Introducing the LogisticsPULSE Executive Briefing!

Introducing the LogisticsPULSE Executive Briefing!

In response to our customers’ requests, Logistics Plus is excited to introduce the LogisticsPULSE Executive Briefing! LogisticsPULSE™ is a new, monthly industry intelligence briefing tracking supply chain news, demand, and pricing trends. With supply chain executives and professionals in mind, LogisticsPULSE is meant to be a complimentary, value-added service for LP customers, partners, and prospects. In addition to top supply chain news and pricing trends, LogisticsPULSE introduces our unique, proprietary “Global Logistics Index” (GLI) to measure global transportation demand trends. LogisticsPULSE is created in partnership with our friends at Armada Corporate Intelligence.

You can view/download the July 2022 issue below. You can also sign-up to receive future emailed editions.

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NMFC Changes effective August 13, 2022

NMFC Changes effective August 13, 2022

NMFC-Guide-BookThe Freight Classification Development Council (FCDC) has discussed new amendments to the National Motor Freight Classification (NMFC®). These NMFC changes are effective 08/13/2022.  Some notable changes are listed below.

Subject 1 – Flat Glass; or Glazing Units, glass, not in sash – Items 86700
and 86960
Subject 2 – Loudspeakers or Speakers – Item 62420 – Changed to a Single class, 125
Subject 3 – Weatherstrips or Weatherstripping – Item 196955
Subject 4 – Fittings, electrical conduit, NOI – Item 62010
Subject 5 – Ironing Boards
Subject 6 – Glass Fireplace Guards or Screens – Item 69455
Subject 7 – Hitches or Couplers, vehicle, not wheeled – Item 192030 – Changed from a single class 70 to a full density item.
Subject 8 – Organs, Pianos, Keyboards or Synthesizers, electronic or
digital – Item 139165
Subject 9 – Beds, disappearing folding type, door, recess or wall, or
Murphy Beds – Item 79720
Subject 10 – Specifications for Wood Boxes
Subject 11 – Item (Rule) 280 and Item (Rule) 680 – Flexible Intermediate
Bulk Containers (FIBCs)
Subject 12 – Item (Rule) 580 – Labeling, Marking or Tagging Freight – The terminology and requirements in Item 580 are amended to be consistent with today’s practices.
Subject 13 – Lights (Lites) and Frames, boat porthole or deck; or Glass,
automobile or boat, including Windshields or Windshield Glass – Items 25100 and 86630
Subject 14 – Plastic or Rubber Tire Patches, Plugs or Liners – Items
157213 and 157215
Subject 15 – Silica Gel, including Silica Gel Catalyst or Desiccants –
Item 46050
Subject 16 – Mulch, horticultural – Item 138720 – Changed to a single class 70.
Subject 17 – Seats or Backs, chair or stool
Subject 18 – Chair Parts, molded paper or pulp – Item 82845
Subject 19 – Mail – Item 133940
Subject 20 – Item (Rule) 420, Sec. 3 – Explanation of the ‘0’ Class
Subject 21 – Balls, tennis – Item 15590 – Changed to two tier class item based on density of Less than 6 pcf or 6 pcf or greater
Subject 22 – Item (Rule) 680 – Requirements for Pails Unitized or Secured on Lift Truck Skids, Pallets or Platforms – amended by the addition of new paragraph 3 in Sec. 7(b), which provides detailed requirements for the unitization or securement of pails on lift truck skids or pallets.
Subject 23 – Item (Rule) 680, Sec. 9(b) – Strapping Requirements for Articles Exceeding 48 Inches in Height – Item 680, Sec. 9(b) is amended to require the use of at least two straps around the perimeter of two or more articles each exceeding 48 inches in height when tendered side-by-side on lift truck skids or pallets.
Subject 24 – Telescopes, NOI, toy or other than toy – Item 58350
Subject 25 – Manikins, medical or rescue training; or Kits, medical
training aid – Item 56825
Subject 26 – Bins, revolving – Item 82340
Subject 27 – Pads, heating, electric – Item 62640
Subject 28 – Bed Kits, unassembled, unfinished wood, including Loft Bed Kits – Item 81360
Subject 29 – Bottle Openers, NOI – Item 100560 – Changed from Single class 77.5 to a two tier class based on being less than 12 pcf or 12 pcf or greater.
Subject 30 – Pens or Markers, writing
Subject 31 – Bins, hardware, small parts storage or tool, compartmented,
steel, not thinner than 24 gauge – Item 79085
Subject 32 – Toilet Bowls or Toilet Tanks – Items 159505 and 159510 – These Items canceled and moved into Plumbing Good #158880. A full Density item.
Subject 33 – Package 1018
Subject 34 – Item (Rule) 225 – Definition of or Specifications for Pails
Subject 35 – Miscellaneous Packaging Provisions
Subject 36 – Miscellaneous Packaging Provisions
Subject 37 – Miscellaneous Packaging Provisions
Subject 38 – Miscellaneous Packaging Provisions
Subject 39 – Specific Provisions for Commodities Regulated as
Hazardous Materials – Items 12780, 14160, 14700 and 14770
Subject 40 – Refrigerants, NOI, other than gas – Item 169270 – Amended to restrict its application to materials not required by the DOT to bear a Hazard Class or Hazard Division label or placard. New Note, item 169271 is established to clarify the item’s application and to direct the Classification user to other items for classes applicable to such hazardous materials.
Subject 41 – Cancelation of Numbered Packages
Subject 42 – Cancelation of Numbered Packages
Subject 43 – Obsolete Provisions – Multiple Items
Subject 44 – Obsolete Provisions – Multiple Items
Subject 45 – Obsolete Provisions – Multiple Items

Additional detail is included in the DOCKET 2022-2 bulletin. As always, please contact us if you have any questions.

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Shippers & Logistics Plus: Let’s Innovate Together

Shippers & Logistics Plus: Let’s Innovate Together

Shippers & Logistics Plus: Let's Innovate TogetherA recent article published in Logistics Management magazine and online at Supply Chain Management Review, written by Sara Banks from Accenture, suggests a strong collaboration between 3PLs and shippers can help to bring innovative solutions that will benefit both in the future. You can read the full article here: Time For Shippers & 3PLs to Innovate Together.

Accenture’s research shows four capabilities shippers want from logistics companies. They are presented here with a note under each regarding Logistics Plus.

  • Accenture - 3PL Capabilities shippers wantEnd-to-end services. Shippers are looking for a one-stop shop for all logistics services. This means that, beyond basic logistics, they want a trusted logistics provider that delivers new services such as advisory and supply chain consulting services, analytics capabilities, e-commerce channel management capabilities, and even algorithms that match demand and supply.

Logistics Plus has evolved by both necessity and design over the past 25 years. As a company known for saying YES, not NO, to unique supply chain challenges, we’ve developed a network of solutions that span the entire supply chain, from procurement to warehousing to final mile delivery. We call this Global Logistics + So Much More. With our 3.5PL and 4PL solutions, we strive to provide the end-to-end services our customers require so that they can remain focused on what they do best: making and selling great products. 

  • Better experiences. Shippers want a logistics partner that knows their business and will work with them to overcome challenges by bringing in customer-centric solutions. Our research revealed the need for 3PLs to build service consistency, flexibility, and responsiveness to create more satisfying customer experiences.

We are hardly perfect, but there is one trait that shippers can expect when they work with Logistics Plus: a contagious passion for excellence. It’s that passion that has enabled Logistics Plus to earn numerous service and workplace awards and to have positive word-of-mouth referrals that have supported our continuous growth. It may seem like a small thing, but every one of our employees is provided a mobile phone with the expectation that our customers need and deserve flexible, 24/7/365 support. The freight never stops moving. 

  • Proactive, data-driven insights. Shippers are eager to partner with 3PLs that have data and analytics capabilities to provide visibility and insights to help them make better supply chain decisions. For example, digital twin capabilities that tap into data to simulate supply chain impacts will help 3PLs guide shippers in decisions with more certainty.

We like to point out that today, Logistics Plus is as much a technology company as a logistics company. And that is not by accident. The demands of our customers have driven us to make substantial investments in technology and business intelligence applications. Our global supply chain control towers and business intelligence tools are world-class. We know that information and insights are just as critical in today’s supply chain as are shipments and freight. 

  • Purpose aligned to their values. Increasingly, shippers are choosing to work with businesses that are more integrated with theirs and share their values. For example, in the logistics space, sustainability is a key issue and becoming a “must-have” requirement for all players.

Shippers looking to align themselves with a 3Pl focused on employee diversity and environmental sustainability will find that Logistics Plus shares those same values. The 50 country flags that fly on top of our global headquarters, each representing the nationality of one of our employees, showcase our celebration of diversity. The fact that we were the first global 3PL to receive Plastic Neutrality Certification for offsetting 19 tonnes of plastic use in 2020 is a testament to our commitment to making the world a better place. 

The notes above are just a few thoughts regarding these four capability areas that are important to shippers. Logistics Plus is ready and willing to work collaboratively with shippers to create value and share in the benefits. Contact us to learn more.

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NMFC Changes effective August 13, 2022

NMFC Changes effective April 9, 2022

NMFC Changes effective August 7, 2021The Commodity Classifications Standards Board (CCSB) has published a new supplement to the National Motor Freight Classification (NMFC®). These NMFC changes are effective 04/09/2022.  Some notable changes are listed below.

Subject 1 – Cookware, Items for cookware made of different metals and alloys were all combined into one item (52880) with a full density class grouping. 52890, 52895, 52896, and 52900 all were canceled.

Subject 3 – Detectors, Fire, Previous Items (61552 and 61555) established class based upon actual value. These items were canceled and replaced by 61550 which establishes a single class of 110.

Subject 4 – Ink, Dry Ink or Toner, Item 101740 was changed from a single class 70 to three density-based classes. Dry Ink Cartridges were removed from 116030 and added to 101740.

Subject 5 – Cables, mechanical control # 39510, Class changed from a straight 70 to a full density item.

Subject 6 – Fruits, Meats, Vegetables, and Dairy Products #76850. Density breaks and classes changed. See Revised Item.

Subject 7 – Cough Drops or Throat Lozenges, #58730, Class changed from 65 to 100

Subject 9 – Tape Friction or Insulating including electrical tape, Items 49450 and 49680 canceled and replaced with 49680 which is a full density scale.

Subject 10 – Oils, Cooking Oils and vegetable Shortening, Item 73238 revised to include Cooking Sprays. Still class 65.

Subject 13 – Door Lites, Sidelites, or transom Lites, Old item 34943 is canceled and replaced with 34250 which has 8 subs based on Dimensions and density.

Subject 14 – Bags, apparel, bedding, clothing, or garment storage, Item 20510 is canceled and replaced by 20580 which is a full-scale density item.

Subject 15 – Foodstuffs: Kernels or Seeds (pumpkin or sunflower), Kernels, and Seeds removed from Item 73238 and moved to new Item 73705 which has three classes based on density.

Subject 16 – Combs, Brushes, Crimpers, Fluters, Straighteners or Wavers; Irons or Wands, Item 61370 is canceled and rolled into Item 62290. Class on 62290 changed from 85 to 125.

Subject 17 – Bins or Shelving, Item 82360 – Bins or shelving is canceled and added to item 82270 – Metallic or Wooden Furniture, which is a full density item. Previously is it was either 150 or 70 depending upon SU or KD.

Subject 18 – Binoculars, Binoculars, Field glasses, opera glasses, etc…now a straight class 150. Class used to be dependent upon actual value.

Subject 21 – Egg Beaters, Item 100520 which was class 85 now canceled, and now egg beaters are part of Tools, hand, kitchen, NOI, a full density item.

Subject 22 – Bayonets, Swords, scabbards, Class changed from 100 to a three-class scale based upon density.

Subject 24 – Definition or Specifications for Crates

Subject 25 – Filters, cigarette, Item 69083, Class changed from 100 to 200.

Subject 26 – Explosives, Item 64300, Item amended to clarify that explosives moving under its provisions ‘must’ be transported in DOT authorized packaging.

Subject 27 – Hazardous materials, ORM-D removed since Shippers are no longer authorized to use these markings.

Subject 36 – Petroleum Xylidine, Item 155460, Item canceled. See Item 45615 – Poisonous or Toxic Materials.

Additional detail is included in the DOCKET 2022-1 bulletin. As always, please contact us if you have any questions.

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Addressing Rising Domestic Freight Prices

Addressing Rising Domestic Freight Prices

Coping with Rising Domestic Freight PricesAnyone involved in domestic transportation now knows all too well that freight rates have been skyrocketing to historic levels. According to Transportation and Warehousing produce price indices tracked by the U.S. Federal Reserve, year-over-year industry-wide less-than-truckload prices have risen between 8-14% in recent months, and full truckload prices have risen between 20-30% (and diesel fuel prices are up 27% on top of that).

The message is clear, reducing overall supply chain costs right now will be a significant challenge. In fact, in the 30th Annual Study of Logistics and Transportation Trends published in the September 2021 issue of Logistics Management, only 8.2% of shippers surveyed feel that reducing costs is a primary objective right now. That compares with 21.8% in 2020 and 29.8% in 2019. What are the new primary objectives? 20.5% say maximizing asset utilization, 35.6% say increasing customer satisfaction, and 35.6% say maximizing profitability are all now higher primary objectives.

Produce Price Indices LTL and FTL

(Click to Enlarge)

So how can shippers try to offset these rate increases as they look to maximize profitability over the coming months and year? Here are some tips from your friends at Logistics Plus:

  • Ship larger shipments less often. Even with truckload rates at all-time highs, a larger load of the product will generally ship more cost-effectively than multiple smaller loads.
  • Minimize the cubic footprint of shipments (i.e., smaller, denser) to avoid overlength, minimum cubic capacity, and capacity load charges assessed by some carriers.
  • Consolidate orders where possible to reduce unnecessary freight charges (the Logistics Plus Business Intelligence department can review your historical data to see about potential recommendations).
  • Utilize the Logistics Plus North American Division (NAD) to help spot quote some of your larger shipments. Sometimes shipments over five pallets or 5,000 pounds (as a guideline) can be spot quoted for less money if it moves in a desirable backhaul lane for a carrier.
  • Utilize regional warehousing to optimize/balance inventory to be as close to final customers as possible (Logistics Plus has multiple warehouses located across the United States).
  • Improve BOL accuracy to minimize re-weigh, re-class, and inspection fees (carriers are getting punitive on inaccurate bills of lading).
  • Improve order accuracy to minimize re-consignments and re-deliveries (don’t ship a shipment any more than you have to).
  • Consider implementing a “prepaid and add” program (if you haven’t already) to mark up your freight costs by X% and pass that on to your customers/vendors to help offset your freight costs.
  • Implement a freight invoice consolidation, auditing, and payment program to gain further visibility and insights into your freight spend and maximize recovery of refundable monies (e.g., guaranteed failures, orders paid but not tendered, address corrections, etc.).

Want to explore these and other ideas? Contact Logistics Plus, and let’s talk.

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