FEDA News & Views

FEDASepOct2014

Issue link: http://www.e-digitaleditions.com/i/375553

Contents of this Issue

Navigation

Page 5 of 31

6 FEDA News & Views Industry Insights continued on page 23 Transportation & Shipping What You Don't Know Can Cost You Kevin Brink Director Account Development, ReTrans Freight kbrink@retransfreight.com M any of you may have noticed a decrease in capacity and on-time performance in the transporta- tion industry over the last few months, regardless of the carrier or mode of transportation you use. Much of it stems from a firestorm of changes over the last few years and the end result is a transportation industry that is currently stressed from an industrywide capacity crunch and driver shortage. In late 2013, regulatory groups made changes to hours of service laws as well as changes to driver qualifications that, upon implementation, removed drivers from the marketplace and reduced the number of hours qualified drivers can operate. Additionally, carriers have not reinvested in their fleets or operations for many years due to the economic cli- mate. Equipment breakdown and failure has caught up to the nation's transporta- tion fleet and the winter of 2013/2014 permanently removed an estimated 4 percent of overall capacity. This, cou- pled with slow but somewhat steady growing demand the last few years, has helped create the industrywide capacity crunch that is affecting FEDA dealers, foodservice manufacturers and shippers alike. The LTL segment, in particular, is reshaping itself because of the afore- mentioned market conditions—a trend that both FEDA dealers and foodservice manufacturers should pay close atten- tion to, as both groups are intrinsically tied to the LTL segment because many, if not most shipments, include something that is too large to be shipped via a small package carrier. Here's what you should know: LTL carriers are refining their equipment allocation strategies n hopes of maximizing their capacity use. They are purging freight that operates poorly, according to today's standards, and focusing on ways to generate rev- enue. Because the transportation indus- Are You Aware of The Latest NMFC Changes? In 2011, ReTrans Freight distributed a Freight Class Guide dedicated to foodservice-type commodities based on the National Motor Freight Classification's (NMFC) official classification of each commodity (at that time). While the majority of that Freight Class Guide still remains accurate, the NMFC has made changes to many commodities, both related and unrelated to the foodservice industry. Below are 12 commodities that were altered over the last three years that are pertinent to E&S dealers and manufacturers. In all cases, the classification of the commodity is now density-driven and proper B/L descriptions should be sought out and used. Refrigeration Condensers Refrigeration Evaporators (Cooling Coils or Cooling Units) Show or Display Cases Receptacles, Cans or Holders or Wastebaskets Aluminum Articles (cups, dishes, pans, plates or trays) Seats (toilet or trainer seats) Mop Wringers and Buckets, Pails or Tanks combined Cabinets or Lockers, Kitchen Cabinets, Wall Cabinets, Base Cabinets or Sink or Stove Cabinets Broilers, Grills, Roasters or Smokers Burners (furnace or commercial industrial baking) Coolers or Cooling Boxes Ice Buckets

Articles in this issue

Links on this page

Archives of this issue

view archives of FEDA News & Views - FEDASepOct2014