There are 70,000 independent trucking contractors in California and 136,950 locally owned trucking companies with independent drivers. This bill is expected to result in a drop in the number of drivers and trucks available in the California market. This can result in reduced capacity among the California trucking industry.
California AB 5 – Shippers
With this bill, many carriers will choose not to renew their lease agreements with drivers that are independent contractors. Some trucking companies fear they could go out of business as they will be losing most of their employees. As mentioned above, these effects will cause a reduction in capacity and increase in pricing for shippers, but it is still unclear to what degree that it will be.
California AB 5 – Carriers
Under this new bill, the state of California and its cities now have the right to file lawsuits against a company for misclassifying its workers as contractors. Going forward, carriers are facing a difficult decision and are currently figuring out how to go about this law. In order to adapt, some are likely to hire out of state contractors, while others are considering going to court with the state to obtain exemption.
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The International Maritime Organisation (IMO) has ruled that from 1 January 2020, marine sector emissions in international waters be slashed. The marine sector will have to reduce sulphur emissions by over 80% by switching to lower sulphur fuels. The current maximum fuel oil sulphur limit of 3.5 weight percent (wt%) will fall to 0.5 wt%. IMO 2020 regulations will see the largest reduction in the sulphur content of a transportation fuel undertaken at one time.
Why is everyone talking about a fuel specification?
The marine sector, which consumed 3.8 million barrels per day of fuel oil in 2017, is responsible for half of global fuel oil demand. IMO sulphur regulations therefore have the potential to be highly disruptive to the pricing and availability of compliant fuels.
Who will be affected by IMO 2020?
The costs of ocean going freight will increase as the marine sector uses more costly fuels, which has wide reaching consequences across the global economy. The impact could be felt from mid-2019 onwards and last for a few years, as the refining and shipping sectors adapt.
What does IMO 2020 mean for my business?
Growing demand for middle distillates could result in upward price pressure on fuels such as diesel and jet fuel. Knock-on effects from the upcoming cap on sulphur emissions in marine bunker fuel could even wind up giving you a more expensive plane ticket in 2020. Get detailed analysis for your industry and sector below.
What is ECA and SECA in maritime?
Sulphur Emission Control Areas (SECAs) or Emission Control Areas (ECAs) are sea areas in which stricter controls were established to minimize airborne emissions (SOx, NOx, ODS, VOC) from ships as defined by Annex VI of the 1997 MARPOL Protocol which came into effect in May 2005.
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Logistics consultants, like Larry Mullne, recommend that freight shippers fully evaluate their processes and the services they offer when implementing a cost-savings plan. Learn the difference between partial and less than truckload.
HOUSTON, Nov. 22, 2019 /PRNewswire/ — Partial truckloads are beneficial for both the shipper and the freight carrier. When the load of goods doesn’t fill up a truck, partial truckloads can help decrease the cost to ship. Meeting the requirements for less than truckload (LTL) shipping is hard for most businesses, however, many of them don’t ship enough goods to fill up a truck or make it worth the cost of a full truckload (FTL).
This is when using partial truckload shipping is the most cost-effective option. Freight shippers offer this option to their customers to help them ship more efficiently and pass on their cost savings to their customers. Logistics Consultant Larry Mullne from AA Logistics Truckingrecommends that freight shippers fully evaluate their processes when implementing a cost-savings plan. Utilizing partial truckloads to increase effectiveness is one of the things he teaches shipping companies how to do to take control of shipments and costs.
Partial truckloads is a method of freight shipping that many carriers offer. The term partial truckload comes from the truck being partially filled with goods by their customer. This type of shipping method is often more cost-effective for smaller and mid-sized companies that are shipping enough goods to fill more than a handful of pallets. Partial truckloads contain between six and 15 pallets. This type of shipping is best used by national and global shippers to help increase their effectiveness.
Partial truckloads vs less than truckloads (LTL)
Knowing the difference between types of truckloads is important for customers. Without knowing the details of shipping methods, they may end up paying more costs and fees than they should. Less than truckloads (or LTL) are designed to ship smaller amounts of goods like one to six pallets. While appearing cost-effective up front, they are smaller than six pallets. Loading and unloading will occur on the truck and the chance for damage is increased. The stops can take longer than anticipated, significantly delay the delivery times and become more costly than partial truckloads. Partial truckloads do not require freight class.
Benefits of shipping partial truckload:
Pay only for what is used; more cost-effective than multiple less than truckload shipments
No freight class required
Decreased risk of damage because of fewer stops
Improved potential for on-time delivery
AA Logistics offers a state-of-the-art LTL system that puts the shippers in control of their LTL process. Larry’s main goal is to help his customers find a cost-effective option that allows them to have control over their shipments. Call Larry Mullne at 713-300-4054 to discuss the benefits of partial truckloads versus LTL. https://aalogisticstrucking.com/.
https://aalogisticstrucking.com/wp-content/uploads/2019/11/Larry-Mullne-From-AA-Logistics-Trucking.jpg639960adminhttps://aalogisticstrucking.com/wp-content/uploads/2019/04/AA-Logistics-Logo.pngadmin2019-11-23 09:28:262019-11-23 09:54:24Larry Mullne From AA Logistics Trucking Explains Why Partial Truckloads Are a Beneficial Way to Ship Freight
Partial truckloads are beneficial for both the shipper and the freight carrier. When the load of goods doesn’t fill up a truck, partial truckloads can help decrease the cost to ship. Often companies fall in between the more common types of shipping. Meeting the requirements for less than truckload (LTL) shipping is hard for most businesses, however many of them don’t ship enough goods to fill up a truck or make it worth the cost of a full truckload (FTL).
This is when using partial truckload shipping is the most cost effective option. Freight shippers offer this option to their customers to help them ship more efficiently and pass on their cost savings to their customers. Logistics Consultants, like Larry Mullne, recommend that freight shippers fully evaluate their processes and the services they offer when implementing a cost saving plan. Utilizing partial truckloads to increase effectiveness is one of the things he teaches shipping companies how to do when he helps them take control of their shipments and their costs. He, like many other logistics experts, believes that controlling shipments fully allows companies to control their costs.
Partial truckloads is a method of freight shipping that many carriers offer as a service to their customers. The term partial truckload comes from the truck being partially filled with goods by their customer. This type of shipping method is often more cost effective for smaller and mid-sized companies that are shipping enough goods to fill more than a handful of pallets. Partial truckloads fall in-between less than truckload and full truckload shipments, meaning they contain between 6 and 20 pallets.
This type of shipping is best used by national and global shippers to help increase their effectiveness. Partial truckloads can mean fewer stops and less cost than other modes of shipping. Freight shippers who offer this method are most likely to have a good understanding of how they ship and how they can control their costs. Shipping companies that effectively utilize partial truckload shipping are typically more affordable, as they can pass on their savings to their customers.
Partial truckloads vs less than truckloads (LTL)
Knowing the difference between types of truckloads is important for customers. Without knowing the details of shipping methods, they may end up paying more costs and fees than they should. Less than truckloads (or LTL) are designed to ship smaller amounts of goods. This means that it takes more stops to fill up that with partial truckloads. While less than truckloads appear to be cost effective up front, they have a down side as well. Since less than truckload shipments must be smaller than 6 pallets, loading and unloading will occur on the truck and the chance for damage is increased. In addition that, the stops can take longer than anticipated and significantly delay the scheduled delivery times. Once that impacts customer service, the less than truckload option can become more costly than partial truckloads.
Partial truckload shipments can save money on shipping. They are more cost effective than shipping multiple less than truckloads and typically have decreased risk for damage. Overall, freight shipping companies that offer partial truckload shipments, like AA Logistics, provide a valuable service for companies that don’t ship enough to fill an entire truck.
Partial truckloads vs full truckloads (FTL)
The biggest difference between the two is that partial truckloads do not require freight class. Full truckloads are also different than partial truckloads in that they fill up most of the truck. This type of shipping is the most costly upfront and requires at least 18 pallets. Full truckloads are loaded and then delivered without stops at other locations or other items being loaded onto this truck. This makes full truckload shipping the type with the least risk of damage to goods. However, it is not a cost effective option for many businesses.
Benefits of shipping partial truckload
There are many benefits to partial truckload shipping according to Larry Mullne, owner of AA Logistics. Partial truckload shipping is a cost saving option for those shipping goods and the haulers. Since it doesn’t require freight class or a full truck, the cost and size of the shipment is more practical. Additional benefits of using partial truckload shipping are below.
Pay only for what is used
Customers don’t have to worry about paying for hidden fees and unused space with partial truckloads as they are calculated by the amount of space the goods take up in the truck. Using linear feet to measure exactly how much space the shipment takes up to calculate the priceensures that customers only pay for exactly what they use.
No freight class required
Since partial truckload shipments do not require freight class, many of the hidden fees that can be charge are eliminated. Partial truckloads have predictable costs, unlike other shipments methods subject to hidden charges and fees for things like re-classing.
Decreased risk of damage
Partial truckloads involve less stops than other shipping classes. They often require fewer stops to load and fewer stops at distribution terminals than other types of shipments. This translates to decreased risk of damage to goods.
Improved potential for on time delivery
Partial truckloads are more on time than some deliveries. Since partial truckloads require less stops they have less chance to be unexpectedly delayed.
When is shipping partial truckload the best option?
According to logistics consultant, Larry Mullne, he tells his customers at AA Logistics that shipping partial truckload is the best option when they want more control over their delivery than less than truckloads and are ready to ship more than 6 pallets at a time. That said, sometimes it is more cost effective for a company to ship once per week using partial truckload than twice per week using less than truckloads. Evaluating more than just cost of shipping with a logistics consultant is highly recommended for anyone looking to gain control over the cost of shipping goods. Larry says at AA Logistics, his main goal is to help his customers find a cost effective option that allows them to have control over their shipments and how they arrive to their end customer. For some, using partial truckload shipping is an obvious choice that meets their needs.
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Finding a reliable freight shipper that offers full truckload shipping can be difficult. With so many reports of misdelivered goods and delays in shipping, it can be hard to know which truckload carrier to trust. In addition to deliveries not being on time, the condition of the deliveries and how they packages are handled is also a top concern. It’s important to understand the advantages of full truckload shipping and working with reputable truckload carriers before making a choice and spending extra money for sub-par deliveries.
Since full truckload shipping is effective and efficient for both the freight hauler and the customer, many quality truckload carriers offer it as an option. However, some other carriers out there don’t ship as effectively and are more worried about making money on a customer. Those types of carriers may convince an uneducated customer that ineffective shipping is better for them. These kinds of freight shipping companies make it hard to know which hauler to use.
To better help customers understand how to ship most effectively, Larry Mullne, expert logistics consultant and owner of AA Logistics, has compiled the basic information a customer needs to know when they are trying to make decisions about working with a truckload carrier. With over 20 years in the field, Larry is passionate about helping freight shippers and their customers understand the most productive and cost effective way to ship their goods.
What is Full Truckload Shipping?
Full truckload, commonly referred to as FTL, is a type of freight shipping that is offered to move goods from part of the country to another. Full truckload means that the shipment is large enough to fill an entire truck or shipping container. These types of shipments usually require only one stop and one loading and unloading of the truck. There are many advantages to shipping with a full truckload carrier that are discussed later in this article.
Full truckload shipping usually requires that the shipment be big enough to fill over half of the trailer. Shipments that are not large enough to fill half of a trailer or a shipping container are usually transported using a different type of shipping. For those types of loads, less than truckloads (LTL) and partial truckloads (PTL) may be recommended. Some business owners choose to work with full truckload carriers to manage costs of their shipping, even when their trailers are consistently just slightly over half full.
Advantages of full truckloads
According to logistics expert, Larry Mullne, the advantages of full truckload shipping are for both the freight hauler and the customer. He believes that efficiency and customer service are typically more predictable when freight haulers choose to offer full truckload shipping. This alone is often enough to make full truckload shipping the best option for all involved parties but it’s still important to understand all of the advantages.
Full truck loads are less costly
Full truckloads are cost effective for both the shipper and their customer. Booking multiple shipments for smaller loads often comes at more than just the cost of multiple truckload carrier pickups and deliveries. Partial truckload shipments are on trucks with other types of goods from other companies and the time it takes to pick up a delivery at those companies can delay the delivery time and impact customer service. A negative experience with a delivery is often more costly to a company than extra shipping expenses.
Predictable delivery times
As mentioned, full truckloads only carry the goods from one destination to another. This means that the customer and the shipper are directly in control of the delivery and how long it will take to get there. This translates into full truckloads being more likely to be delivered on time and a more positive customer experience.
Less chance of damage
With full truckload shipping there is a significant decrease in chance of damage. With other types of shipping, movement and loading take place on the truck throughout the day. In some cases, the goods may be moved from one truck to another. All of those transfers increase the chance that unintended damage can occur. Full truckload shipping eliminates those fears and costs because there is no transfer, just one load and one unload.
Choosing a truckload carrier to partner with
Logistics consultants know that choosing a truckload carrier to partner with is a big choice for anyone shipping freight. According to Larry, from AA Logistics,the choice should be about more than just expertise. The reputation and the relationship that the truckload carriers have with their customers is of the utmost importance. Apart from that, he says there are a couple things to always look out for when choosing a truckload carrier to work with.
The first thing he says to look for is consistency. Reliable freight shippers will be routinely moving goods in the same direction at consistent times. This proves they have done their research and care about shipping in an efficient way. Secondly, he believes that it’s important to know what kind of materials truckload carriers specialize in shipping. His company, AA Logistics, specializes in shipping metals, alloys and stainless steel and they may not be the best to partner with if shipping refrigerated goods.
Shipping companies should be able to tell their customers where their freight is and deliver on time. Often just asking around among colleagues will give a business owner insight into what truckload carriers typically deliver on time. Vetting a shipping company and asking for testimonials before choosing to hire them for a full truckload haul can help a business owner feel more confident with how their goods are handled. This important step often makes the biggest difference when choosing a truckload carrier to work with.
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