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Business Advantages to 3PL Box Truck Deliveries
If you’re managing a products company, you know that more often than not, clients need their orders as soon as possible. No matter what your industry, speedy delivery is a universally high-value service. Box truck deliveries – particularly those with same-day and next-day capabilities – can help you achieve that.
Box trucks are ideal for companies that make frequent deliveries and drop-offs and have fast turnaround times. It’s a means of reliable transportation without the trailer, allowing for easier deliveries – particularly in tighter urban and suburban terrain. Working with a 3PL for box truck delivery services can help you enhance customer service, reduce liability risk, and even save money.
What Exactly is a Box Truck?
According to the American Trucking Associations, trucks move roughly 73 percent of the nation’s freight by weight. A good number of those local deliveries involve some type of box truck.
Box trucks fairly obviously get their name from their shape: They look like giant boxes. Sometimes referred to as a “cube truck,” “box van,” “cube van” or even “rolling toaster,” a box truck is typically much smaller than a full-size cargo truck, though with many of the same positive features. It doesn’t have a trailer, which can reduce the amount of time spent loading, hauling, and unloading. They tend to be smaller than dry vans, and they’re often more affordable than larger rigs. They’re also pretty secure – and fairly safe, when driven by an experienced, careful driver.
Some businesses invest in their own box truck purchases for local deliveries. Anyone considering buying a box truck right now should know the current market is quite volatile. According to truckpaper.com, a popular site for large truck sales, a used, tandem axle, 24′ box truck is probably going to cost somewhere north of $50,000, depending on the condition and mileage. A brand new 24′ tandem-axle box truck is probably going to be around $75,000, at least – and that’s if you can find it. Most medium-sized chassis trucks are backordered until at least 2023. On top of that, you need someone trained, reliable, and insured to load and drive it. Then there are maintenance outlays, gas expenses, and more. The costs can quickly add up.
Arranging 3PL box truck deliveries is often a smarter, more cost-effective option for many companies. At On Time Delivery & Warehouse, we have the box truck fleet AND the disciplined workforce to get goods where they need to go.
Ohio Warehouse & Logistics Labor Oversight to Increase
The safety and well-being of our valued Ohio warehouse & logistics workers have always been an imperative at On Time Delivery & Warehouse.
Recently, the U.S. Department of Labor announced that given the heightened demands being placed on warehousing and logistics employees, it would be launching a new initiative to vigorously enforce these workers’ wage and hour rights and safety protections.
“The increased demand and constraints on the global supply chain have combined to place enormous strain on the nation’s warehouse and logistics industries,” the DOL said in a news release.
Regulators are ramping up federal enforcement to ensure employees are safe from harassment, paid their legally-owed wages, and are afforded proper family and medical leave in accordance with applicable employment laws. They’ll also be watching for potential misclassification of employees as independent contractors, a practice that tends to result in underpaid wages and benefits, as well as an unfair competitive advantage for companies in the free market.
Of course, the agency has had its eye on the industry for some time now. But the pandemic underscored the critical economic function of warehouse workers, truckers, delivery drivers, and other Ohio warehouse & logistics professionals. Ongoing supply chain exigencies have left more than few logistics firms scrambling to keep pace. Still, the DOL doesn’t see that as an excuse to make concessions on worker pay and safety measures. The recent announcement involves news that the agency is hiring more than 100 new wage and hour investigators – with more likely on the way.
Our Ohio Warehouse & Logistics Team is Committed to Worker Safety and Customer Satisfaction
We recognize that Northeast Ohio warehouse & logistics costs and challenges have risen in recent months, but investment in dedicated employees and their well-being is a core tenet on which our team has never compromised. We’ve had this commitment dialed in for decades, so the DOL’s announcement has no real impact on our day-to-day activities.
Meanwhile, companies that are just launching and/or struggling may want to reconsider any internal warehousing and logistics operations – especially knowing that there will be additional federal oversight and zero room to cut corners without significant penalties.
Cleveland Warehouse Devanning Explained
Cleveland warehouse devanning is a critical component of the logistics process that involves removing cargo from sealed containers. This sounds fairly straightforward, but our warehousing and logistics management experts know it’s one of the more demanding aspects of the job. Devanning incorrectly can lead to serious safety risks as well as damaged goods. Proper devanning keeps workers safe, minimizes unnecessary product loss, and keeps supply chains rolling smoothly.
Container devanning is sometimes called unpacking, stripping, deconsolidation, or unstuffing. It typically (but not always) involves goods from international shipping. Containers are received and then carefully unloaded by highly-skilled handlers, often with cranes and forklifts.
It requires not only having an adequate workforce with the right training and equipment needed to physically move the goods, but also professionals with the technical skill required to effectively manage the digital technology to ensure each item in the container is prepped and ready for the next phase. Well-practiced devanning teams spend years developing the most effective approaches to unloading different types, shapes, and sizes of containers, while ensuring maximum efficiency. If you’re looking for Cleveland warehouse devanning, make sure your third-party logistics partner has the ability to receive containers, de-van them, palletize your goods, properly store each item, and then carefully pick, load, and deliver them on demand.
The type of shipment can impact where goods are going to be devanned. In most cases, full container load (FCL) shipments are going to be devanned at the destination warehouse. On the other hand, less-than-container load (LCL) are usually devanned at the Container Freight Station (CFS). On Time Delivery & Warehouse can serve as both.
The Cleveland Warehouse Devanning Process
When containers arrive at our Cleveland warehousing facility, it’s our top priority to ensure full care and attention is paid to getting the goods safely unloaded and stored and then prepped for the next leg of the journey.
Cleveland Trucking Favored Over Rail by Shippers
Shipping companies are increasingly favoring Cleveland trucking services over rail to avoid supply chain bottlenecks and ensure on-time deliveries.
As reported recently by The Wall Street Journal, U.S. intermodal transports (which involve railroads carrying containers and truck trailers) have fallen by 12 percent in the first six weeks of 2022 compared to last year. Even as manufacturers and retailers were scrambling to import and transport goods in the last six months of 2021, reliance on rail was slipping. Even though both Cleveland trucking and railroad companies recognize the rising demand of long-distance freight transport (500+ miles), shippers are increasingly leaning on highways over railroads. This is largely thanks to shortfalls of equipment, warehousing space, and labor in rail yards – and that’s across all supply chains. This inevitably results in erratic and vexing delays for modes of transport that rely in whole or in part on rail.
Intermodal transportation does rely on trucking, but typically only for the final leg of the delivery. Under normal circumstances, intermodal transport is an effective way to move key goods. It tends to be cheaper, too. However, it’s also slower and more complicated. In an era of supply chain uncertainties, long-haul trucking has proven to be the more reliable option.
Toward the tail end of 2020 and through the first part of last year, railroads were still making considerable gains, chugging along to keep the supply chain moving. But then last summer, rail yards in the Midwest (namely, Chicago) started to see major bottlenecks. Both railroads and warehouses struggled with lack of space and too few workers. Shippers east of the Mississippi River were reporting up to 30 percent delays in container unloading and deliveries. To help resolve the issue, Chicago railroad companies imposed substantial restrictions on incoming cargo for several days. This cleared the backlog, but there were still ongoing bottlenecks at other ports across the country. Shippers, looking to make up for lost time, sought more dependable supply chain solutions to get their products out of ports and into warehouses. They turned to long-haul trucking, and they’ve stuck with it as the months have worn on.
Experts opine that since the start of the pandemic, intermodal transport has ceded roughly 1 percent of its market share to long-distance trucking. That may not sound like much, but it breaks down to about 30,000 additional truck moves a week. Truckload volumes from L.A. to Chicago are up more than 130 percent over the last year. That has increased trucking rates, but Cleveland trucking companies like On Time Delivery & Warehouse still have additional capacity. That’s a good thing considering the way that consumer spending habits have shifted the last two years from services to goods, resulting in skyrocketing imports.
Understanding Cleveland Container Freight Station (CFS) Services
With supply chain logjams on U.S. coasts expected to stretch well into 2022, shippers looking to ease the strain on intermodal supply chains are increasingly turning to underutilized sea ports and air terminals – including those in Cleveland, Toledo and Cincinnati. As a longtime provider of Cleveland container freight station (CFS) services, On Time Delivery & Warehouse is prepared to onboard new business-to-business clients for consolidation/de-consolidation of import/export freight, full container loads (FCL’s), less-than-container loads (LCL’s), block & brace services, product segregation, heavy/oversized loading and unloading, stack & wrap services, CFS warehousing and customs bonded warehousing.
What is CFS – And Why Does it Matter?
CFS is short for container freight station. These are facilities located near ports, terminals, inland container depots or major railway hubs that help facilitate import/export shipments from origin and destination. They’re particularly popular with those utilizing LCL (less-than-container) shipments because they can serve as a central hub for importers/exporters looking to ensure their goods are going to be securely stored, carefully handled, and expeditiously sent on the next leg of the journey.
Among the core functions of CFS providers:
- Preparation of container load plan.
- Stuffing and de-stuffing containers (both FCL and LCL).
- Marking and sealing containers for identification.
- Serving as a temporary storage space for cargo, empty, and laden containers.
- Moving empty containers from container yards and laden containers to nearby ports and terminals.
- Stacking, sorting, tracking, and tallying containers pre- and post-shipment.
- Organization of customs clearance procedures (examination, classification, goods assessment, etc.).
- Ensuring safety and security of all goods in the facility.
- Managing break bulk cargo (cargo that’s not in a container).
Cleveland container freight station services are essential because they help decongest air terminals and sea ports – freeing them from numerous customs clearance procedures.
As reported by WKYC Channel 3 in October, the Port of Cleveland can easily handle 100,000 containers annually. Yet in recent years, it’s been topping out well below that – somewhere between 5,000 to 10,000. Pandemic-related congestion on the coasts is spurring a shift to higher local volumes, as cargo owners and third-party logistics (3PL) firms increasingly eye smaller ports to move their goods. Cleveland is the third-largest port on the Great Lakes. Although it can’t handle U.S. Navy or cruise ships, it can accommodate vessels bound for transatlantic shipments. Plus, smaller ports like Cleveland are often more efficient – and cost effective – than the larger hubs in Southern California (Los Angeles, Long Beach and Oakland) New York, New Jersey, South Carolina, Georgia and Texas (Houston).
Teaming With Cleveland 3PL Offers Mid-sized Businesses Supply Chain Solutions
Businesses of all sizes have struggled with supply chain instability the last few years. It’s considered the No. 2 concern, just after finding and retaining qualified, reliable workers. Girding themselves for more supply chain volatility on the horizon, many mid-sized companies are strategically stockpiling inventory, allocating more funds to ensure timely deliveries, and onboarding software that allows for greater transparency. These are smart tactics for Northeast Ohio businesses – and can all be successfully implemented by teaming with a dedicated Cleveland 3PL (third-party logistics) warehousing and distribution partner.
According to the recently-released 2022 Business Leaders Outlook Survey, conducted by JPMorgan Chase, the majority of mid-size company leaders appear to be shifting from a small-business mindset to a larger one in an effort to stay competitive in the global economy. To maximize their competitive edge, more than half of respondent companies (with annual revenues ranging between $20 million and $500 million) were adding suppliers from new areas as well as dedicating more capital to higher shipping and delivery costs. One-third were changing materials or manufacturing processes, and some had even stopped working with some suppliers altogether.
More than 80 percent of firms said they had to increase wages in order to recruit and retain workers. This is a particular challenge for companies managing their own warehousing and logistics in-house – further highlighting the benefits of working with an established Cleveland 3PL.
Other top concerns for companies looking ahead this year are difficulties with forecasting, customer demands for lower costs, customer demands for reduced response times, and overall rising expectations for customer service. Well over half of companies queried are actively investing in inventory & network optimization.
As an experienced team of third-party logistics professionals, we recognize that while many businesses stress over supply chain operations, the consumer-driven approach does open the door for innovation opportunities. Running an efficient, cost-effective operation has always been a challenge – and it’s one that Ohio 3PL operators are uniquely equipped to help resolve. Among the top concerns we help clients address with Cleveland 3PL services:
Who Needs a Customs Bonded Warehouse?
A customs bonded warehouse is one that allows for storage of duty-payable, imported goods prior to them being processed and sent on to their final destination. Some are government-operated, while others, like On Time Delivery & Warehouse, are privately-owned.
But the primary differentiating feature of customs bonded warehousing versus any other warehousing proprietor is that payment for inspections and duty taxes can be deferred – in some cases up to five full years past when the date of import. Until the duties are paid, the goods must stay at the warehouse. But this allows companies to get their products “in the door,” which can mean major savings, especially when you’re up against constant supply chain instability, as many have been the last two years.
Having a Cleveland warehousing partner that is customs bonded can prove essential. As reported last month by Freight Waves, congestion at ports has meant importers who aren’t proactive in determining what will be needed – or could be needed – in terms of customs documents in preparation for inspections, etc. are running into excessive, painful delays. Utilizing customs bonded warehousing is one strategy that may help some companies better cope with supply chain snags in the future.
“Given that some of these disruptions are likely to continue into next year and beyond, companies may want to consider customs bonded warehousing as a means to just get their goods and materials in the country,” explained On Time Delivery & Warehouse CEO Anthony Figliano. “Once they’re here, we offer safe, secure storage until such time our clients are ready to retrieve them. We also provide kitting and assembly – which can even be done prior to the duties being paid. And then of course once duties are paid, we offer delivery to the next destination.”
The customs bonded warehouse proprietor agrees to be liable for goods that are under a customs bond until they’re exported, withdrawn, or removed for consumption – after the duties are paid.
Cleveland Flatbed Trucking Demand & Insights
The demand for Cleveland flatbed trucking and freight has risen substantially in recent years. Typically a service that sees seasonal surges, flatbeds have been a hot ticket item over the last two years, a trend our Ohio trucking experts opine will continue into 2022.
“Flatbed trucks have the capacity to haul a broad range of loads, from raw materials to manufactured goods,” explains On Time Delivery & Warehouse CEO Anthony Figliano. “They’re often relied upon to transport material loads that are bulky and too tricky to lift without heavy machines.”
As for why requests for Cleveland flatbed trucking services are up so sharply, part of it is the uptick in industries like construction and agriculture that often use flatbed trailers.
Who Uses Cleveland Flatbed Trucking Services?
Flatbed trucks are large trucks (between 48-53 feet long with a 48,000-pound weight capacity) that feature a flattened bed with no roof or walls. Some models have drop decks, and are typically made with a wooden platform supported by a sturdy frame of aluminum.
As an open vehicle, flatbeds are versatile and offer a host of logistics options, particularly when heavier, taller cargo is involved.
You’ll most commonly spot flatbeds in use on highways hauling things like:
- Machines
- Steel coils
- Lumber
- Long, oversized pipes
- Bailed tires
- Highway barriers
- Tow trucks and other vehicles
- Bricks
- Industrial fabric sacks (used for sand, fertilizer, seeds, etc.).
- Scrap metal
Flatbed trucks are very useful also for cargo that is being shipped or received from overseas. They can be used to move shipping containers, carrying them from inland factors or ports to sea ports, warehouses, etc.
Overcoming Misconceptions About Ohio Trucking Jobs
Many trucking companies are advertising openings for Northeast Ohio trucking jobs – increasingly finding themselves face-to-face with outdated misconceptions about what it means to be a truck driver. Some potential candidates are deterred by pursuing an occupation they erroneously perceive as a low-skill, low-education, low-wage. In fact, as our Cleveland trucking company can firmly attest, these are all myths (albeit persistent ones, unfortunately).
The American Trucking Association reports there is a national truck driver shortage of about 80,000 drivers. This has been a long-simmering issue, but it’s been exacerbated in recent months by the huge spikes in retail sales and e-commerce demands, which have led to massive supply chain bottlenecks.
Ohio trucking jobs – particularly those for heavy and tractor trailer operators – are among the 25 occupations the Ohio Department of Job & Family Services expects to have the most opening through the next seven years. Just within the last month, the Ohio Bureau of Labor Market Information reported there were 72,400 transportation jobs posted. Job ads for big rig operators are No. 2, just after postings seeking registered nurses.
Although it’s true that truckers at some companies have not had the best experiences, that’s far from the universal reality. Just like any industry, trucking and transportation has great employers, and others that fall short. Regrettably, it’s the unfavorable impressions that have been seared into the collective conscience. It’s far past time that changes. As a longtime Cleveland trucking service provider, our low turnover rate and high employee satisfaction soundly belies these assumptions.
The Truth About Northeast Ohio Trucking Jobs
The fact of the matter is that on average, entry-level truck drivers can sometimes earn double the starting salary of many of today’s college graduates. It’s not uncommon for those who pass their commercial driver’s education courses (which typically take 3-6-months) to immediately be approached by multiple job offers. Some new drivers find they’re being offered positions before their training is even complete.
Trucking is an attractive proposition for professionals – one that does require skill. Just as it is with the trades (electricians, plumbers, masons, carpenters, etc.), the commitment and contributions of truckers hasn’t historically been celebrated the way they should have been. We are however seeing a definite shift, particularly as the pandemic has highlighted how vital these professionals are to the function of daily life in this country.
Launching a New Small Business? Consider Cleveland 3PL Services.
If you’re among the millions of Americans who have recently launched a new business this year, let us be among the first to congratulate you! U.S. Census data indicates that the surge of new enterprises contains a significant number of manufacturing and retail companies. All startups (but those in these areas in particular) should look closely at the benefits of partnering with a trusted Cleveland 3PL (third-party logistics) company. A 3PL can assist with optimizing inventory management, warehousing, scalability, simplification, shipments, transparency, customer satisfaction reviews, and cost savings.
Outsourcing shipping, warehousing, and order fulfillment with a third-party logistics firm is something burgeoning business owners sometimes overlook in the early phases, primarily because many are cash-strapped and looking for any and all opportunities to save capital. However, smart entrepreneurs recognize that certain expenses are well worth the investment. Many new (and veteran) Northeast Ohio business owners see substantial benefits working with a trusted Cleveland 3PL, often right out of the gate. In fact, some operators find they can’t effectively compete in the market without one.
What Does a Cleveland 3PL Partner Do, Exactly?
Third-party logistics companies manage your supply chain operations, including warehousing and shipping. In short, our job is ensuring your products make it to your business partners/customers – intact, on time, every time.
We help facilitate the receiving, picking, warehousing, packing, and shipping. On Time Delivery & Warehouse goes above and beyond the typical storage space operation to provide:
- Heated warehousing.
- FDA registered warehousing.
- Container Freight Station (CFS).
- Centralized Examination Station (CMS).
- Import/export freight handlers.
- Product coding & packing.
- Cross-docking.
- Daily, weekly, monthly, and annual storage rates.
- Bill of lading preparation.
- UPS Standard daily.
- On-site security.
- Domestic freight handlers.
- Hazmat certification.
- Hot shot services.
- Kitting.
- Liftgate deliveries.
- Same-day & next-day delivery services.
If we don’t offer the exact services you’re seeking, we’ll point you to another trusted local provider who can.
Why Logistics Are an Important Consideration for Brand New Businesses
Very few startups have experience in logistics. This is problematic because it can impact how quickly the right goods get to the correct destination, unblemished and exactly when they’re supposed to.
Our goal as 3PL providers is to ensure your supply chain is working for you and your customers from Day 1.