type of service is offered with fuel advances as well.
Access America Transport is also an ISO 9001 certified company and we take great pride in that honor. We attain this by taking rigorous precautions to hire the safest carriers that we can. We interface our software with Registry and Monitoring, a company that automatically updates our carriers insurance in our system and alert us should a carrier have any insurance cancellations or have their authority revoked. We also check each carrier’s safety score as well as their safe stat score on Carrier 411 and even go the extra mile to check their accident reports on the FMCSA government website. By doing this, we as a company are doing our due diligence to make sure that our carriers, our customer’s shipments, and the general public are safe out on the roads. Without the safety and dedication of our carriers, Access America would not have a business. Access America Transport… Driving towards a safer tomorrow.
To get set up with us as a carrier, please contact Lindsey O’Hara at 866-272-2057, ext. 147, or email at lohara@accessamericatransport.com. We look forward to doing future business with you!
Tradeshow shipping seems hard, but let Access America Transport take this worry off of your hands and be the seamless shipping that you deserve. We are the experts in the industry for shipping tradeshow booths all over the US. Many times the real problem is that shippers choose the wrong carrier in the beginning to ship their freight. Not every carrier is contracted by the Tradeshow vendor that is running the show, but by using Access America Transport you no longer have to worry about that.
Also, what happens if you know who the carrier is, but don’t have a good discount with them? Access America has rates with over 45 carriers and will be able to not only save you time, but most importantly money with your tradeshow shipments. We provide free quotes so you know exactly what you will be charged before the tradeshow even begins…how many times have you come home from a tradeshow and found out weeks later that your cost changed significantly, well this will never happen again. We will handle both shipping out to the tradeshow and handle the return shipment as well, please call us today to show you the right way to ship tradeshow materials.
Paperwork is not an issue as we handle all of the necessary Bill of Ladings for you. We personally dispatch the carrier so we know that your important shipment will be picked up and delivered back to you as it should. We will handle EVERYTHING!
Next Page »
|
