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Pros of Cleveland Dedicated Trucking
Companies seeking sustainability and more predictable rhythms in operation often turn to Cleveland dedicated trucking, a system of transport that ensures a truck is always there when you need one.
What is Dedicated Trucking?
Dedicated trucking, also known as dedicated freight or dedicated transportation, refers to a business arrangement where a company utilizes a fleet of trucks exclusively for its transportation needs. With these agreements, trucks are dedicated solely to serving the transportation needs of that particular business or entity.
This type of service is typically contracted through a third-party logistics (3PL) provider (such as On Time Delivery & Warehouse) or established through an in-house logistics department.
Any industry that relies on efficient and reliable transportation of goods can benefit from dedicated trucking. Some examples include:
- Manufacturing and distribution
- Retail and e-commerce
- Food and beverage
- Automotive
- Construction & heavy equipment
- Healthcare & pharmaceutical
- Hazardous materials
It allows businesses to streamline their supply chains, optimize delivery schedules, reduce costs, and ensure customer satisfaction. Shippers can work toward eliminating unreliability, which gives carriers time to eradicate those empty miles – not just for a single load, but on an ongoing basis. In some cases, shippers are reducing transportation costs, while improving customer service.
Upside of Dedicated Trucking
- Exclusive Use. With Cleveland dedicated trucking, rigs are reserved solely for the company that hires them. You won’t have to share with other businesses or general freight transportation. The benefit here is there’s always a truck available to serve the specific needs of your company, affording greater control & flexibility over transportation operations.
- Long-Term Commitments. Dedicated trucking services are in it for the long-haul. Partners in these arrangements typically sign long-term contracts between the company and transport provider. These can span weeks, but more often are months at minimum. Annual contracts are the most common. This helps ensure consistent, reliable services for your firm’s transportation needs.
- Customized Operations. Another upside to this type of trucking service is that it can be tailored to the precise needs of your company. The transport provider is working hand-in-hand with your operations manager to gain a full grasp on your delivery schedules, handling requirements, and route preferences. From there, your trucking services can be customized in a way that optimizes efficiency and meets your firm’s logistical demands.
- Predictable Capacity. When you choose Cleveland dedicated trucking, you have a dedicated truck (or more likely, fleet of trucks) – at your disposal, readily available, whenever you need. You have guaranteed, fixed access to a certain capacity for transport, which means you’re able to accurately and effectively plan transportation. Your team won’t have to worry as much about the availability or capacity of trucks that many other firms relying on LTL (less-than-truckload) must consider.
- Heightened Control & Visibility. Companies that rely on dedicated truckers tend to have better transparency within their transportation operations. When trucks are dedicated solely to serving your needs, you can more closely monitor and manage the movement of goods, track delivery times, and ensure adherence to your service level agreements and customer expectations. This is particularly important for companies bound by strict delivery requirements, tight time limits, or transport of sensitive/high-value goods.
- Improved Cost Efficiency. There’s no way around the fact that dedicated trucking services will cost more upfront. The benefit lies in long-term savings. Dedicated fleets allow shippers to identify optimal routes, eliminate empty miles, and offer their customers consistency. Plus: You aren’t paying for the investment and maintenance of your own in-house trucking fleet.
Most drivers entrusted to dedicated routes have at least one year of experience, if not more, plus a clean driving record. These jobs tend to be competitive because they offer drivers greater stability and more time at home. All this increases driver retention – which offers you additional peace of mind that your goods are in good hands.
Additional Resources:
Outlook: Shorter hauls, specialized services coming, Jan. 12, 2022, Journal of Commerce
More Blog Entries:
Faster Last Mile Delivery Logistics Should Be One of Your First Priorities, June 21, 2023, Northeast Ohio Dedicated Trucking Blog
Cleveland Public Warehousing Offers Flexibility, Scalability, and Profitability
Most businesses have periods of uncertainty. But if your operation regularly deals with swings in demand, product overflow, or changing space requirements due to promotions/new products, you may likely benefit from Cleveland public warehousing.
This type of warehousing arrangement is one in which third-party logistics (3PL) providers offer storage service fees to companies that need warehouse space, but don’t have their own private warehouse facility or they need additional capacity. Contracts can be long-term or short-term, allowing businesses to pay only for the space they need, when they need it. This helps reduce inventory waste, and saves money on labor costs.
When your warehousing company is also a 3PL, you also get the benefit of a variety of logistics and value-added services, such as:
- Transportation
- Distribution
- Assembly
- Packaging
- Labeling
- Crossdocking
According to IBISWorld, an industry research firm, the annual revenue of the public storage and warehouse industry in 2022 was approximately $35 billion – a figure that’s grown nearly 3 percent annually over the last five years. Public warehousing is overall outpacing the private warehousing sector (and in fact, the economy at-large). Increases in e-commerce – particularly in the retail sector – continue to fuel the growth of Cleveland public warehousing.
This isn’t surprising on our end, as we’ve noted similar trends here at our Northeast Ohio facility.
The public warehousing arrangement tends to work best for companies with:
- Need short and flexible contract terms.
- Are brand new to their industry or the area, and need a bit of time to determine how much space/which services they actually need.
- Experience notable fluctuations in inventory due to varying levels of demand.
- Product overflow at their existing warehouse/distribution center.
- Seasonal distribution variations.
- Supply chains that require a distribution center local to the region the public warehouse is located.
Key Business Benefits of Cleveland Public Warehousing
Faster Last Mile Delivery Logistics Should Be One of Your First Priorities
Many companies consider last mile deliveries to be the end-of-the-line for transactions. And that’s true. But last mile delivery logistics cannot be last on your list of priorities because it’s arguably the most important because it’s when contact is made with the customer. All the moving parts needed to get the package to that point don’t mean as much to the customer as the experience with last mile delivery.
The challenge for businesses is that same-day and next-day deliveries are no longer perks – but expectations.
Last Mile Delivery – Defined
Last mile delivery – also known as last-mile logistics – is the last leg of the journey. It’s basically the transport of goods from a distribution hub (such as a warehouse) to its destination of final delivery, usually someone’s home or business.
The goal is to facilitate these end user deliveries as fast as possible, while still providing exceptional service. Accomplishing this is one of the most expensive and time-consuming elements of the shipping process when you factor in labor costs, fleet costs, route optimization, and warehousing.
Fast-Tracking Last Mile Deliveries
As our Cleveland last mile delivery services professionals can explain, deliveries have been getting substantially faster in recent years. A recent report on the “State of Last Mile” revealed that the average timespan between someone placing an order and final delivery of that order went from 5.6 days in April 2022 to 4 days in April 2023.
Some shipping and logistics experts say at this point, companies need to be aiming for a 4-6 day average for end-to-end fulfillment if they hope to stay competitive.
But is it possible to speed it up even further? Industry insiders are skeptical, particularly because some of the factors that drove delivery times to excel so rapidly in the first place are waning.
The pandemic had a lot to do with why we saw such sharp acceleration of shipment and delivery times. In 2020, e-commerce sales shot up by 43 percent. Realistically, the consumer trend was heading that direction anyway.
The unique conditions stemming from the Covid-19 pandemic propelled shipping and logistics companies to invest in a number of measures to expedite deliveries at a time when fulfillment speed was crawling and demand was high.
Now that things have sort of evened out again, shippers still have:
- Broader capacity, with fewer constraints that challenged service in the early days of the pandemic.
- A diversified carrier mix, allowing them to seize on delivery providers that have a variety of advantages in various lanes.
- More warehouse space to keep inventory closer to final delivery destinations.
All this has meant consumers continue to expect ever-faster deliveries. In turn, businesses have had to prioritize quicker turnaround times for fulfillment to stay competitive. And that remains true. However, it’s unlikely we’re going to see this same degree of acceleration continuing as we have over the last few years.
Advantages of Cleveland Warehouse Value Added Services
Savvy business operators are consistently looking for ways to streamline supply chains, get greater value for their products/services, and maximize customer satisfaction. Many have discovered they can reap these rewards when they take advantage of our Cleveland warehouse value added services.
You’ve probably seen the term “value added service” tossed around while only having a vague notion of what it is or how it relates to warehousing and distribution. In short, value added services are those that bring additional value to the end user.
These can be tailored to the specific customer’s needs, and go above and beyond the basic storage and distribution functions typically expected of a warehousing partner. This is key because every customer’s goods and operational model are unique. Warehouses that offer a broad range of value added service options are best equipped to configure the optimal combination of add-ons that are going to reduce supply chain hiccups and related costs.
Examples of Popular Warehouse Value Added Services
Some examples of value added services commonly sought by our Northeast Ohio warehouse customers:
Minimize Midwest Freight Fraud by Working With Trusted Cleveland 3PL
Freight fraud has become a real problem – here in the Midwest and beyond. One of the best ways to combat cargo scams and freight fraud is by working with a trusted Cleveland 3PL provider – one with a strong reputation and real-time supply chain transparency.
Cargo theft, identity theft, and unauthorized re-brokering (or double brokering) are all on the rise.
A recent survey reported by Transport Topics revealed a 20 percent increase in U.S. cargo thefts last year, amounting to fourth quarter losses in excess of $220 million. There was also a 400 percent increase in double-brokering complaints the second half of the year compared to the first.
What is Freight Fraud?
In most cases, freight fraud involves scammers tapping into load board technology, posing as legit carriers, and gaining access to loads with little suspicion until it’s too late.
Typically, freight brokers are responsible for facilitating shipments by matching freight loads that need to be picked up/delivered with truckers who are available to do the job. A double broker is someone who uses a phony identity to post an online bid for those loads. The shipper (who owns the freight) will pay that company. The scammer then re-posts the load in that or another online forum. A legitimate trucker or broker sees it and agrees to handle the shipping. By the time the original shipper and legitimate trucker/broker release what’s happened, the funds have already been diverted to the double-broker – who’s long-gone.
Among the greatest targets/weakest links according to DAT analytics:
- Major ports.
- Highway rest stops.
- Long distance deliveries.
- Weekend deliveries.
- Electronics, beverages/food, apparel, and pharmaceuticals.
Nearly 8 in 10 brokers surveyed had lost at least some time last year working to resolve fraud-related issues. More than 6 in 10 had a direct dip in productivity as a result, and nearly a quarter had to cope with some type of legal fall-out.
Is This a New Issue?
As Cleveland 3PL providers, we recognize that freight fraud isn’t an entirely new problem in the Midwest trucking industry. It’s been a nagging issue for decades.
However, the reason it’s grabbing headlines lately is because it’s snowballed over the last couple of years as the task of matching loads to trucks has migrated online – leading to steep competition for shipments and (unfortunately) less-than-thorough background checks on the companies doing business on these platforms.
These trucking network middlemen impersonators have gotten more tech savvy than ever, and it’s a serious issue that chips away at time, resources, money, and customer satisfaction.
Although double brokering violates federal law, enforcement tends to be less than robust.
Use Falling Cleveland Trucking Rates to Boost Supply Chain Efficiencies
In the trucking world, the ebb and flow of trucking rates is a certainty in the same way as the tide. It’s just that the particulars aren’t nearly so predictable.
Currently, Cleveland trucking rates are at an exceedingly low rate. This has more than a few carriers concerned, and The Wall Street Journal went so far as to call the current situation a “trucking recession” that may be a warning of bigger problems for the economy. While we’re of course monitoring the situation closely, you don’t last this long in logistics without recognizing that demand and supply are always in flux – and smart shippers and carriers use these lulls as opportunities to improve supply chain efficiencies.
As Northeast Ohio third-party logistics providers offering trucking, warehousing, distribution, packing/kitting/labeling, and CFS services, we are fully aware that demand for on-hire (spot rate) trucks – alongside diesel prices – has been falling for more than a year.
Zoom in, and see that spot market rates in particular have nose-dived – down 77 percent between early 2022 and March 2023, according to the American Trucking Associations. (For those who aren’t familiar, spot market rates are what companies use when they’re booking a one-off truck transport of goods or when their need exceeds their regular contracted capacity.)
But this wasn’t a huge surprise. It was predicted by DAT analytics in 2021 – though in fairness, the downturn ended up being about 15 percent larger than anticipated. However, that led DAT to predict that spot rates are likely about as low as they’re going to get, so we may see them start to increase again by the end of the year.
In the meantime, that means it’s a shippers’ market. Our clients can take advantage of this moment to improve supply chain efficiencies in a number of ways. These include:
- Investment in improved operations. Getting your goods where they need to go is often a sizable expense for a lot of firms. Falling trucking rates translates to overall lower transportation costs for shippers. Those savings can be socked away for now, or they can be invested in other aspects of your operations that could use some attention – technology, labor, third-party warehousing, contracted inventory management, etc.
- Boosted capacity. The lower the trucking rates, the greater the capacity for shippers to move goods. For companies whose goods are non-perishable, they may choose to move goods now and store them closer to the last-mile delivery site before truck rates start to climb again (which, inevitably, they will).
- Negotiate lower rates. As longtime providers of Cleveland trucking services, we pride ourselves on always offering competitive rates for our valued customers. But we also recognize that trucking rate declines open the door for possible rate negotiations, particularly for spot market clients and companies whose contracts are nearly up. They might ask for faster delivery times, cargo tracking, and improved communication as part of the deal. Manufacturers and shippers can reach out to us at any point to make certain they’re getting the best possible rate for the services they need.
- Better reliability and faster deliveries. When you lock in higher capacity at lower rates, you can ensure delivery deadlines are met more consistently – leading to better customer satisfaction, brand loyalty, and competitive advantage.
The reality is that trucking – as a transportation mode – isn’t going anywhere anytime soon. It may evolve, costs may rise and fall, need will fluctuate – but it’s here to stay. It’s the current trucking rates that won’t hold steady forever. That’s why we urge existing and prospective clients to capitalize on the current rates while they can.
For more information on Trucking Services in Cleveland and throughout Northeast Ohio, you can reach On Time Delivery & Warehouse by calling (440) 826-4630 or by sending us an email.
Additional Resources:
ATA American Trucking Trends 2022, American Trucking Associations
More Blog Entries:
7 Tips to Picking the Best Cleveland Trucking Service for Your Business, March 30, 2023, Cleveland Trucking Companies Blog
What is a Freight Forwarder, and How Do I Know if I Need One?
A freight forwarder is a middleman or intermediary between a shipper and various transportation services such as carriers, airlines, and trucking companies. The central role of a freight forwarder is to organize and transport the movement of goods from Point A to Point Z through various modes of transport.
As a longtime Cleveland freight forwarder and CFS (container freight station), we recognize that the management of logistical tasks – including documentation, customs clearance, and warehousing – is often most efficiently conducted by a dedicated 3PL (third-party logistics) operator. Freight forwarders work out deals between carriers and secure the best possible rates based on the volume and type of goods being shipped. As part of our Northeast Ohio freight forwarding operations, On Time Delivery & Warehouse serves as a bridge between shippers and carriers to ensure our clients land the most efficient, cost-effective shipping solution.
How Do I Know If I Need a Freight Forwarder?
Although overall supply chain logjams have begun to ease a bit in the first quarter of 2023, companies that rely on intermodal supply chains are still turning to underutilized air terminals and sea ports throughout the country – with Cleveland, Cincinnati, and Toledo among those.
As a CFS and freight forwarder, we help our business-to-business customers with consolidation/deconsolidation of import/export freight, less-than-container loads, full container loads, product segregation, block-and-brace services, stack-and-wrap services, heavy and oversized unloading and loading, customs bonded warehousing and CFS warehousing.
Some general indicators that your operation has graduated to the level of needing a freight forwarder to handle your regular shipments:
- International shipping. If part of your operation requires import/export of goods across international borders, a freight forwarder can be incredibly useful. We have specialized knowledge and expertise when it comes to navigating complex document requirements and customs regulations.
- Complex logistics. If your shipments necessitate multiple modes of transport (land, air, sea, rail, etc.), working with an Ohio 3PL freight forwarder can help to simplify those logistics and effectively coordinate all the different service providers and carriers needed to move your goods.
- Heavy or oversized cargo. If your shipments contain heavy or oversized items that require some type of special permits or handling equipment, you can partner with a freight forwarder who can help arrange all the needed permits and equipment.
- Limited resources. Moving goods around the globe takes time, resources, and no small amount of supply chain logistics expertise. If you hire a freight forwarder to help you with these duties, you are able to turn your focus to core business operations.
It’s worth noting that an increasing number of companies (likely including at least some of your competitors) are utilizing freight forwarding services. The market for freight forwarding has grown exponentially in recent years, thanks to increasing urbanization, online shipping, and the proliferation/advancement of smartphone technologies in emerging regions. North America currently has the largest global freight forwarding market, with a 37 percent share of the market revenue as of last year. The industry’s total value is estimated to reach $285 billion by 2030.
What Questions Should I Ask a Prospective Freight Forwarding Partner?
If you’re considering hiring a freight forwarding company to help with your shipping, some things about which you may need more information to make a smart choice:
- How many years of experience does your operation have in the freight forwarding sector?
- Are there certain countries or regions that you specialize in for shipping?
- What modes of transportation do you offer? (Air? Land/Truck? Land/Rail? Sea?)
- Are you able to provide previous client references?
- Does your firm offer cargo insurance?
- What’s the process for shipment status tracking and updating?
- What are your base rates? Are there any additional fees? Are there any ways clients can help keep costs down?
- What’s your estimated transit time for shipments of my size/type/quantity? How do you handle deliveries?
- How does your firm handle problems with delays, lost/damaged goods, or disputes?
Anyone considering our Cleveland freight forwarding or CFS services can reach out to On Time Delivery & Warehouse to Request a Quote today!
For information on our Northeast Ohio freight forwarding, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Freight Facts and Figures, Bureau of Transportation Statistics
More Blog Entries:
Our Cleveland Container Freight Station Helps Customers Brace for Disruptions, March 15, 2023, Cleveland Freight Forwarding Services Blog
7 Tips to Picking the Best Cleveland Trucking Service for Your Business
Just as no two business operations are exactly the same, there is no one-size-fits-all answer when it comes to the best Cleveland trucking service that’s going to meet everyone’s needs and price point. That said, there are some common considerations that just about every company should weigh before deciding which trucking & delivery service to hire for contract transport services.
Whether your business is domestic or global, it’s fairly certain strategic freight transport plays at least some role in your success. Service industries rely on the tools and products they need to get the job done. Manufacturers need to move products fast to meet ever-increasing customer demand.
The transportation industry is what makes it all possible. Trucking moves nearly three-fourths of all tonnage carried by all domestic freight transport.
The American Trucking Associations (ATA) reports the for-hire truck tonnage index has risen nearly 3 percent just over the last 3 months, and has steadily grown each month since last year. (The index is a measure of gross tonnage of freight transported by U.S. motor carriers in any given month.) The ATA estimate that as overinflated stocks begin to dissipate, freight volumes will likely even out a bit – possibly in summer.
In the meantime, that means any Cleveland trucking service you contact is likely to be in high-demand, so you may see higher-than-average prices – something to take into account as you’re weighing your transportation needs – whether that’s LTL trucking, long-haul interstate transport, or last-mile delivery.
If you choose a 3PL trucking company, they may be able to help you identify savings with more streamlined logistics that could help offset some of these costs.
Still, given that trucking services may still be a significant expense for your firm, here are 7 tips to help you make an informed choice:
- Safety Record. Safety should be your top priority when selecting a trucking company. Increasing demands for same-day and next-day deliveries unfortunately have some operators cutting costs by purchasing run-down equipment, failing to maintain equipment, or pressing drivers to work longer than they legally should. Such practices are incredibly dangerous – a risk not only to your bottom line, but the drivers and others with whom they share the road. Look for a trucking provider with a strong safety record and a commitment to maintaining safe driving practices.
- Reputation. Check the truck company’s experience as well as their reputation online by reading customer reviews, asking for references, or checking their ratings on the Better Business Bureau (BBB). Also, ask about driver turnover. Trucking is hard work – between the long hours, stress of traffic, and time away from family (for long-haul truckers). So it’s not surprising that turnover rates of truck drivers is generally higher than in most professions. However, a Cleveland trucking company that cares about its workers will foster a strong culture of caring and fair compensation. This translates to drivers who are more experienced and safer – and service that’s ultimately better.
- Equipment Quality and Maintenance. The condition and age of the company’s equipment can significantly affect the quality of service they provide. Run-down fleets compromise safety, as well as your goods and deadlines. Look for a trucking business that prioritizes well-maintained and up-to-date equipment.
- Type of Freight and Freight Routes. Some operations are searching for basic trucking services, while others need trucks to transport their goods to shipping yards or airports -which means they need a freight transport company. Some need local, last-mile deliveries, while others need cross-country transport. This is going to be a factor in which Northeast Ohio trucking company you settle on. Not every firm offers the exact same services or routes.
- Pricing. Many factors go into trucking service pricing, and of course you want to lock in the best rate possible. As mentioned before, having a package deal with third-party logistics services and/or warehousing may help you save time and money that can offset some of your transportation budget investment. Identify a Cleveland trucking service that offers competitive pricing for the services you need without compromising on quality. Be wary of companies that offer extremely low rates – particularly with trucking services currently in such high demand. It’s an almost sure sign they may be cutting corners or using unsafe practices.
- Customer Service. Good customer service is essential when it comes to trucking. How reliable and responsive is the company? What sort of transparency do they have to allow for real time monitoring of deliveries? Look for a company that has a reputation for being responsive and easy to work with. Check their online reviews, testimonials, and referrals.
- Insurance. Ensure that the trucking company has adequate insurance coverage – and review the terms of what they cover (and what they do not) carefully before agreeing to a contract.
If you have additional questions or concerns, we’re ready to discuss them. We’re committed to giving our clients straight answers and fair deals on all trucking services. Contact us today or request a quote!
For more information on Ohio Trucking Services in Cleveland and throughout Northeast Ohio, you can reach On Time Delivery & Warehouse by calling (440) 826-4630 or by sending us an email.
Additional Resources:
ATA American Trucking Trends 2022, American Trucking Associations
More Blog Entries:
Cleveland 3PL Trucking & Transportation Services Can Reduce Your Liability Risks, Feb. 28, 2023, Northeast Ohio Trucking Service Blog
Our Cleveland Container Freight Station Helps Customers Brace for Disruptions
As a reliable, longtime Cleveland container freight station service provider, we recognize the last few years have been rocky for containerized logistics in general. COVID-19 led to a boom in containerized consumer goods demand, but this set off a wave of congestion, price irregularities, and severely restricted capacity.
Although many markets and supply chains have since stabilized, it’s important to remember that major disruptions are not the exception; more often than not, they’re the norm. There are always going to be labor strikes, natural disasters, canal blockages, sudden financial collapses, cyber attacks, political constraints, and war. And even though supply chain bottlenecks aren’t reaching the heights they did in 2020 and 2021, they still occur – sometimes without much warning. Even low-probability impacts like cyberattacks might not seem likely – but neither did a global pandemic. And many of those low-probability events are anticipated to be high-impact incidents.
Whereas container schedule delays have doubled globally, they have increased six-fold in North America, according to logistics researcher McKinsey & Company.
Working with a dedicated 3PL Cleveland container freight station partner can help companies better prepare for these sudden supply chain shifts. As third-party logistics providers who manage container freight for a broad range of customers, we have the sophisticated systems (warehouse management and transportation management) to help our clients navigate these issues in real time.
Cleveland Port Increasingly Central to More Flexible Supply Chains
A container freight station, also known as a CFS, serves as a centralized location for importers and exporters trying to receive and send shipments for their operations. Cleveland CFS operations especially have been in high demand when shipping logjams clog coastal ports.
The Port of Cleveland – one of the largest ports on the Great Lakes – has been open to import of shipping containers for nearly a decade, but still only uses about 6 percent of its full capacity as of last year. That’s changing though, for two reasons. The first is that in times of high traffic and major disruptions, containers on the East and West coasts may sit idle for days waiting to be unloaded. But there’s also the growing recognition of Cleveland’s status as a prime gateway to major Midwest markets in Chicago, Pittsburgh, Indianapolis, Detroit, Columbus, and Cincinnati. It connects 50 percent of households, manufacturers, and businesses within an 8-hour drive of the port.
Cleveland 3PL Trucking & Transportation Services Can Reduce Your Liability Risks
Many U.S. industries are subject to some type of regulation and risk – but few so much as the trucking industry. As trusted providers of Cleveland 3PL trucking & transportation services, we’re closely familiar with the extensive and constantly-evolving government rules and oversight. We’ve already invested in the necessary insurance coverage, as well as the materials, training, and policy development required to meet the high bar for best industry safety practices.
Many clients that contract with a Cleveland 3PL trucking company for transportation and distribution services recognize that not only do they save money, they’re also reducing their risk. When a Northeast Ohio trucking firm is committed to meticulously following local, state, and federal laws, it not only reduces the risk of fines, delays, and accidents, it also improves odds that insurance will pick up the tab if there is an incident.
That’s always been on the list of concerns, of course. But in recent years, both truck accident rates and insurance premiums have risen sharply. According to the non-profit American Transportation Research Institute, high-dollar truck crash settlements and inflation are the primary drivers in soaring truck insurance rates. The cost has gotten so high that some companies are going so far as to reduce their insurance coverage – which means they’re on the hook for substantial sums if there is an accident. But even as their risk of liability exposure and out-of-pocket incident costs rose, there’s still less money for qualified drivers, training, and equipment/technology investments – all of which just further exacerbates road hazard risks.
To be clear: Cleveland 3PL trucking & transportation providers aren’t necessarily going to be the sole insurance carrier in your contract arrangement. It’s critically important to review all details line-by-line in any partnership agreement you sign. But streamlined, flexible supply chains, well-maintained truck fleets, and experienced drivers are all measures we take that in turn reduce our clients’ monetary, product, and safety risks.
New Trucking Laws on the Horizon in 2023
The federal government agency primarily responsible for overseeing the trucking industry is the U.S. Federal Motor Carrier Safety Administration (FMCSA), a division of the U.S. Department of Transportation. The FMCSA is charged with enforcing trucking industry rules – including driver qualifications and hours of service, load size and weight restrictions, and labeling/delivery requirements for hazardous materials.
Beyond federal rules, some states – and even some cities – have their own trucking laws and requirements. For instance, in Ohio, the Public Utilities Commission is the agency responsible for overseeing trucking and transportation networks. State-level trucking rules have been known to tighten or relax depending on things like fuel and driver shortages. Whichever transportation services partner you choose should be in full compliance with ALL local, state, and federal regulations.
Some of the federal-level trucking laws and regulatory changes Cleveland 3PL trucking & transportation service providers are anticipating will be introduced (if not passed) this year include:
- Mandatory truck speed limiters. It’s a controversial topic, but federal authorities are expected to propose a rule this year that would phase in electronic devices that would be affixed to engines to cap truck speeds. It’s fiercely contested by trucking companies – smaller operators, especially. Some argue that arbitrarily capping the speed of trucks will lead to more potentially dangerous interactions with passenger vehicles. However, it’s worth noting that long-haul truckers are paid by the mile – not the hour – so it’s likely finances have at least something to do with the opposition. The Cullum Owings Large Truck Safe Operating Speed Act (if passed) would limit truck speed limits to 65 mph. It would also require the National Highway Traffic Safety Administration to implement regulations requiring new commercial vehicles weighing 26,000 pounds or more to set standards for speed-limiting tech, automatic braking systems, and truck crash mitigation.
- Alterations for Hours of Service (HOS). This has been an ongoing point of contention between regulators and trucking companies. HOS refers to the number of hours a truck driver can lawfully work. They were passed for good reason: Pressing tired drivers to meet deadlines by powering through fatigue while operating massive steel machines on roads shared with other motorists is inherently unsafe. However, federal regulators eased HOS regulations somewhat during the pandemic, when supply chain issues and driver shortages meant critical goods were being significantly delayed. But it’s likely those rules will once again be tightened in 2023.
- Automatic emergency braking devices. At some point, these are likely to become mandatory for heavier trucks. However at this point, Congress has simply directed the NHTSA to prioritize research on their benefit and the practicality of mandating them.
- Driver safety fitness rulemaking. The FMCSA is working on a process that would better identify and remove the drivers and motor carriers that are unfit. It’s a revision of the 2016 FMCSA standards. As it stands, there are three ways a carrier can be deemed unfit: Failure of two or more behavior analysis/safety improvement categories (known as BASICs); Having enough violations of critical/acute regulations (as identified through an investigation) that would result in a failure of 2+ BASICs; Failure of two or more BASICs as identified through on-road safety data/monitors and investigation results.
This is not an exhaustive list of upcoming trucking legislation to watch, but it illustrates the fact that there are constant changes regulation. Working with a Cleveland 3PL trucking and transportation firm can help alleviate some of the pressure to be on top of these evolutions.
If you have questions or are interested in obtaining a quote, we can help.
For information on Ohio Trucking Services in Cleveland and throughout Northeast Ohio, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
More Blog Entries:
ATA American Trucking Trends 2022, Oct. 17, 2022, American Trucking Association
More Blog Entries:
Reducing Cleveland Trucking Turnaround Times, Dock Delays, and Detention, Jan. 15, 2023, Ohio Trucking Blog