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Defeating Your Transportation Opponents

2012-01-27T08:43:00.001-05:00

The 2012 season is shaping up to be one of the most difficult in recent history.

There are many strong opponents on the schedule and teams that are not fully prepared will struggle to have a successful year.

Opponents like capacity, fuel prices, and driver shortage, all proved to be very difficult in 2011 and look to present even more of a challenge in 2012.

The first three opponents will prepare you for your most difficult rival, Rate Increases.

Rates have continued to rise in the last two years and if you can only defeat one opponent in 2012, this needs to be the one.

The final opponents on your schedule for 2012 are Legislation, Risk, CSA, and Equipment Shortage.

These opponents should not be overlooked; they are very dangerous and can ruin your season.

Do you want to defeat these opponents and maintain your perfect season? Request your FREE 2012 Transportation Playbook and learn how Trinity can help you defeat your rivals by clicking here!

Drivers React to Hours of Service Changes, Shippers Brace for Delays

2012-01-06T10:07:00.001-05:00

Wow how time flies! A few weeks ago we were celebrating Christmas and now the New Year is upon us. The New Year will bring many changes to the trucking industry and the first major change drivers and shippers will notice is “how time flies” when they’re delivering product to the market this year.

In 2010 the Federal Motor Carrier Safety Administration (FMCSA) proposed a change in the Hours of Service (HOS) regulations. One of the major and most controversial changes proposed by the FMCSA was to reduce driving time from 11 hours per day to 10 hours per day. The proposed change could take away a potential 300 miles a week from a driver and possibly delay many shipments. A reduction in driving time could lead to increased costs for shippers, carriers, and consumers.

“We’re concerned that the federal government is imposing too many union rules upon those who aren’t required to be in a union”, said Jay Fuoss, who is a driver that represents a carrier based in Indiana.

On December 22, 2011, after a long overdue announcement, the FMCSA released the specifics of the new HOS regulations. In the end, the proposal to reduce driving time by an hour per day failed to be adopted, and driving time will remain at 11-hours per day.

Although the FMCSA did not reduce driving hours, they have announced many other changes and updates that will have an effect on drivers and shippers.

11-Hour Driving Limit

The FMCSA will not be reducing driving time by one hour; however, drivers that do drive for 11 hours per day must have 10 consecutive hours off duty. This will help to reduce driver fatigue and will help reduce the number of accidents.

14-Hour Limit

The 14-hour limit will not allow drivers to drive beyond the 14^th consecutive hour after coming on duty. The 3-hour difference between the 11-hour driving limit and the 14-hour limit gives drivers the opportunity to complete various non-driving duties such as loading and unloading their truck, receiving required inspections, and re-fueling, as well as non-working duties such as meal breaks. After completing an 11-hour driving limit and a 14-hour limit period, the driver will be required to take10 hours off-duty.

60/70-Hour On-Duty Limit

The 60/70 Hour On-Duty limit will not allow drivers to drive after 60/70 hours on duty in 7/8 consecutive days. A driver will not be allowed to be on-duty for more than 60 hours per 7 days or 70 hours on-duty per 8 days. A driver must take 34 or more consecutive hours off duty before restarting a 7/8 day consecutive period.

Sleeper Berth Provision

Drivers using the sleeper berth provision must take 8 consecutive hours in the sleeper berth, plus a separate 2 consecutive hours either in the sleeper berth, off duty, or any combination of the two.

“They are focusing too much on safety rather than the struggling economy”, said Vlad Maksimov, who is a driver that represents a carrier based in Oregon.

Although the FMCSA did not reduce the driving time by one hour per-day, the other changes to the Hours of Service regulations have the potential to interrupt the transportation process and have the potential to increase already rising costs. Trinity’s clients have a partner to help them navigate the new regulations, locating carriers with ample hours of service to ensure prompt delivery and avoid product delays. Trinity has an extensive carrier database where we can match the right carrier that fit your needs. Experience the Trinity difference today! For more information about our services or for a quote visit http://www.trinitylogistics.com/request to have one of our sales representatives contact you.

A New Year-A New Name-Solutions Focused

2011-12-21T16:36:00.000-05:00

As we close another year, our company reflects on all that we have been able to achieve and celebrate in the past twelve months. I’m writing to you in order to personally extend our heartfelt thanks for your business, entrusting our team to serve you.

Thanks to your continued business, Trinity was able to rise above the competition, arranging over 200,000 shipments in 2011. While others in our industry were either closing their doors or being acquired by larger suppliers, Trinity gained market share and utilized our experienced team to deliver on our promise to you, logistics solutions.

Another area we grew stronger is in our vision for our future. Always striving for improvement, we listened to suggestions from our clients, team members, and suppliers. Our future strategy will leverage and build upon our strengths, and is beginning January 2012 with a name change to Trinity Logistics.

This change reflects a true representation of our business, serving as a solutions provider for our customer’s logistics needs, ranging from Truckload, Less-Than-Truckload, Intermodal, freight management with a Transportation Management System (TMS), or other designed services. The name change from Trinity Transport Inc. to Trinity Logistics will help communicate our ability to offer a variety of transportation solutions. Trinity Logistics is led by the same dedicated and committed leadership team as it has been since 1979.

We look forward to serving you as Trinity Logistics, and I welcome you to visit our FAQ’s on our website.
Customer FAQ's or Carrier FAQ's

Best wishes for a great and successful 2012,

Jeff Banning, CTB
President & CEO

Creating a Culture of Teamwork

2011-11-28T10:51:00.000-05:00

By: Sarah Ruffcorn, CTB

While Teamwork is an important aspect of any business today, it is nothing short of crucial as a third party logistics company in the transportation industry. Why? Because we have no other assets besides our people. We depend on our team members every day to represent our brand to every carrier, customer and vendor they talk to. They have to depend on each other’s knowledge and expertise to get anything done. They have to work in a very fast-paced, competitive environment where capacity is tight and it seems every customer is looking to cut freight spend.

So how do you build a real team environment in an industry as difficult as ours? Here are a few things that we do to encourage team work and promote a team building culture.

Work very hard at hiring the right people

It starts at the very beginning. The resources invested on the front end searching for the right people, investing time in a multi-level interview process, and asking the right questions is all time that you will never regret. You can’t always hire with 100% success, but you can come very close if you look for the right fit to begin with.

Have you defined what the right fit is for your organization? If not, you must start by defining the culture and people you are seeking. For example, we have what we call our “DNA Strands.” These define what we want every team member to possess and strive to be when we hire them. We continue to expect everyone to increase their knowledge and skill in each of the DNA strands. The current DNA Strand consists of 13 elements: Honesty, Ethics, Trust, Loyalty, Focus, Compassion, Servant Leadership, Wisdom, Teamwork, Creativity, Customer Service, Work Ethics, and Continuous Improvement.

We are now working on creating a Leadership DNA Strand that will represent what we look for specifically in a leader as well.

1) Train what teamwork means to your organization

As I mentioned above, in our DNA strand, we have one specific aspect of teamwork. During our orientation process, we talk specifically about teamwork and what it means to Trinity. We also have each new team member read one book in their first 90 days, “How to Win Friends and Influence People” by Dale Carnegie. This has become a staple in our orientation processes for several years now, and continues to make an impact on each team member who joins our team. The timeless principles get to the heart of what it means to influence those around you and what our expectations are as a team player.

2) Set team goals… and then have incentive plans to back it up

While you can set expectations of teamwork, it can’t stop there. The old saying goes that “actions speak louder than words” which means to us “reward the team when they succeed.” While a portion of some team members’ incentives have an individual component, there is always built-in a portion of their incentives that depend on the success of the team as a whole. We even have many team members within our operations groups that have multiple components built into their incentive that strive toward both small team goals as well as department or company goals. It is very important to make your message consistent all the way through to the root. Be sure that teamwork is a measurement on their performance reviews, as well as their paychecks.

3) Create and allow time for teams to meet and solve obstacles or brainstorm ideas across departments and locations

Nothing emphasizes teamwork more than truly encouraging collaboration across teams and departments. One way we work to accomplish this is through forming different groups and teams to be a part of solving an obstacle, or being a part of the processes to make something better. We are constantly forming different groups or teams to come up with ideas to express their creativity and knowledge with each other. Some of the groups and teams that we have formed are:

a. Wellness Committee – Helped put together a wellness plan that includes exercise classes, webinars, face screening, and other activities. Team member input helped reduce health risks resulting in lower benefit cost.

b. Tools Task Force - Creating better and faster ways for operating software to search for available equipment.

c. Vision Team – Brainstorms what team members would like to see in the future at Trinity

d. Destination Imagination Team – Creates fun activities, themes, and food for the whole company. Inspires everyone to dream and present ideas.

4) Have fun… NO REALLY, Have FUN!

I hear it from other companies all the time –

“I wish we could do more of that where I work, but we don’t

have the budget.”

“We don’t have the time.”

“We have better things to do.”

Are you kidding me? Is it really “expensive” to bring a blind fold to work, and hang some powdered donuts with string from the ceiling? This is more than “change your attitude” and “find fun in your work.” You have to MAKE some fun every once in a while if you want real teamwork. It is amazing how these memories help build relationships long into the future. So lighten up! Make it about THEM, and have some real fun. This doesn’t have to be expensive or time consuming to implement. We have found that keeping the actual celebration, game, or event to less than 15 minutes seems to bring a whole lot of fun and a great break (and buzz) in the day. Just find things to celebrate!

Birthdays

Springtime

Goal benchmarks

Company anniversaries

Department spotlights

Find someone in your team who is creative (if you aren’t) and encourage people to get a little crazy from time to time. Put on a crazy costume and flap your wings for hot chicken wings. It does every soul some good when you hear laughter echoing in the halls. Watch some real life examples at www.youtube.com/trinitytransport

5) Most importantly, have a leadership team that believes and encourages a team environment

Do you believe that? Really? I am sure some of you are saying to yourself, “Well of course, that is a no brainer.” Trust is at the heart of any real team, and that starts with leadership. I would challenge you to think hard about your leadership team, and rank each of the players on a scale of 1-5 on their team building skills. It goes without saying that if you don’t have leadership who can do this well, it will be very difficult to create a culture throughout your company that can do this. So get the teamwork category added to THEIR performance review! Each organization has a purpose, and we working hard to fulfill our purpose in everything we do to “continually improve people’s lives by constantly striving to be our best”. I truly want this culture for my friends, for my family, for you, for your team and company and I hope that one of these ideas will find its way to your project list and actually affects just one piece of your business, inspiring you and your team to grow. If you have some fun things you do, or thoughts to contribute in addition to what I have mentioned above, I would love to hear from you so we can learn from you.

Sarah Ruffcorn is Vice President of Strategic Development at Trinity Transport, Inc., Seaford, DE. Her direct line is (888) 899-3935 or you can reach her at sarah.ruffcorn@trinitytransport.com.

Our DNA is Our Foundation

2011-11-21T08:32:00.000-05:00

The foundation of any structure is always its most important element. During times of distress, the foundation will be the organization’s leaning point; its saving grace. Then again when victory has been achieved, its success can most often be traced back to its foundation. The same concept applies here at Trinity Transport where our “DNA” holds fast as our resolute foundation.

A new employee at Trinity Transport is immediately immersed into an environment of strong morals and dedication to service. The atmosphere is literally contagious and its traits are composed in what is called our DNA. Continuous Improvement stands at the top of our DNA strand. As a mid-sized company, we have a heart-warming family-based touch, supported by a large spirit. We strive to make everyday better than the last for our customers and carriers.

For example, the capacity crunch that recently hit the transportation industry affected our overall structural layout. It caused us to explore different options within our service process so that we could continue to meet and exceed our commitments as usual despite the capacity trend. From employees volunteering to work on weekends to switching over to an entirely new computer system, we made the moves that needed to be done to ensure that we would get our job done in typical Trinity style. We will move that challenging load for our customers and we will get our carriers to their viable destination; the show must and will go on!

“Continuous Improvement” is just one strand from our DNA that is grouped along with our passionate commitment to Customer Service, Teamwork, Servant Leadership, Focus, Trust, Honesty, and the rest of the 13 traits you see displayed. Working cohesively together, our “DNA” has carried us through these tough economic times and has strengthened our resolve for the future. We are confident that anybody that gets involved with us through any aspect of our various resources would feel at ease because of our unyielding and steadfast foundation.

Trinity puts the CUSTOMER in Customer Relations

2011-11-14T08:42:00.000-05:00

By: Dan Dobson

Director of Customer Relations
(866) 807-5800

I’m often asked how Trinity can be considered unique in an industry that is basically driven by rates and availability of equipment. There are hundreds of companies out there that do everything we do (at least on paper), including making the claim that they are “customer driven”, “customer oriented”, or all “about the customer”.

In early 2010 we put our “money where our mouths were”, establishing a Customer Relations Department that is focused solely on ensuring that our customers truly know how much we value them.

Amid the day-to-day stress and strain of your business, time is short to discuss services we are providing you, if it’s what you want, and what else you need. Customer Relations at Trinity pledges to keep in touch with our customers regularly and ask the questions that perhaps go unasked to make certain you are being served in the best and most thorough way possible.

How do we do this? A.I.P. is how!

We let you know that we Appreciate you by initiating every phone call with a simple “Thank You” for entrusting us with your business. Making sure you know we genuinely value you and your business is the primary reason for my call. Were it not for your business, we would not exist!

Talk is cheap, we go further. In order to Indemnify, or ensure you remain a loyal customer, we ask questions about your experiences with Trinity. This gives you an opportunity to freely discuss concerns. We also make sure you are totally aware of all the services we can offer you beyond those you are currently utilizing. And most importantly, we act on what you share with us.

Protecting involves Trinity watching trends, nuances, and changes in the transportation industry and making sure you are made aware of them as soon as we can get the information to you. We’re looking out for you, that is our way of being much more than a “vendor or provider”. It is Trinity as a resource to whom you can turn to for trusted advice.

Phone a friend! Call my direct toll-free line (866) 807-5800 in order to gain my willing ear to listen to your suggestions on how Trinity can improve, serve you better, and become the resource you may desire. You may also email me dan.dobson@trinitytransport.com.

How to Beat One of the Most Common Budget Busters

2011-11-08T11:03:00.000-05:00

By Brian Kenney, VP TCL Division

As the leaves begin to fall and the temperatures to drop, many companies find themselves heading into the final quarter of their fiscal year reviewing their 2011 budgets and planning for 2012. During this process, especially with transportation costs on a steady incline, many of these companies may also find themselves facing the unpleasant prospect of a smaller bottom line. However, by understanding their transportation costs as a percentage of their revenue and the negative impact this could potentially have on their bottom line, companies may be able minimize the impact in order to realize greater profits.

Understanding Your Transportation Costs

If you are looking to understand your transportation costs as a percentage of your revenue, it is important to first understand what is considered an acceptable range. Transportation costs should typically be between 3-8% of your revenue. If your freight spend is 3% or less, then you are doing a great job managing these costs. If you fall within the 5-8% range you are doing well, but you may still be able recognize additional savings. Anything over 8%, however, is a cause for concern. When your freight spend becomes such a significant percentage of your total revenue, it starts to have a negative impact on your bottom line. To put it in perspective, if you average $1million in annual sales, imagine the impact paying or saving an additional $10,000 a year in transportation could have on your bottom line.

What are your costs?

In order to determine your transportation costs as a percentage of your revenue, you must first know what your transportation costs are. While this sounds relatively obvious, many factors could actually make this a rather complicated undertaking. For example, many companies rely on email and spreadsheets to manage their transportation so the ability to generate this type of reporting is pretty much nonexistent. In addition, some companies roll their transportation costs into the price of their product and have no way of separating this out within their current system. As a result, many companies are not sure how much they are spending on transportation.

Detailed Reporting

Detailed reporting is required to truly determine how much you are spending on freight. If you cannot determine what percentage of your sales is being spent on transportation, then you may want to consider budgeting in a TMS or ERP system that can provide you with this type of functionality. The long-term benefits will far outweigh the initial upfront costs. Having detailed reporting will allow you to take the appropriate actions whether it is looking for efficiencies to offset the increases to your transportation costs or working with your sales people to sell your products at a higher price. Determining your true freight costs can drive actions that can have a major impact on your bottom line.

If you are not sure where to start or would like some help analyzing your costs send me an email at brian.kenney@trinitycustomized.com and I would be happy to work with you.

Need a Morale Boost?

2011-10-28T08:35:00.001-04:00

By: Hilary Sisk

Talent Acquisition Assistant

What is morale? Morale is the confidence, enthusiasm, and discipline of a person or group at a particular time. Having a good morale in the workplace is essential for enhancing productivity and making your job more enjoyable.

There are countless ways to help boost your employee morale and set a positive tone that can be very cost efficient. Listed below are some tips on how your company can reach positive morale.

Celebrate

Recognizing special events in the lives of your employees such as birthdays and hiring anniversaries. These are both milestones that we all enjoy to be recognized for. If you have a reason to celebrate, do it! Whether it’s finding a greeting card for everyone to sign, or decorating the employees’ office for the occasion, it will not go unappreciated.

Recognize

Recognize and reward your employees for doing a job well done. Each month we recognize an employee from both our support and operations side. These candidates are given compliments by their co-workers and or supervisors throughout the month. When the month comes to an end, we wrap it up by selecting a few candidates to vote on. Once votes are tallied, we then present the winners with a gift card award. They are recognized on our intranet, and their picture is hung on our MVP wall of fame.

Appreciate
Appreciate each department for their hard work. Each month we pick one week and chose a department within our company to appreciate. During that week, we pick three days to incorporate different activities and tokens to show our appreciation to them. We make it enjoyable and entertaining for all who are involved.

Fun Times
It's always important to have fun. Once a year we pick a date and take a much needed trip to New York City for the entire day. We extend the opportunity for our employees to invite family or friends for a small fee. This is an opportunity for our employees to let loose and relax around those they associate with on a daily basis.

Innovate
Implement new programs for the employees. This year we are trying something new to help get our employees motivated. We are offering webinars, onsite events, and fitness classes after work hours, to tie in with our Wellness Program.

By incorporating these recognitions and programs into your workplace, employees will feel much more appreciated and you will start to notice a boost in productivity as well as a more enjoyable work environment.

Trinity Begins Environmental Project

2011-10-25T09:07:00.000-04:00

Neighbors of Trinity Port Services in New Castle, Delaware will benefit from a new initiative that will improve air quality and reduce odor and noise in the greater community. The project demonstrates Trinity’s support of greener achievements as an EPA Smartway Partnership member, as a partner in the American Chemistry Council’s Responsible Care® program, as well as creators of the official Trinity nationwide corporate purpose statement. “To continually improve people’s lives by constantly striving to be our best” is the underlying drive for Trinity’s participation in these and other initiatives to come. The project is made possible by an agreement between the Delaware Department of Natural Resources and Environmental Control (DNREC) and E.I. DuPont de Nemours Co. (DuPont), which required DuPont, as a condition of its Delaware Coastal Zone permit with DNREC, to fund a project that offsets air pollutants from two new boilers at DuPont’s Edge Moor facility in Wilmington.

As the offset project, DNREC proposed a project at Trinity’s Roger Road site near the Port of Wilmington that replaces 20 diesel generators that power refrigerated storage containers with electrified outlets, significantly reducing air pollutants in the area by up to 120 tons annually. Trinity Distribution Services in conjunction with their Port Services division had initiated the project concept in an effort to incorporate their corporate interest in ways they can reduce impact on our environment. DuPont agreed to provide $225,000 to replace the diesel generators and an additional $25,000 to fund technical and administrative oversight of the project by the Clean Air Council through its diesel pollution reduction program.

On October 6^th, 2011, the installation project of the electrified outlets began, and could take up to six months. Once completed, the Clean Air Council, along with Trinity, DNREC, and DuPont, plan to hold an event celebrating the project and the environmental benefits to the community.

About DNREC

The Department of Natural Resources and Environmental Control’s mission to ensure the wise management, conservation, and enhancement of the State’s natural resources, protect public health and the environment, provide quality outdoor recreation, improve the quality of life and educate the public on historic, cultural, and natural resource use, requirements and issues.

About Clean Air Council

Clean Air Council is a member- supported, non-profit environmental organization dedicated to protecting everyone's right to breathe clean air. The Council was founded in 1967 by a group of forward-looking community leaders, policy makers, and progressive business leaders. Headquartered in Philadelphia, the Council made a name for itself by the mid-1970s as the result of two major achievements: establishing and distributing a daily regional air quality index report (still used to this day); and forcing Pennsylvania to implement its vehicle emissions testing program. The Council has now grown to include 8,000 members and expanded its programmatic focus to include children’s environmental health, energy, climate change, waste and recycling, and transportation.

Trinity Topics

2011-10-20T16:21:00.000-04:00

Are you interested in learning about how to avoid unforeseen LTL charges? Or how Trinity puts the customer in customer service? If you are, check out our newest bi-annual newsletter, known as the Trinity Tropics, which includes many helpful tips and industry news!

In our newest issue of the Trinity Topics, learn how you can reap the rewards by harvesting Trinity’s logistical knowledge. Find out what you need to know about the transportation industry, how to choose the “best” intermodal transportation provider, how Trinity is “going green”, how to boost company morale, and much more!

The Trinity Topics newsletter is published twice a year; once in the spring and once in the fall. The Trinity Topics contains various tips, hints, and industry news geared towards shippers and carriers, to help provide you with the information that you need to succeed.

To read the Trinity Topics click here

Tips to Avoid Unforeseen LTL Charges

2011-09-27T09:00:00.002-04:00

By: Pam Hunwardsen, CTB

Logistics Manger, LTL Division

Over the last few weeks, LTL (Less Than Truckload) carriers have begun announcing general rate increases. Fortunately, there will be virtually no impact to Trinity customers from LTL carriers taking general rate increases. Trinity has negotiated agreements with the majority of LTL carriers we do business with that are not subject to general rate increases. Our negotiated agreements take into consideration our nationwide volumes to secure some of the best possible pricing in the marketplace. Trouble is, we can provide the best possible pricing on the shipment, and you can still end up with extra charges on the invoice! No one likes surprises, least of all involving money, so listed below are some tips to help avoid unforeseen charges on LTL invoices.

Be Ready!

Like truckload, the LTL carriers have begun charging for called in pickups and they are not given the freight when the driver arrives. These charges vary with each carrier from $30 to $100 each time they attempt to pick up freight. It’s important to communicate with the shipping facility to coordinate the correct pick up date for the freight to avoid this charge.

Details Details Details

Give all of the details about your shipment needs upfront to avoid surprise accessorial charges, even if you aren’t sure if it’s pertinent to the conversation. Does it require a delivery appointment, do both ends of the shipment have a dock or is a liftgate required for the delivery, etc? These requirements can result in extra charges from the LTL carrier but knowing the details from the start could also make a difference in the choice of the carrier, lining up one that doesn’t charge for a service you require for example. All LTL carriers have different rates for the “extras” and some of these charges are negotiated in our tariff pricing. Be patient when we ask a lot of questions, we’re using our experience to avoid costly surprises on your behalf!

What’s it Worth?

What is the value of the freight? The liability for spot quote freight is only $1.00 per lb but we can also offer coverage (shippers interest insurance) to make sure the value is covered in case of a claim. This is a valuable product at a reasonable charge to ensure the freight is covered. LTL freight moves through their system by stopping at many terminals and changing trailers before it reaches the final destination. It does not stay on one trailer. Volume freight does not have a guaranteed delivery date and can require additional days in transit as the freight moves as capacity is available.

Don’t Fudge the Weight

When shippers do not have scales at their facilities, it could be tempting to give an approximate weight. Trouble is, the freight could be reweighed by the carrier. This also results in additional charges not only for the extra weight but also a charge for the reweigh “service”. Know the weight of your pallet, and if you don’t, expect the price fluctuation.

Don’t Guess the Class

Know the class of the freight and have it on the bill of lading along with the NMFC number to avoid inspections. If you’re uncertain, talk to our LTL team about the commodity so our experts can guide you. The worst thing you can do is guess or rely on “what’s always been used before”. LTL carriers can and will inspect the freight to invoice for the correct class, resulting in higher charges!

The important thing is to lean on your Trinity representative, ask questions about the freight and the LTL process. It’s our job to deliver solutions and education, use us as your resource. It may seem inconvenient but it could save you many surprise charges in the long run.

Ten Questions for Interviewing Freight Brokers; A Shipper's Perspective

2011-09-16T09:11:00.000-04:00

By Brandy McMullen, CTB
Director of Marketing

As Americans look hopefully to the future, battle weary from the recession, companies are seeking ways to find cost savings in order to combat the erosion of profit margins. More and more, companies are dissecting their expense reports in order to discover hidden profits within their logistics expense. One method being employed to trim the amounts spent along the supply chain is to build a relationship with a freight broker, commonly referred to as “3PL”, or “Third-Party Logistics” suppliers.

By working with a freight broker, you are borrowing their expertise that often takes several decades to build in order to generate significant cost savings in your logistics budget. A good broker is on the front line of trends, not only their industry, but other main industries depending on their core competencies. Brokers are able to quickly ascertain which mode of transportation is best for your freight, and can offer recommendations based on seasonality, capacity, and even the weather to guide you to attaining your logistic goals. Depending on their size, you can benefit from their buying power, commanding far better rates based on their volume. These are only a few advantages to working with a 3PL, so for those of you who are starting to nod their heads in agreement, I want to point out the top 10 questions to ask when you’re choosing a freight broker to suit your needs. These are critical to making sure that you will maximize your savings while minimizing your risk!

1. May I have a copy of your brokerage authority? Always verify the broker is operating under legal authority given by the FMCSA (Federal Motor Carrier Safety Administration), whom licenses all transportation intermediaries. Don’t be fooled by motor carriers who are offering to broker your freight without proper authority to do so. Trinity’s authority is available online for customers to download on our website, www.trinitytransport.com/documents

2. How many years have you been in business? This is an indicator for the longevity of the business, and shows a measure of the type of experience and expertise you can expect from them. For example, Trinity is celebrating its 33rd year in 2012 as a privately owned family business, offering decades of knowledge and service to customers and carriers.

3. What is your dispatch process like? Be weary of brokers that just fax carriers the details of your load, handing off the entire process. It’s almost as if they’ve washed their hands of it! At Trinity, our dispatchers are communicating along every step of the process, speaking directly with the drivers to dispatch them to your facility, and following up to make sure they loaded and delivered on time. We are managing the load and ensuring customer service!

4. How many employees do you have and how many offices? It’s doubtful anyone will admit to being a “one man operation”, but you want to make sure they have enough resources to properly service your account. Even if your freight is regional, you should look for a broker with nationwide presence. In doing so, you’ll ensure that as your company grows, you won’t have to wait for the broker to “catch up” when you begin to move loads outside of their region. Trinity has over 90 offices nationwide and over 200 team members to give customers the advantage of our expansive network in all areas of the country.

5. What are your carrier pay terms? They should share information on how quickly they pay the carriers, and their financial strength, but you should always run your own credit check to ensure their claims. The last thing you want to have to do is explain why you had to pay a freight bill twice to your superiors. Trinity offers each contracted carrier quick payment, load advances for fuel, and direct deposit, allowing them to choose for themselves how quickly they’d like to be paid.

6. What steps do you take to ensure carrier compliance? Make sure they are checking each carrier for proper authority, insurance, and their CSA Scores. Also, make certain they have contracts with the providers. Good brokers that perform due diligence protect you against potential lawsuits. Trinity has an entire team of professionals to facilitate this process, it’s that important!

7. What associations do you belong to? First and foremost, you want to make sure they are members of the ethical Transportation Intermediaries Association (TIA). Other associations, such as the Better Business Bureau, are icing on the cake! You want to work with a freight brokerage firm that’s committed to marketplace ethics as a reflection of your company’s image. Trinity is a member of TIA along with many other reputable associations. We’re also past recipients of Better Business Bureau Torch Award for Marketplace Ethics.

8. What types of services do you offer? Say no to one trick ponies! You need a freight broker to call whether you’re moving a truckload, a pallet, a rail box, or an ocean container. When you can make that one call and forget about it, you’re able to get back to your business. Trinity offers a wide scope of services so our clients can make one toll free call to get their freight delivered, no matter which mode required.

9. May I have your shipper and carrier references? Think back to your last job interview, when you were asked to provide references. You put your best ammunition out there, didn’t you? Freight brokers will too, of course, but when you call the reference, make sure to ask about their best and worst experiences with the broker. If you can deal with the worst and are excited by the best, you’ve found a good match!

10. May I have a copy of your surety bond and insurance certificates? You should have these in hand before working with any freight broker. The $10,000 surety bond is required by law for all brokers, providing protection for carriers in the event that a broker fails to pay freight charges. Most brokers carry contingent cargo as an added layer of protection for shippers, and some even carry liability insurance. Trinity recently increased our surety bond to $250,000 for additional customer security! We’re also believers in insurance policies, carrying a million in general liability, auto liability, ten million in excess liability, as well as $500,000 in worker’s compensation.

Each of the ten questions considered individually won’t provide a healthy indicator of the strength of the freight broker, but when grouped together in the set of ten, you begin to gain a healthy image of the broker. Creating an alliance with a freight broker can help achieve lower costs, higher profit margins, and an ally in the fight for survival in the tough economic market we’re facing. When chosen carefully, a good freight broker can be your greatest competitive advantage, and I promise you, your customers will feel the difference.

For more information about Trinity’s services, contact brandy.mcmullen@trinitytransport.com or call (800)-846-3400 x3935.

National Truck Driver Appreciation Week

2011-09-12T10:51:00.000-04:00

This week is National Truck Driver Appreciation week! It takes one, one Driver, one truck, and one week. We would like to say Thank you! In celebration of National Truck Driver Appreciation week, Trinity is hosting a video contest for the chance to win $1000.00

Trinity would like to recognize all the hard work and commitment of our nation's truck drivers by having you send in nominations of drivers that you think deserves the title of “Best Truck Driver”. Drivers can even nominate themselves! Your entry will be judged on creativity, personality, and the reason why the driver nominated should be named the best. The last day for submissions will be Friday, September 16th, and the winner will be announced on Monday, September 19th. The Winner of the contest will win $1000.00!! For complete rules and how to send your nomination video visit www.trinitytransport.com/truckercontest.

How to Choose the “Best” Intermodal Transportation Provider

2011-09-08T16:23:00.002-04:00

By John Patton
Vice President, Intermodal Division

This is a question that many customers ponder on a daily and weekly basis. If you are a shipper or manufacturer utilizing intermodal (transport by train) as a means of moving your freight, no doubt you already have a list of items that you consider when selecting the “best” intermodal provider. Humor me and please keep reading anyway, I may possibly add one or two items that you haven’t considered in the past.

What’s an IMC?

First, let’s discuss what an “IMC” (Intermodal Marketing Company) is today versus what they were in years past. Many years ago when intermodal movements were just beginning on the railroads, the rail carriers quickly realized that it was very difficult for them to “retail” their service directly to potential customers. The railroads were accustomed to dealing with a shipping public with locations on their property with rail tracks running direct into their facilities! These were customers that moved grain, paper, lumber, steel, and automobiles as a few examples of the commodities that worked well for the rails. There was untapped opportunity for new shippers and manufacturers to move their freight by train, but they didn’t have to be located close to the railroad. In fact, many rail customers are several miles from the nearest railroad tracks.

IMCs (Intermodal Marketing Companies) started popping up around the country, providing marketing and sales for the railroads. Railroads readily accepted the IMCs’ help for marketing and selling their intermodal service! Originally the functions and responsibilities of an IMC were very limited. Over time those responsibilities have changed greatly to the point they not only provide sales, pricing, and marketing, but are also responsible in many cases for securing the container to move the load as well as the draymen to pick up the load at origin and destination. The IMC also provides one other key function today they didn’t provide in years past, and that is customer service.

The #1 Differentiator
Customer service is one function that truly differentiates one IMC from another. Some intermodal marketing companies have nearly eliminated the customer service function, relying heavily on cheap pricing to secure freight for shipping intermodal. I strongly recommend you consider customer service as a required function whether you’re renewing intermodal contracts, doing spot quotes, or just starting to move your freight by train. Let me paint a picture for you. There are only a few “Class I” railroads left in the United States and Canada, in fact only two Class 1 railroads in the West, only two in the East, and one in the Midwest. This means all of your intermodal freight will move on one of these five railroads and you’ll likely experience either good service the rail carriers provide, or you’ll suffer from issues the railroads are having. These include wash outs, derailments, hurricanes, mudslides, etc.

The element that separates the great IMC from the poor IMC is how well they communicate the issues with you, the customer, and how that may affect your movement on a train. Many IMCs simply provide an online tracing tool, leaving it up to the customer to find out if any delays are going impact their shipment. Other IMCs will have automated faxes or emails broadcast to the shippers with very generic information about the issues. The “best” IMCs will create the type of communication you value. They will offer the online tracking combined with a personal touch and contact when you prefer it, letting you know about the issues that might affect your pick-up or delivery, and also offering alternatives when solutions are needed. They keep your freight and your best interests at the forefront of every conversation and interaction.

Asset Based or Non-Asset Based
Another consideration when selecting an IMC is to weigh the importance of being an intermodal asset owner or a non-asset owner? While this is an item that certainly differentiates the IMC’s, this element should not be one of your main deciding factors on which IMC you select. There are several excellent IMCs that move a lot of volume on trains do not possess intermodal equipment. Being an asset based IMC will provide only a small amount of leverage on pricing. I have heard many asset based carriers make the sales pitch that their company is better than company “XYZ” because they own assets, thus they have the ability to guarantee equipment for all shipments. The downside is the asset based IMC is more concerned about “turn times” or “trips per month” on their assets than they are about providing good customer service to you. The IMC without assets in most cases has access to just as many intermodal containers (in some cases even more), but if solely focused on your needs and serving the best interest of your shipment rather than their equipment. This is certainly an item that differentiates IMCs, but I feel it should be weighted very lightly when choosing the “best” IMC for your needs.

All Aboard the Green Train
Issues are affecting our environment, the fact is not surprising anyone reading this blog. Chances are your company has even launched a “go green” initiative, whether it’s recycling office paper or joining the EPA’s Smartway Partnership. Moving your freight by train will result in a tremendous reduction in the carbon emissions into our atmosphere. When you are looking for the “best” intermodal provider, this is an item you should certainly consider. Are they a member of Smartway, do they have active programs in place to help the environment today and tomorrow?

Where Do You Rank?
Another element that certainly tells the story about an IMC is their current client base. Who do they currently do business with? Several IMCs tout that 80-85% of their volume and revenue comes from 10% of their customers. What this tells me is how much they like doing business with very large companies. Other IMCs prefer to do business with small to medium sized customers so their distribution of volume and revenues are spread over a much larger customer database. Typically the IMC catering to smaller clients has a natural knack for making the smallest customer feel just as important as their largest customer. Which type would you prefer to deal with? Who would you think values your business more?

Continuous Improvement
The final deciding factor on how to select your best IMC involves the dreaded word “change”. There are many IMCs that are happy with the way things are now, while others are continually looking for ways to embrace change, either in processes or technologies. They’re doing this in order to improve how they are doing things for the betterment of the customers (for you)! I will certainly concede that change for the sake of change isn’t good, but change for improving service to the customer is something that differentiates a complacent intermodal provider from one striving to be the best.

It is my sincere hope that the list of items above will stimulate some thoughts for you the next time you need to move an intermodal shipment. No doubt you have noticed that I didn’t include much in my blog about price. Trust me, leave it on the bottom of your decision criteria and you will be able to select the “best” long-term intermodal provider for your business needs without concentrating on price.

For more information on Trinity’s intermodal division, email or call me (866) 811-4312. Also check out our other blog on why you should ship intermodal, moving your freight by train.

What Management Needs to Know about the Transportation Market, Part Three: Legislation

2011-09-06T08:37:00.001-04:00

By Brian Kenney, VP of TCL

There are several major pieces of legislation that will have a major impact on transportation that you should be aware of.

CSA 2010- CSA went into effect in December of 2010 and was designed to make the roads safer by measuring the performance of trucking companies and the individual drivers that they work with. It is still unclear how much of an impact CSA will actually have on the industry, but industry analysts believe as many as 200,000 drivers could lose their jobs as a result of the new regulations. Some of these drivers should probably be taken off of the road, but many of them are just going to be victims of circumstance. The more you drive the more likely you are going to be to get into an accident or get a speeding ticket. There are going to be many experienced professional truck drivers that are no longer going to be able to make a living driving a truck. These are drivers that have experience handling your freight and driving trucks in bad weather. Many of these experienced drivers are going to be replaced by drivers with no experience.

When someone is driving 80,000 lbs on a highway at 65 mph you want that person to have as much experience as possible.

As a result of CSA, experienced drivers with good scores will be in high demand and will be able to act as “free agents”. Good drivers will be able to demand higher wages, which will eventually be passed on to shippers. You can check out the FMCSA website for more information about CSA http://csa.fmcsa.dot.gov/default.aspx.

Hours of Service
(HOS)- There will be a final ruling in October of 2011, but it is believed that the biggest change will be to reduce the number of driving hours per day from 11 to 10. This does not sound like a lot, but many shippers operate on regional distribution models and reduction of just one hour per day could devastate many of these models. Over the course of a week a driver may drive over 300 miles less which would have a big impact on that driver’s pay. Drivers will want to be compensated for the lost wages. In addition this will require more trucks on the road to move the same amount of freight that is being moved today. Additional trucks on the road would cause even more congestion to the nation’s roadways causing additional traffic which could result in lost hours for drivers. In a market that is already in the midst of a severe driver shortage, a reduction in driver’s hours would be devastating and extremely expensive for shippers, carriers, and consumers.

Electronic on board recorders (EOBR)- There is a potential legislation that would require all carriers to install EOBR in their trucks to replace their paper log books. Currently, log books are utilized by drivers to record their on/off duty times. It is widely believed that drivers take certain liberties with their paper log books that allow them to drive a few extra miles. However if EOBR legislation is passed when a driver reaches his allotted hours he will lose his ability to drive. If the driver continues to drive without hours then this will have a negative impact on the driver’s CSA score. There has also been talk of the EOBR being connected to law enforcement. The FMSCA currently is requiring carriers/drivers in certain cases to install an EOBR as part of their corrective action required and many carriers are also proactively installing EOBR devices to regulate their drivers. In my opinion EOBR would be the biggest game changer to the transportation industry since the trucking industry was deregulated in 1979. Every minute that a driver has to drive will become more valuable and the penalty for holding a driver up will also become more substantial. Detention charges will most likely go up and will be charged after a short window. Stop off charges on multi-stop loads will also go up.

The bottom line is that transportation costs are going up and will continue to do so for the foreseeable future. Carriers are in control of the market and chances are you need them more than they need you. The good news is there are things that you can do to offset the cost increases you are seeing on your freight spend. A good place to start is to review your transportation personnel, process and technology. If the people handling your transportation do not know what CSA is then you have room for improvement. If your processes for handling transportation have not been reviewed or updated recently then you should probably take a look at them since the transportation market has gone through several major shifts in the last four years. If you are using spreadsheets, faxes, emails, and phones to manage your freight you may want to look at some transportation specific technology. Your ability to quickly load and unload carriers will become extremely important going forward. The bottom line is that you need carriers as much if not more than they need you right now. The shippers that treat their carriers as a valued partner will be able to overcome the challenges of the transportation market.

LTL Carriers: Rate increases and what they mean for your business

2011-09-01T10:54:00.001-04:00

By Clay Carpenter
Vice President of LTL Operations
Connect with me on LinkedIn

Over the last few weeks, LTL (less than truckload) carriers have begun announcing general rate increases. UPS Freight, ABF Freight, Con-way, and A Duie Pyle started the ball rolling by announcing general rate increases in the near future. Historically, once a major LTL carrier announces a general rate increase, all other LTL carriers follow in fairly short order. I expect most major LTL carriers to either announce or implement rate increases sometime over the next 45 days.

Fortunately, there will be virtually no impact to Trinity customers from LTL carriers taking general rate increases. Trinity has negotiated agreements with the majority of LTL carriers we do business with that are not subject to general rate increases. Our negotiated agreements take into consideration our nationwide volumes to secure some of the best possible pricing in the marketplace.Why are LTL carriers doing this? Two reasons, mostly. First, they are managing their capacity as the demand for their equipment increases. Second, it's a clear attempt to improve their earnings, reversing the losses most of them incurred at some time over the last few years. It's their business to turn a profit, but it's Trinity's business to shield and advise our clients.

We will track and report increases as they are announced and verified in this blog and comments section which will be updated periodically as more carriers announce and or take price increases. If you have heard of such an increase, feel free to share that in the comments as well, along with the amount of increase.

Carrier	Announced Increase	Effective Date
A Duie Pyle	6.90%	August 1, 2011
AAA Cooper	6.70%	August 15, 2011
ABF Freight System	6.90%	July 25, 2011
Con-way Transportation	6.90%	August 1, 2011
DATS Trucking	N/A	August 15, 2011
Estes Express	6.90%	August 15, 2011
FedEx Freight	6.75%	September 6, 2011
Holland	6.90%	August 1, 2011
New Century Transportation	N/A	August 8, 2011
New England Motor Freight	6.90%	August 8, 2011
New Penn Motor	6.90%	August 1, 2011
Oak Harbor	6.90%	August 1, 2011
Old Dominion	4.90%	September 6, 2011
R & L Carriers	6.90%	August 15, 2011
Reddaway	6.90%	August 1, 2011
Roadrunner Transportation	6.90%	August 1, 2011
Saia	6.90%	August 22, 2011
Southeastern Freight Lines	6.90%	August 22, 2011
Southwestern Motor Transport	6.90%	August 1, 2011
UPS Freight	6.90%	August 1, 2011
Vitran	6.90%	August 15, 2011
YRC, Inc.	6.90%	August 1, 2011

What Management Needs to Know about the Transportation Market, Part Two: Cost

2011-08-29T08:32:00.000-04:00

By Brian Kenney, VP of TCL

It is simple supply and demand. There is more freight than there are trucks.

After losing so much capacity during the down turn, the demand will continue to be greater than the supply for the foreseeable future, even at the anemic growth rate of the economy. Some carriers are looking to expand their fleet size to capitalize on additional opportunities, but that is not the case with most carriers. Even an increase to the current rate of expansion by existing carriers will not provide any relief for the capacity shortage.

Rates continue to increase on both the line haul (point to point rate) and the fuel surcharge (FSC). Line haul costs have gone up dramatically in the last two years after haven fallen to their lowest point in ten years during the peak of the recession. Many full truckload carriers have increased between 5-10% in the last two years and in certain niche markets like flatbed rates have increased even more. The seasonal rates that are impacted by produce have seen even greater increases and many reached an all time high in 2010 just to see those records broken again in 2011. These rate increases are not something that is limited to the full truckload segment of the industry. Intermodal rates have increased in the last few years as well.

Intermodal rates have gone up to reflect the increase in demand for this service.   After seeing a decline in volume during the recession, intermodal business has bounced back in the last 18 months. Many months have shown double digit increases in month over month volumes. Small increases in the economy and the tightening of the truck market have been the driving force behind the resurgence of intermodal business.

The increases in general intermodal rates have not been as high as truckload rates and have probably averaged between 3%-6%. However, during peak intermodal season, usually between late August and December, rates will spike and capacity becomes very limited. Intermodal is considered a less costly alternative to over the road transportation and many times rate increases are kept in check.

Many times intermodal will prove to be a cheaper alternative to over the road transportation on the front end, but you need to be aware of the accessorials involved with intermodal. Detention in the intermodal world will usually be applied after less waiting time and is typically more expensive than with over the road transportation.

The costs in the less than truckload (LTL) market have also gone up. LTL carriers have been raising their rates by 5%-7% per year over the last two years and there are rumors that some LTL carriers will be taking another increase in early 2012. If certain LTL carriers do take another rate increase in February it would be the 4^th rate increase in about 24 months. Several major LTL carries have also taken steps to reduce their fleet size by consolidating operations and closing terminals. These actions have reduced capacity, which has helped the LTL carriers justify their repeated cost increases.

Line haul rates are only a part of cost increases that you are paying to move your freight. Fuel surcharges have almost returned to their pre-recession levels. In the summer of 2008 we saw the average cost of diesel reach $4.76 per gallon. In May of 2011 it was up to an average of $4.12 on per gallon. Most fuel surcharges are either based on a percentage of the line haul or per-mile based on the cost of fuel. For instance, if the average price of fuel was $3.851 your percentage would be 28.5% or $.046 per mile. In this example the percentage would go up .5% for every $.049 that the fuel price goes up. The per-mile FSC would go up $.01 for every $.06 that the cost of fuel went up.

So if average price of fuel went up to $3.93 next week then your percentage would be 30% or you would be paying $.047 per mile. If you take into account that fuel prices are up about $.90 from where they were at this time last year you are paying 18% or $.15 more in FSC depending whether your FSC is based on percentage or per mile.    These line haul and FSC increases previously mentioned refer to contractual rates. If your pricing comes from the spot market you have probably seen much larger increases.

If your company buys transportation on the spot market you have probably seen your rates increase by as much as 25% in the last two years. I would strongly recommend that you look into moving away from the spot market if at all possible. The spot mark costs you more in the long run. Most spot market rates are given with line haul and fuel surcharge combined into a flat rate. Many times this means the total cost is rounded up to a whole number. This is a big difference from contractual rates with a varying fuel surcharge.   Let’s say you had a dry load moving from Chicago to Boston and contractual rate was $1.50 per mile on 990 miles with a fuel surcharge of $.35 per mile.

Your total cost would be $1831.50. If you asked for a spot market quote on that load your rate maybe $1850. If you are looking for a truck in a difficult market or maybe you need a load moved on a Friday your quote could be as high as $2,200 for that same lane. The idea of requesting a spot market rate is to get the lowest rate possible for that one load. However, many times you can get a rate from a transportation provider, but that does not necessarily mean that you can the truck you need for the rate. In the current market you need to be worried about getting the freight moved first and the cost second. http://blog.trinitytransport.com/2011/07/do-you-want-rate-or-do-you-want-truck.html

The cost of transportation is going up and many of the factors driving the increases are out of your control. However, there are many things that you can do to offset these cost increases.

Look into making your processes more efficient. If you can streamline processes you can save time and increase the productivity of your staff.
Incorporate technology into your transportation. Email and spreadsheets can do many wonderful things, but they are not the best tools available to manage transportation. Many companies have ERP systems that may have transportation functionality available or you can look into a Transportation Management System (TMS).
Invest in transportation industry training for your team members that are responsible for moving your freight. There are many transportation industry events and associations that can be a great resource for your team members. Even subscribing to transportation trade publications can be a big help. If you are not spending money on the front end to make sure your people know what is going on in the transportation market you will end up paying more in rate increases and transportation service failures on the back end.
Look into outsourcing your transportation. If your transportation is handled by someone without a transportation title, such as someone in customer service, sales or purchasing you may want to explore the benefits of outsourcing your transportation to a 3PL. Allow your employees to focus on their main responsibilities and allow transportation experts to help you streamline your processes, incorporate technology, and manage your costs.

To read the first part of this blog, click here: What Management Needs to Know about the Transportation Market, Part 1: Capacity

Stay tuned for Part 3: Legislation coming next week.

What Management Needs to Know about the Transportation Market, Part 1: Capacity

2011-08-22T08:44:00.000-04:00

By Brian Kenny, VP of TCL

Transportation may not be high on your priority list or even on your list at all, but you should probably make some room for it. You need to pay attention to the transportation market because costs are continuing to increase and capacity continues to tighten. This means it is getting more expensive and more difficult to get your freight to your customers. You may have customers that will fine you if your product does not arrive on time or they may even cancel your contract over repeated transportation issues. I know that many companies view transportation as a cost of doing business, but if you are not aware of what is going on in the transportation market then you probably have not been able to make the necessary changes to keep your costs in line. In general, your transportation costs should be between 3%-8% of your sales. Anything higher than 8% means that your transportation spend is probably cutting into your bottom line. If you do not have a lot of free time to spend learning about transportation, but you want to be aware of what is going on in the market, then you should focus on these 3 main areas—capacity, costs, and legislation.

Part One: Capacity

Capacity is the biggest factor that any company should be concerned about. Currently there is a major shortage of equipment as a result of the great recession. Between 2007-2010 over 5,000 trucking companies went out of business and over 380,000 trucks were taken off of the road. That is about 7,900 less trucks available on average per day in the 48 continental states. Certain segments have been hit harder such as flatbed, while other segments such as tankers have not been hit as hard. But overall capacity is not where it needs to be to meet the current demand and all indicators point to it getting worse.

Drivers are also in short supply. Many drivers have reached the retirement age and have/will be leaving the driver pool. In addition to retiring drivers, many drivers are being forced off of the road by the new CSA regulations. CSA went into effect in 2010 and we have only just started to feel the potential impact. As a result, many trucking companies are looking to replace drivers that they have lost and are not in a position to expand. Even with a 9% unemployment rate carriers are still struggling to recruit new drivers into the industry. Being a professional truck driver is not a career for everyone and many people are not interested in a job that may require them to live in a truck for weeks at time. As a result many trucking companies have started to offer sign on bonuses to try and attract new drivers. They are also offering bonuses to try and lure experienced drivers away from the competition. These bonuses will eventually be passed on to shippers as part of their line haul rates.

The same scenario is true on the equipment side. During the recession many carriers had to hold onto tractors and trailers longer than they normally would because they could not afford to replace them. However, most carriers are now in a position to replace their older equipment and this sudden spike in demand for new tractors and trailers has been met with mixed emotions.

Many truck and trailer manufactures reduced their production capacity during the last several years and are now struggling to meet the demand for new equipment. As a result there is a 6-9 month backup for new equipment orders. The spike in manufacturing of new equipment has also been slowed by a lack of raw materials. The sudden demand and short supply for certain raw materials is causing the price of new equipment to go up—another cost that will be absorbed by shippers. Keep in mind that this surge is being led by a push to replace aging equipment and not by a push to expand fleet size. So, even if a carrier wanted to add 100 tractors to their fleet they cannot just go to the dealership and pick them up.

Many carriers are not interested in expanding their fleets because the current capacity situation allows them to control the market and generate their desired profit per truck for the first time in several years. Most publicly traded carriers have been reporting great earnings in 2011. http://wallstcheatsheet.com/stocks/transportation-stocks-delivering-explosive-earnings-growth.html/.

A few quick actions you can take to see what impact transportation is having on your bottom line.

Determine what % transportation is of your total sales. If you are over 8% then you probably need to make some changes. Even if it is between 6-8% , you still can probably make some changes to your processes/personnel that can save you some money.
Examine the way drivers are being treated when they come to your facility. Many drivers have final say on which loads they haul and one of the factors that they will use to determine what loads they take or don’t take is past experience at the pick up or delivery location. If drivers are treated well and get loaded/unloaded quickly then drivers will accept loads that involve your location. They may even request your freight. However, if drivers are treated poorly and have to wait a long time to be loaded/unloaded then you will be paying more to get carriers to come to your facilities, paying detention when you hold them up or even risk drivers refusing loads that involve your company.

For more on capacity, visit our blogs:

Stay tuned for the next installment of this blog when we talk about cost increases in the transportation market

TMS Deployment: Is it better to wade first or dive right in?

2011-08-04T16:38:00.005-04:00

By Chris McAvoy, Director of Operations, TCL Division

A couple weeks ago I had family visiting from out of town, so we decided to go to the beach. Even though the outside temperature was 95 degrees with a heat index of.. .oh I dunno…400 or so, the water temp was surprisingly chilly. After playing in the sand with my niece for about an hour, I needed a dip in the ocean to cool off. Was I going to do an all-out David Hasselhoff a la Baywatch dive into the water, or would I dip my toes into the water, slowly immersing myself? I went the latter route, slowly entering the water like a wimp until a nice big wave decided it was tired of waiting for me to get wet.

When it comes to transportation management system (TMS) deployment, companies are often wondering whether they should dive in head first, or test the waters with one or two facilities before completely soaking themselves with a full-scale implementation. So what’s the better option? It depends on a few factors.

First of all, how deep is your knowledge of your current transportation processes across locations/divisions? Just because each distribution or warehouse location is part of the same company, it doesn’t mean they share the same transportation processes. If you have a strong understanding of the processes of warehouses 1 and 2, but warehouses 3 and 4 are anybody’s guess, then it may be best to test the waters with just facilities 1 and 2. If you’ve already taken the time to map out the processes for all locations, then you may be ready for a full-scale approach.

The other thing to consider is the level of buy-in from all identified stakeholders in the TMS deployment. Are they all for the new system and accompanying improvements in processes, or are they dead-set on keeping things the way they are? If you’ve only received buy-in from key personnel at one or two locations, then it may be best to test deployment at those facilities. Chances are that a successful deployment at one or two locations will help you get that much needed buy-in from those facilities that are the main resistors to change.

Finally, you’ll need to consider whether the technology can support a phased deployment approach. Is the TMS flexible enough to get additional locations up-and-running quickly after initial implementation at your test warehouses? Is it customizable enough to support the differences in processes across locations? Can the technology vendor or 3PL provide the flexible service options and pricing structures that are needed to support a phased approach? The answers to these questions will have an effect on your ability to test the technology at select locations.

These are just a few things to consider when deciding whether you should take a full-scale approach to TMS deployment, or whether it may be better to first test the waters. An analysis of your internal processes, levels of buy-in from company personnel, and review of system capabilities will help you select the best approach.

By the way, the next time you’re at the beach…..keep an eye on those waves.

"Putt Fore Life" Golf Tournament

2011-07-25T10:55:00.000-04:00

The 8th Annual “Putt Fore Life” Golf Tournament will be held August 27th at Sussex Pines Golf Course in Georgetown, Delaware, with a tee time at 10 a.m. The tournament is a charity event to raise money for the Trinity Foundation, a non-profit organization founded in 2005 by the employees of Trinity Transport, Inc. In 2010, the golf tournament succeeded in raising over $19,000!

Special thanks go out to our top sponsors so far for 2011, including Sussex County Federal Credit Union, Nanticoke Memorial Hospital, Trinity Transport, Salisbury Door and Hardware, and Prewitt & Son Trucking, ARM Transport, Johnny Janosik, Scotts Furniture, Archer Law, Edward Jones Investments, Mid-State Insurance, Service Tire Truck Center, Chamber Motors, with more expected to follow.

The Foundation uses the annual pool of funds to focus donations to two main causes. These are the American Cancer Society and the American Heart Association. Other community support is provided to other worthy community causes such as the DE Teen Challenge, Sussex County Foster Parent Association, and The Tomorrow Fund to name a few.

Our 2011 focus is to host 120 golfers and find generous sponsors to collectively meet our goal of $20,000. The cost to play in the tournament is $100.00 per player and sponsorships begin at $125.

Players will receive a gift bag, round of golf, and a chance to win many other prizes. There will also be food followed by awards.

If you are interested in playing with a team of 4 or sponsoring the event, please visit www.ttifoundation.org or email foundation@trinitytransport.com

What is the Magic Number?

2011-07-15T13:18:00.000-04:00

By Brian Kenney, Vice President TCL

Can you remember when gas prices first reached the $2.00 per gallon mark? What about diesel? Do you remember how you felt about it? How would you feel today if you could buy gas for $2.00 per gallon? Regular unleaded gases prices first passed the $2 per gallon mark during the week of May 24, 2004. Diesel did not cross the mark until the week of September 27, 2004.

I remember thinking “What the…??” when it happened. At the time I was commuting about 70 miles a day to work and I had to fill up my tank about twice a week. I equate the feeling to having to pay $4 for bottled water a sporting event. You feel like you are getting ripped off and there is nothing you can do about it. I guess the difference is when you go to a sporting event you know that you are going to be paying inflated prices for everything and you are mentally prepared for it. However, I wasn’t mentally prepared for that feeling when I went to the gas station.

The week before gas broke the $2 mark it was at $1.97, so it wasn’t like the cost went up $.50 in a week, but there is a big psychological difference between $1.99 and $2. It is like buying something for $19.99 instead of $20.00. At $19.99 it is a deal, but at $20 it is not worth it. The terror of $2 gas only lasted about 2 weeks before it fell back down under $2 per gallon. Gas prices stayed below the $2 mark until May of 2005 and kept climbing after that. I remember when I realized that $2 gas was here to stay, I actually started searching the web for the cheapest gas and sometimes would drive out of my way to save $.03 per gallon. I remember waiting in line 5 or 6 cars deep to save a total $.18. After that I gave up on trying to save money on gas and I just accepted the fact that this was going to be the way it was.

$2 gas was nothing compared to what happened in 2005. During the first week of January 2005 gas was at $1.74 per gallon. By the fall of 2005 gas prices rose over $1.25 per gallon and broke the $3 mark for the first time after Hurricane Katrina. Gas prices dipped after that, but never below $2 per gallon. In 2008 we saw gas top out at $4.05 and diesel at $4.76 a gallon. If $2 per gallon was the “What the…??” price, then what is $4 per gallon?

The price per gallon is only part of the stigma; the real horror is the total cost of filling up your tank. For most people $20 to fill up your tank is a great number. At $20 you are not concerned with the price of gas and most of us would probably be happy with a $30 fill up at this point. But when you are filling up the tank and watching the cost pass $35, $40, $47, $59, and finish out over $60, it is truly a horrifying event. It is like the first time your kids ask you where babies come from or that they tell you that they want to marry Justin Bieber. It is a very scary thought and one most of have to deal with every week.

So what is your magic number? When does the cost of gas not bother you and at what price does it keep you up at night? Send me an email and let me know. Brian.kenney@trinitycustomized.com

Do You Want a Rate or Do You Want a Truck?

2011-07-12T11:32:00.001-04:00

by Brian Kenney, VP Trinity Customized Logistics

Many shippers treat transportation as a commodity and buy it on the spot market every day. In the current transportation market these shippers have noticed that the price of this commodity has continued to go up.   A significant reduction in capacity during the last few years combined with an increase in fuel costs and an increased demand for transportation services has driven the prices up dramatically in the first half of 2011.

Most carriers have benefited from increases in rates and increases in demand for their services. As a result, carriers have options that they did not have last year. Carriers can now pick the freight that works best for them from both a pricing and destination stand point. Carriers no longer need to take “cheap” freight just to get their trucks moving.   If you look at the publicly traded trucking companies you will notice that the majority of them are doing very well right now. They have been able to partner with shippers that understand the current market and realize that they need to pay for consistent, reliable transportation partners.

Carriers are not the only people taking a stand against “cheap” freight. Many brokers/3PLs have seen an increased demand for their services and have decided to use their resources to service customers that understand the market and are willing to make a commitment to them and not just shop for the lowest rate on every load.

If you are that shipper that rate shops for transportation every day to get your freight moved you need to ask yourself, “do I want a rate or do I want a truck?” Many carriers and brokers will still provide you with a rate, but when someone provides you a rate, that does not mean that they can provide you a truck. If your plan is to go with the cheapest provider every time, you are inevitability going to end up paying more in the long run. Chances are that a broker will provide you with the lowest rate and take your load hoping to find a truck at a price that allows them to make a few bucks. If they can’t find a truck they will call you up at the last minute and give the load back to you. At that point you no longer need a rate, you need a truck. The majority of people that provided you with rates initially either no longer have capacity for your load or want a higher rate because of the short notice. No matter what, you are paying more to get the load moved.

Before you contact a carrier or broker about moving your next load, remember that you are looking for a truck and not a rate. Trucks are required to move freight and rates are just numbers on your computer screen. The transportation market we are indictates that shippers need to start treating transportation as a service and not a commodity.   It is important that you create a partnership with your transportation providers. You have to make a commitment to them at a fair market rate and allow them to service your business. Saving $5 on a load today is not worth a lack of loyalty from your carrier base. You will recoup that $5 numerous times through a strong partnership with your carriers. Carriers and Brokers will take a hit or go the extra mile to service a customer, but they will not to service a rate shopper.   A strong partnership between a shipper and a carrier is based on value and not based on price. Take the steps to become a preferred customer to your transportation provider before you find yourself without any responding to your rate requests.

Freight agents; consider these 10 factors before finding your home.

2011-07-01T08:30:00.001-04:00

By: William L. Banning, CTB
Senior Vice President, Agent Operations

As a freight agent, you’ve worked your tail off for many years in the transportation brokerage industry. You’ve watched your friends and relatives enjoy their nights and weekends, while you tirelessly work the phones 60+ hours a week. You have a loyal and stable customer following, that you’ve had to fight tooth and nail to keep at times. You have an entrepreneurial spirit and want to run your own brokerage as an Agent for a reputable company, or you’re tired of being taken for granted and not getting the service you deserve from your current brokerage company. If this sounds like you, then this was written for you.

There was a time when it was taboo for a freight broker to have an Agent office model, these days it’s very trendy and a successful Agent has dozens if not hundreds of options on whose shingle they can hang outside their door. This article encompasses what I feel a good, solid, professional Transportation Brokerage Agent should look for in the company they want to partner and entrust their livelihood with.

Ten things you should consider when deciding which Transportation Brokerage/3PL to partner with:

1. Culture. Culture is everything. How are you made to feel when you walk through the doors or when someone answers your call or email? Warm and fuzzy or cold and prickly? The way you are made to feel is a direct reflection on how your customers and carriers will feel when they look to your prospect company for help.

2. Financial Stability. Don’t take for granted, and definitely don’t take the headhunter recruiter’s word for it, that your prospect company is financially sound. Don’t be afraid to ask them to see the following (you have every right to see this information):

Income statement: This gives you a snapshot of how efficiently the company is being run. Are they in the black or the red? Are they not only profitable, but delivering a healthy profit?
Balance sheet: If the income statement is a physical, then the balance sheet is a full body CT scan. How much debt and equity do they have? Is it a healthy 2:1 debt to equity ratio? Are the owners re-investing the profit back into the company in retained earnings and reserves? Or, are they pilfering all of the profit?
How much operating capital (cash) do they have? It takes a lot of cash to float a multi-million dollar receivable, often for weeks at a time. Banks are becoming increasingly vigilant in ensuring the institutions they loan to have the collateral and the viability to warrant a large line of credit. Banks will pull financing – one day there, next day gone.
A current Dunn & Bradstreet report on their company: This is the financial scorecard that people you do business with will be looking at.
How do they handle Accounts Receivable? Do they keep their delinquencies at a manageable level (<5% over 60 days)? Are their collectors well trained, professional and courteous? Or is their A/R strung out and un-managed?

3. Additional Services. In order to stay competitive in today’s market, a Broker Agent must be able to offer his or her customer more than just domestic, spot market trucks that pick up at pt. A and go to pt. B. You need to be educated to offer viable solutions for your customers Logistics challenges, to include multiple modes of shipping. Your competitors are offering solutions, so you need to be positioned to do so as well. Services you should expect your prospect Broker company to provide you for your customers:

Domestic, Canadian and Mexican Truckload Services
Conventional LTL pricing with name brand carriers. Both spot market and customer specific tariff pricing
Wholesale door to door Intermodal service
Door to door international shipping service
Logistics outsourcing / consulting and Software As A Service (SAAS) Transportation Management Systems (TMS). High level logistics management solutions

4. Risk Averse / Risk Prone. Companies in the 3PL / Transportation brokerage industry in this day and age must be able to balance their risk, especially since the definition of risk has changed drastically in the past few years.

Risk averse companies tend to shy away from opportunities that may have some risk associated with them (difficult lanes and commodities or a customer with less than perfect credit history).
Risk prone companies throw caution to the wind every day and will do business with anyone, anywhere, anytime, regardless of the risk associated with them.

You should look for a company that finds the ‘sweet spot’ healthy combination of risk averse and risk prone. You can do this by asking them the right situational questions.

5. Reputation. This is a ‘very small’, large industry we work in. Word travels fast with customers and carriers if a broker has shady practices.

Look the prospect company up on the credit reporting sites with the major load posting services.
Make sure they are a TIA (Transportation Intermediaries Association) member and check them out on the TIA’s Watchdog service.

6. Claims and Bad Debt Liability. Who will assume the liability if something goes wrong?

If the broker approves the credit, do they accept the liability if a customer goes belly up and doesn’t pay their bill? Or do they push the liability back on the Agent?
If a legitimate claim happens and it’s no fault of the Agent, does the broker accept liability or do they push all the liability back on the Agent and the carrier?

7. Carrier Compliance policies. Litigation, liability and CSA 2010 have changed the game. When it comes to litigation and tying liability for a carrier’s actions back to a broker or shipper – the game has changed significantly in recent years. It is extremely important that the prospect company have stringent Carrier Compliance policies and the technology in place to ensure they have accurate information on each carrier at all times. A sizeable broker’s carrier list can exceed 30,000 active carriers, so the workload and logistics of managing this database is immense, but critically important that it’s 100% accurate and up to date at all times.

8. Operating System. A good, solid, and intelligent operating system will not only serve as an order entry system for you, but it will give you the tools you need to make intelligent business decisions, streamline your workflow and improve efficiency in your office.

Does their operating system protect your confidential customer information from other Agents or offices within the company?
Does their operating system give you the tools to analyze current lane analysis, historical carriers, pricing and allow multiple modes of shipping (TL, LTL, Intermodal, International, etc) ?

9. Commission Rates. Beware the “snake oil” sales tactics of headhunter recruiters offering high commissions. Many of these recruiters are commission based, and are very aggressive in their recruiting efforts. If it’s too good to be true, it probably is. Ask a lot of questions about their commission settlements, are there any hidden charges or fees? What is their chargeback policy? Ask to see all of this in writing, and make certain its part of your contract. Spoken promises are impossible to uphold. A good rule to live by is if it’s not in writing, it never happened. Get it in ink!

10. What’s The Plan? A well managed and efficient company that is sustainable and has what it takes to survive the challenges of our industry will know how to ride out the ebbs and flows of our complex economy and will have a plan. It should be a good plan that is forward thinking, looking out 6 months, 1 year, and 5 years. Ask to see their plan, read it, and draw your own conclusions.

Does it revolve around solving yesterday’s problems?
Does it revolve around looking into the future, being innovative, and blazing the trail?

The Transportation and Logistics / Brokerage industry has been plagued for many years with people and organizations that run unscrupulous or unethical operations, but there are also solid and ethical companies in our industry. This article was written to help the serious and professional Transportation Broker Agent make the best decision on which company to align with and to call your home. Make sure you align with the right one; it could be one of the most important decisions of your life. Trinity Transport has been in the Transportation Brokerage business since 1979, and a huge part of Trinity’s success has been due to a successful Agent business model started in the late 1980’s. If you are interested in talking to Trinity about our Agent service or simply would like an un-biased free sounding board – feel free to contact me.

Email Billy
Connect with Billy on Linkedin

Learn more about Trinity's Agent Program
(800) 763-2028

How to Measure Carrier Performance

2011-07-01T08:00:00.000-04:00

As a freight brokerage operation, Trinity arranges the transportation for approximately 15,000 shipments per month. When it comes to monitoring the service levels of a trucking company, we've heard and seen it all (and lived to tell about it)! Our freight management clients benefit from this hard earned expertise when Trinity helps guide their carrier performance measurement process using our transportation management system (TMS). However, even if you don't have a web based visibility tool such as ours, it's important to create some sort of system in which you are able to track not only the factors, but also the monetary impacts of them. Here are some of the factors you should consider when organizing your own structure. These will help ensure you're seeing an accurate portrayal of your selected providers' service in order to make the most informed decisions when routing freight.

Do they own a clock?

How much did you have to fork out in overtime pay to dock workers when the truck showed up past shipping hours for the pickup? Think about when that delivery you were expecting for your "just-in-time" facility came in so late that your assembly line was shut down. How much labor and lost production was wasted waiting on the truck? Tally up the revenue lost when your customer cancelled the order they'd been waiting too long on. Don't forget the dollar figures associated with your customer's satisfaction, especially if you've actually lost customers due to a trucking company's problematic reliability. It will hurt to see it, but go ahead and calculate the lifetime value of that client and factor that into your metrics when measuring shipping services.

The invoice says how much more?

You agreed to a price, but the invoice arrives, and guess what? It's different than what you agreed upon! Hidden fees, overcharges, and billing errors are often overlooked as metrics used to analyze a carrier performance, but they are important to monitor. If a carrier has provided a rate sheet or a quote which positions them deceptively lower than the competition only to hit you with extra accessorial fees, you may have been better off working with the other carrier who submitted a higher price, delivered on time, and submitted a correct invoice. Don't panic if you lack the structure to perform freight bill audits, there are reputable companies out there who can perform this service for you, often at a percentage of savings cost. Trinity's Customized Logistics division can audit freight bills utilizing our TMS, generating customized reports as needed to show where discrepancies are occurring.

Excuses, excuses!

How many different types have you heard? "I can't deliver today because our truck is in the shop, we have to repower it" or "It's snowing too hard, we can't get over there today" or "The driver is sick, we'll have to reassign the load". What would you consider to be a "service failure"? A breakdown, a missed pickup, a slipped delivery appointment, damaged product? All of the above? It's important to define what your company considers to be a true failure in a trucker's service record. Once you define it, you can measure it. That means when you are selecting the provider for a critical shipment, you'll be able to see a proven record of success or failure, choosing accordingly to ensure the highest chance for a successful delivery to your customer, no excuses required.

You'll get more flies with sugar

Your brand is a promise, and the people you hire to deliver the product are extensions of the promise, and extensions of your brand. That's why the professionalism and courtesy of the shipping service provider you choose is paramount to the successful delivery of your brand's promise to your customer. Anyone who shows up on behalf of your company can leave an impactful impression in the way they carry themselves. If they're pleasant, appreciative for the freight opportunity, and eager to serve the needs of both your staff and those they meet during delivery to your customer, that behavior should be rewarded with more of your business. Track positive feedback on drivers as much as you track negative remarks, each carry significant weight in the end score.

Cracked, leaking, or plain out busted

Overages, shortages, and damages to the product aren't always the transportation provider's fault. Bear in mind, these comments are only directed when the driver is to blame after you've investigated all evidence. Whether it is inbound materials for your facility or outbound from your facility, it's never good to receive product that's been damaged by actions of the driver. By tracking the instances, you can spot trends with specific drivers and the motor carriers they represent. By learning who travels with the most special care of your "precious cargo," you can make better decisions about who's getting your business.

For more information on measuring carrier performance, contact Trinity Transport at (866) 603-5679. Allow us to take a load off your mind, literally!

Best Truck Driver Video Contest

2011-06-29T13:26:00.000-04:00

Do you feel you’re the best truck driver out on the road? Does the chance of winning $1,000 make you want to prove why you’re the best? This year, in preparation to celebrate the nationally recognized American Trucking Association sponsored Truck Driver Appreciation Week this September 11-17th, Trinity is calling for nominations for the title of the “Best Truck Driver”, through our Best Truck Driver Video Contest! You can even nominate yourself!

Here's how to nominate a truck driver:

All you have to do is record a video, of the truck driver that is being nominated, and simply upload your video to our Facebook page!

Don't have a video camera?
If you don’t have a video camera, or you would rather submit a picture, all you have to do is upload a picture, of the truck driver that is being nominated, to our Facebook page instead! Please include a short article along with the picture of why the driver deserves to be considered the best!

Don't have a Facebook page?
No worries, you can Email your submission to us instead.

Your entry will be based on creativity, personality, and your response to why you think that the driver you nominated should be named the BEST!

*Please provide the following information by e-mail:
•    Your name
•    Carrier name
•    Telephone Number
•    MC Number
*Please do not include this personal information in your video or on Facebook

Hurry the contest ends on September 17th, and nominations are already coming!

For the complete listing of rules please click here

What exactly is a Freight Broker?

2011-06-24T12:05:00.000-04:00

Have you ever wondered what a freight broker is, what they do, why they exist? To put it in simple terms, freight brokers are simply matchmakers. They are the middle-man between the shipper (the maker or owner of the product) and the trucking company that moves the freight. Freight brokers perform a valuable service for both ends of the spectrum, however they do not function as an actual carrier, they arrange for the transport of goods. Freight broker activities are under the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) who defines a broker as “a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier”. 49 C.F.R. Part 371

Freight brokerages provide assistance to carriers by filling their trucks and providing assistance along the route to help the trucker deliver the order on time. Not every carrier has a private sales force working to secure loads for their fleet, and needs help accessing a network of shippers quickly to keep them rolling. Brokers also provide a great financial service to truckers, providing fuel advances to help with cash flow and offering quick payment plans. Oftentimes, the carrier is paid before the freight broker collects payment from the shipper! Bottom line, a freight broker exists to help the carriers relocate their equipment to a better freight market, or in many cases, back to their home base.

Many companies find the services provided by freight brokers to be an important link in their supply chain. The importance of a freight broker is easy to understand; the freight broker makes sure that the shipments are arranged to deliver on time at a fair price with reputable providers. Without freight brokers, shippers would encounter an enormous investment of time and money trying to find the right carrier to transport their products, tracking the shipment, and auditing freight bills.

Trinity Transport, ranked by Transport Topics as one of the top 25 freight brokerages in the nation since 2003, moves an average of 15,000 loads per month. With that type of volume, we carry significant buying power and relationships with our motor carriers. That translates into savings on each shipment that the shippers may not be able to obtain based on their volume alone. Trinity saves their clients and motor carriers a great deal of time playing matchmaker, our goal is not only to deliver your product on time, but also to deliver time itself so that you can perform at your best without having to become experts at matching loads to trucks or vice versa. Allow Trinity to take a load off of your mind, contact us for a free quote on your shipment or for information on our load boards. (866) 603-5679

Global flooring company awards TCL their logistics contract

2011-06-22T15:30:00.001-04:00

Trinity Customized Logistics (TCL), a division of Trinity Transport, has been awarded a logistics contract to provide transportation support and solutions to Tajima Flooring of Conifer, Colorado. TCL supports clients like Tajima with solutions including supply chain and logistics consulting, freight management, and a transportation management system (TMS) utilizing online SaaS technology. TCL’s transportation management system enhances supply chain visibility and reporting while creating cost savings from automation, optimization, and collaboration.

“We are very excited to be awarded this opportunity by Tajima Flooring,” shared Brian Kenney, Vice President of TCL. “The initial phase of our contract was to manage an RFP bid process in which we’ve been able to immediately negotiate nearly 16% in transportation cost savings on Tajima’s behalf. In addition to this amount, Trinity’s transportation management system provides additional savings through supply chain efficiency and visibility.”

About Tajima Flooring
Tajima is a global market share leader in high design Luxury Vinyl Tile, Plank, Sheet, and Loose lay flooring products. Tajima is a 3rd generation family business established over 90 years ago. In the US market, we service our clients with warehousing on both the east and west coast maintaining over 1,000,000 sq ft of inventory. Our core end use markets include Retail, Corporate, Healthcare, Education, Sports and Hospitality. All Tajima flooring products are Floorscore Certified meeting the highest environmental standards for indoor air quality and performance. Tajima’s new “Eco Bond” spray adhesive system allows for faster installation, improved moisture production and pH protection plus the ability to use floors the same day they are installed. Eco bond is also Floorscore Certified and is a zero VOC adhesive system. Learn more at http://www.tajimaflooring.com/.

About Trinity Customized Logistics
Trinity Customized Logistics is a division of Trinity Transport, Inc. comprised of an experienced team of experienced Trinity professionals that leverage over thirty years of experience in the industry with a web-based transportation management system. Trinity is unique in that it offers complete support for its software, unlike other systems that require large capital expenditures to simply purchase stand-alone technology. Operations are conducted from Seaford, Delaware. TCL was formed initially to address the needs of a select base of core clients, and has since been launched publicly and offered to prospective clients. In addition to cost savings created by the expertise of TCL’s team, shippers benefit from enhanced visibility and improved efficiency in their operations. For more information, visit http://www.trinitycustomized.com/.

About Trinity Transport, Inc.
Trinity Transport, Inc. is a logistics company with headquarters in Seaford, Delaware. Trinity has regional service centers in Euless (Fort Worth), Texas; Kansas City, Missouri; and Denison, Iowa and operates throughout North America with another 85 independent agent locations. The company has been one of the top 25 freight brokers in the country since 2003 according to Transport Topics; was designated as a Top Workplace in the State of Delaware by The Delaware News Journal; and was the recipient of the Better Business Bureau’s Torch Award for Marketplace Ethics—just to name a few. For more information, visit www.trinitytransport.com or contact Brandy McMullen at brandy.mcmullen@trinitytransport.com or (800) 846-3400.

It's a Carrier's World Part 3: Time to get creative

2011-06-20T13:24:00.000-04:00

By Brian Kenney, Vice President, TCL Division

If you follow this blog or if you are anyway involved in the transportation process you know that freight rates continue to rise. Not only are shippers paying a higher fuel surcharge than they did last year, but they also have to pay higher line haul rates. This is a result of an increase in demand for trucks and a decrease in the supply of both trucks and drivers. Right now there are fewer trucks on the road than there were last year. However, carriers have more freight to choose from, which is not a good thing for shippers. This means carriers control the market and they are doing everything they can to keep it that way.

Even with the increasing demand for trucks, carriers can’t just easily add additional assets to their fleets. There is a backlog on new truck orders and the priority for most fleets is not adding additional equipment, but replacing older equipment that they held onto during the recession. Carriers are also working to retain good drivers or to replace the drivers that they lost as a result of CSA. There is not a surplus of drivers that are just sitting around waiting for a carrier to hire them, so adding additional trucks and drivers is not something that will happen any time soon.

Most carriers are going to do everything they can to maximize the profitability of their fleet with the assets that currently have. They know if they continue to add equipment to meet demand then they will create a more balanced market and lose their rate leverage over shippers.

So if you are a shipper you have a few options. You can continue to pay more and more to move your freight, which will probably have a negative impact on your bottom line. At some point you will have to try and pass these costs onto your customers. However, the better option is to get creative and find ways to become more efficient and find cost savings throughout your transportation processes instead of just trying to reduce your freight rates. The shipper that can absorb these increases in transportation costs without passing them onto their customers will have an advantage over their competition.

I recommend that you take a look at your processes, technology, and personnel. If you are doing things the same way you have always done them, than there is probably some room for improvement. The transportation market has gone through 3 major changes in the last 3 years alone and most companies have had to make significant changes to their processes to keep costs down.

As efficient as most companies believe their processes to be, transportation is generally one area that is overlooked. Many companies view their freight spend as a cost of doing business and therefore do not spend enough time reviewing their transportation processes. However, in the transportation market we are in, that cost of doing business is going up and companies can no longer afford to overlook their transportation department.

If the only technology you are using to manage your transportation is a combination of a fax machine, spread sheets, and email, then you probably have some room for process improvement and the ability to at least create soft cost savings.

If transportation is handled by someone who does not have a transportation title such as customer service, sales, or by someone in purchasing, than you probably have some room for process improvement and cost savings. If you are asking your customer service team to become rate shoppers and handle the transportation, which is a full time job in this market, when do they have time to provide customer service? When people become over whelmed they are going to try and get things done, not necessarily get them done correctly. Your company may think that they are saving money because they did not hire a transportation person, but they are most likely costing themselves money because they are not maximizing the productivity of the customer service team.

I would also recommend that companies take a look at the transportation expertise of the people handling their freight. People only know what they have done or been taught and if the people making transportation decisions for your company do not have a lot of experience or exposure to transportation information outside of your company then you probably have room for improvement.

Keep in mind, there are many 3pls and transportation consultants that can help you and your company create cost saving solutions if you do not have the time or resources to do it internally.

Top 3 Reasons to Partner with a 3PL

2011-06-20T10:33:00.002-04:00

Learn what to look for and how to choose the correct 3rd Party Logistics Provider, and see why Trinity is the correct choice!

Video Tutorial: Tracking My Shipments & Viewing Load Docs

2011-06-14T08:51:00.000-04:00

This tutorial will demonstrate for our shipping customers how to navigate our website as well as how you can obtain tracking of your shipments, download valuable freight reports, view load documents, as well as print proof of delivery images as needed. To obtain your username and password, call (866) TRINITY or your account manager.

Direct LTL Pricing—Time to Test the Waters?

2011-06-09T16:37:00.005-04:00

By: Laura Willey

Account Specialist

http://www.trinitycustomized.com/

At TCL, one of our primary functions is to locate opportunities for cost-savings for our clients. We’ve helped many of our clients analyze their entire supply chain, both internally and externally, and have helped them identify areas where improvements could be made and savings could be found. During this process, we found that a common trend among many of these clients was relying on the blanket prices of their 3PLs for their less-than-truckload (LTL) shipments.

For shippers who ship mostly truckload (TL) shipments with only the occasional LTL, this is a great strategy as they are able to capitalize on the discounts that the 3PL’s large shipment volumes have produced. However, what many shippers do not realize is that large freight volumes are not required to obtain discounts with LTL carriers. In fact, shippers with moderate freight volumes can often secure steeper discounts than most 3PL’s are able to obtain. This is due to the fact that the LTL carriers prefer to negotiate pricing directly for the shippers (called customer-direct or customer-specific pricing).

So what this means is that, if you are shipping more than 50 LTL shipments per month, you should probably consider securing customer-direct pricing through one or two LTL providers (this could be a primary and a backup or a local and a long haul).

If you have never gone through this process before, we recommend having a 3PL negotiate the pricing on your behalf for the following reasons:

1.3PLs will be familiar with the LTL carriers. This is important because:

They will be able to consider LTL carriers that you may not have known existed.
They will be familiar with the service habits of the LTL carriers (on-time performance, etc.).
They will be familiar with the amount of room for negotiation for each carrier.

2.3PLs will be able to analyze your freight and provide the carriers with all necessary information in order to secure the most competitive rates. They will also know what works in your favor and what works against you. They will be able to use anything in your favor as negotiating power with the LTL carriers. In addition, if there is anything that works against you, they might be able to make suggestions for improvements in processes or shipping habits in order to secure lower rates than you might not otherwise get.

3.LTL contracts can be difficult to read and interpret. 3PLs will be familiar with the process and will know what to ask for in the RFP. In addition, they will be able to tell you if the proposed discounts are competitive or not.

Regardless of whether you decide to attempt to negotiate your own LTL pricing or utilize the services of a 3PL, it is important that some basic guidelines are followed in order to secure the most competitive pricing available.

Preparing the bid:

1.Provide accurate product specs to solicited carriers including:

Pallet sizes.
Product descriptions (including accurate NMFC and freight class).
Stackability of the pallets.
Average pallet weight & height with product.
Pictures of freight and different loading configurations.

2.Provide accurate historical shipment volumes and details.

Minimum of 3 months worth of shipment data.
At minimum, must include complete cities, states, zip codes, number of pallets, class, and weight.

3.Specify your typical accessorials in the proposal, including number of occurrences.

Don’t forget:

1.Negotiate length of contract. Make sure to ask for a minimum of 1 year.
2.Negotiate an FAK. If the majority of your freight is a lower class, negotiate with the carriers to rate all of your freight at that lower class.
3.Negotiate accessorials. Ask for your most common accessorials to be capped or even waived.
4.Counter the carriers. Remember this is a negotiation and you are not likely to get everything you ask for the first time around.

So, if you have at least a moderate amount of LTL shipments per month (around 50) and you are not currently doing so, taking advantage of direct LTL pricing might be an immediate realization of cost savings for your company. Even if you feel like you’re getting the most competitive pricing available through your current broker providers, it doesn’t hurt to test the waters. If you are unsure of how to get started or who to approach, contact TCL and we’ll help guide you through the process.

Visit our website: http://www.trinitycustomized.com/

New Rules for Success (Part 2)

2011-06-06T15:10:00.000-04:00

By: Jeff Banning
      President/CEO

(Part 2 of 2)

11. Real Relationships Rule

Successful transportation professionals continue to believe that this is a people business. Relationships must be cultivated not only with customers and carriers, but also with colleagues within the company – in the headquarters office and out in the field with agents, sales associates, or company stores. I firmly believe in the 3R’s - Real Relationships Rule.

12. Train to improve performance

Training will always be a high priority in a successful company. Training helps people to perform at their best. Good performance boosts self worth.
A sense of worth builds employee loyalty to the team, the company, the customer and the carrier.

13. Give back to the world around you

    To be successful today requires a culture of caring not only for the company, but its community and the world outside. A company and its employees must be willing to give back – to donate time, money, ideas and energy to others.

14. Do it right, but also – do the right thing

I believe a successful company needs to create a culture that allows team members to address their jobs with complete integrity and morality – not only to do it right, but to do the right thing.

15. Set goals that people can commit to achieving

Along with everything else, leadership beliefs have changed. Today, the characteristic that sets leaders apart from those less successful is not ambition.
It’s neither intelligence nor charisma or personality. And it’s certainly not luck.
The valued leader today is one with the ability to set goals that people can become committed to achieving. It is the person who is consistent in involving, rewarding and recognizing people.

16. Nurture and create nurturing leaders

A company must cherish and nurture their real asset, and that is the people who comprise a company. You must be a model of the kind of leaders you want to inspire and develop. Provide leadership training. Create pathways to success and leadership for those within the ranks.

17. Show appreciation of others – every day

    To succeed today, it’s really very simple. You must get better and better each and every day, create an environment of high tech and high touch and every day, appreciate and reward the people who make it work.

18. Constantly reward and recognize good work

Every great company, every great brand, and every great career has been built in exactly the same way. Bit by bit, step by step, and little by little. If every element of an organization, and every person, gets a little better every day, then that organization will become unstoppable. As a leader you must recognize your team members’ good work and reward their relentless pursuit of excellence in order to keep that momentum! What gets rewarded gets done, and what gets done builds growth.

19. Be a source of pride for each employee

An organization that builds this kind of momentum will soon evolve into a market leader. It will be successful and profitable. And most important, it will be a source of pride for each and every person it employs.

20. A company is simply a group of people; take care of the people

What obstacles can you remove for your team? What tools could you provide in order to help them better perform their duties? Get to know them on a personal level, find out what makes them tick, what motivates them, and what de-motivates them as well, and provide incentives accordingly. Seek their feedback, involve them in decisions whenever possible, and never forget that it’s because of them that we are able to exist in business successfully today.

New Rules for Success

2011-05-31T11:14:00.000-04:00

By: Jeff Banning
President/CEO

(Part 1of 2)

There are new rules that companies must follow to succeed in today’s business environment. It doesn’t matter if you are in transportation, a service business or a manufacturing firm; the same new rules apply. I would like to share them with you.

1. Watch for change beyond the obvious

In order to seize opportunities that lead to success, companies must be ever mindful of changes occurring beyond the obvious. You must continue to be willing to adapt to change since we are living in a constant period of transition. What works today becomes history in a hurry.

2. Constantly raise the bar

Successful businesses today don’t stop for self-congratulations. They are too busy raising the bar. You must become your own fiercest competitor because no sooner than you cross one frontier, you must be out scouting the next.

3. Go way beyond basic services

You can no longer assume that “good” basic service is enough. It’s not. You must continually work to dominate your market by improving your processes year after year.

4. Practice continuous improvement

You must believe in continuous improvement, always forward thinking and asking yourself daily how you can get better, and then doing something about it.

5. Be creative and innovative

You must be creative and innovative, and more than anything else, this means recognizing and embracing ideas. They may originate anywhere inside the company or out, either can work! The key is to implement these changes quickly—react to problems and situations spontaneously and correctly—there’s no time to waste.

6. Enact new ideas quickly

In this environment, fast can trump careful. That’s dangerous. That’s why the homework must be done in advance, to already have as much information and consideration as possible BEFORE the event. This prepares you to act not only quickly but correctly, as required.

7. Be willing to take risks

The successful company takes risks, and tries new things. They also watch those innovations and analyze whether they are working. They fine-tune and give it a chance to work, but are also willing to admit when it’s not working and try another path.

8. Have executives and managers who listen and respond

Management and executives must create and maintain a culture that encourages employees to bring ideas into the company. Just as important, they must listen to and consider these ideas. And respond to them - quickly.

9. Become your own fiercest competitor

No company can afford to ignore change and just do what comes naturally. That may have worked in years past. But those days are in the history books. Competition today is really stiff and we need to use technology to stay out front.

10. Use Technology as a driving force

Technology gives a company the tools it needs to meet the demands of the 21st century. It has reshaped the transportation industry and will continue to do so. It is the driving force that will either catapult you down the road, or leave you limping along, behind the pack.

2011-04-28T12:10:00.000-04:00

100 Great Supply Chain Partners!

SupplyChainBrain will once again feature its annual list of 100 Great Supply Chain Partners in the July/August issue. Click here to nominate Trinity as your chosen service provider based on our technology, logistics, transportation or consulting solutions have made a significant impact on your company’s supply chain efficiency in recent years.

Seeking to Understand: The Power of a Question

2011-04-27T17:10:00.000-04:00

By: Erica Goulding
Carrier Sales, Texas Regional Service Center

At Trinity, we don’t just want to move a load for you from point A to point B. We want to collaborate to help you effectively manage your logistics. To us, it’s more than a load. It’s a partnership established and developed to provide logistics solutions for your business.

Questions are powerful investigation tools. Our sales team does not ask questions as a way to pass time. We do not ask questions to manipulate a situation. We do not ask questions to annoy customers. However, we do ask questions to gather information. We use that information to help us better understand your business and your logistics needs. We understand that your time is very valuable. Through experience, we’ve learned what questions to ask to quickly understand the needs, wants, nuances, urgency, and challenges of your business in order uncover the benefits Trinity provides that will match the needs and maximize the available resources. Asking questions, and receiving answers, allows experienced account managers to assess the viability of potential business.

As account managers, we consider:

· Is the partnership a good fit?

· What additional discussion needs to take place before business is conducted?

· What services best fit their need?

· How can I leverage our experience and volume to save them money?

Perry Equipment (PECO) in Mineral Wells, Texas, chooses to work with Trinity Transport as a full service logistics provider. Trinity representatives met with Tim Greensweight, Traffic Manager at Perry at the start of the relationship to discuss their business needs as well as expectations once we began servicing their account. Through the sales and questioning process, our account managers were able to establish a partnership with Perry that can best be described using a term PECO uses on their website, “Problems Solved. People Satisfied”. Tim works with Trinity because he feels Trinity “goes above and beyond to get things handled as they should be.”

Celebrating their 75^th year in business, Perry Equipment knows a thing or two about handling business. Leading their industry in technology, PECO’s ISO 9001 certified product lines include filtration solutions to preserve the environment, reduce energy consumption, and improve productivity.

Applying the Perry example to your own relationship with our Trinity account management team, know that the reason we seem so inquisitive about your company is because we truly want to learn any way possible to serve you better. Chances are if you humor us and take a little time to answer inquiring minds, we’ll come back with a solution to enhance your processes, possibly saving money, but always improving the quality of our service. Thanks for your business!

It's a Carriers's World Part II: Drivers Wanted

2011-04-27T17:02:00.002-04:00

By Brian Kenney, Vice President of Trinity Customized Logistics

Many trucking companies are trying to find a way to capitalize on the increasing demand for their services, but they know that their ability to capture additional business is going to be based on their ability to retain current drivers and to add new drivers. There is a currently a major driver shortage and it looks like it is going to get worse.

There is a significant percentage of truck drivers on the road today that are planning to retire in the next 5 years. Most trucking companies keep a very close watch on their drivers and take proactive steps to replace retiring drivers. However, the new regulations brought on by CSA will most likely force many of these drivers into retirement sooner. This will force carriers to scramble to find replacements for drivers that they were not planning on losing. CSA is also going to take many drivers off of the road that had no intention of retiring any time soon. In a country where unemployment is still hovering around 9%, you may think that it will be easy to replace these drivers because so many people are looking for jobs. Well, that is not the reality of the situation. Being a professional truck driver is not for everyone and most people that are accustomed to working a 9 to 5 job and being home in time for dinner will probably not be applying for a CDL anytime soon.

Retiring drivers and CSA causalities are only the tip of the iceberg when it comes to a driver shortage. The proposed Hours of Service (HOS) change and the possible requirement of Electronic on-board recorder (EOBR) will severely limit the ability of carriers to service their customers and will require more drivers to move the same amount of freight that is being moved today. If you are keeping score you will notice that there are many factors that are taking drivers off of the road.

As a result of the growing driver shortage, carriers are paying more for their drivers. Some drivers with good CSA scores are taking full advantage of the situation and acting like a superstar free agent in baseball and going to work for the company that will pay them the most. Many carriers are also offering sign on bonus to attract both established drivers as well as first time drivers. Drivers are in such demand that many carriers will give the drivers final say whether or not they take a particular load. We are heading towards a market where carriers are going to make a decision not to service a customer because the driver doesn’t want to go to a particular shipper or receiver.

So, if you are a shipper you should make your freight and your facilities as carrier friendly as possible (for ideas on how to make your freight more carrier friendly see our blog: Carrier Capacity: Look Beyond the Bid). Be prepared to pay more for less service and prepare your customers for possible service problems. It is carrier’s world and all indication are that it will be that way for the foreseeable future.

It's a Carrier's World

2011-04-13T09:20:00.001-04:00

By Brian Kenney, Vice President of Trinity Customized Logistics

Because this is still a hot topic in all of the industry publications, we thought we would revisit the subject of carrier capacity. If you are involved in transportation then you have noticed that it is getting harder to find trucks and that your transportation costs are going up. As the economy continues to slowly recover and as the demand for trucks continues to surpass the supply, it is time to accept the fact that it is a carrier’s world. You are going to have to learn to play by their rules and realize that you need them more than they need you.

It was a few short years ago when the majority of the shipping community used the down turn in the economy to put the screws to carriers and drive rates down to levels that had not been seen in more than a decade. As a result thousands of trucking companies went out of business and hundreds of thousands of trucks were taking off of the road for good.   Tight credit markets and reduced manufacturing capabilities are impacting the ability of the carrier community to expand their capacity to meet the demand.    In fact, before they can add additional trucks to their fleets, many carriers need to replace older equipment.   During the economic downturn the average age of most fleets increased because many carriers decided not to buy new equipment for various reasons.   After more than a year of consecutive freight tonnage increases many carriers have felt comfortable enough to spend the money to replace older trucks and some carriers are even feeling good enough to add additional trucks to their fleets. This is a positive sign for the trucking industry, but it is not a quick fix and it may not be a good thing for shippers.

Many truck manufactures had to downsize their operations or close plants over the last few years and as a result they may not have the ability to efficiently handle this surge in new truck orders. Currently there is about 6 month backlog for truck manufactures and if orders continue to come in at the current pace then the backlog is expected to grow to about 9 months.   Over the next 6 to 9 months if the economy continues to recover at the current rate there will be will be an increased demand for capacity and the gap between supply and demand will continue to grow.

So, if you are a shipper you should make your freight and your facilities as carrier friendly as possible.   Be prepared to pay more for less service and prepare your customers for possible service problems.   It is carrier’s world and all indication are that it will be that way for the foreseeable future.

For ideas on how to make your freight more carrier friendly see our blog: Carrier Capacity: Look Beyond the Bid.

Load Volume Soars 39% -Feeling the Pinch Yet?

2011-03-10T17:00:00.000-05:00

posted by Brandy McMullen, CTB

According to information released today by TransCore, a key provider of transportation technology, freight volumes are up 39% in February over January's already record highs! Feb 2011 was 64% higher than load volume in Feb 2010. If you haven't felt the pinch, you're going to soon.

Not Captain Crunch, it's "Capacity Crunch"

Capacity crunch is industry speak meaning there are fewer trucks available for hire. If you think of capacity as a pool of motor carriers in our country, the crunch occurs when the pool becomes dimished for any reason. For example, the annual produce season affects the capacity pool, soaking up many for hire truckers from March to August as they clamber to haul the higher paying produce loads shifting up the east coast. The difference this year? The crunch started so much earlier (beg of Feb) due to other circumstances in our industry paired with the economic recovery. Other sources call it a driver shortage, but that has more to do with the problem trucking companies are having hiring and affording qualified drivers with clean records.

Load-to-Truck Ratio

February's load-to-truck ratio increased by 62% over January and a whopping 94% over Feb 2010! With freight this abundant, trucking companies are enjoying the pendulum swinging into their favor.Honestly, you can understand (a little) why they are rejoicing. So little is going in their favor these days, what with the rising cost of fuel, increased regulations (CSA), and pending legislation attacks (hours of service and electronic onboard recorders). At least they are able to fill their trucks and keep rolling, unlike the last few years when the number of loads fell drastically. The problem lies with unethical carriers that will essentially auction off their truck to the highest bidder, throwing relationships and customer service to the wind. See our Feb 25th blog to read more about this trend.

What's Next?
Don't get me wrong, even the most ethical motor carriers are raising prices. You don't have to be an economics major to know what happens to price when supply doesn't fulfill demand AND the cost of fuel spikes. Price goes up! A recent article in USA Today featuring an analyst from R.W. Baird predicted rates to increase up by 5% in 2011, the largest increase in 6 years! There are steps you can take as a shipper to win the fight for capacity, and we encourage and welcome you to comment here, share your experiences, and feel free to connect with us on our facebook and we'll be happy to answer additional questions.

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FMCSA Reaches Settlement Agreement in CSA Lawsuit

2011-03-09T15:47:00.000-05:00

In November, three trucking organizations joined forces in a lawsuit against the FMCSA seeking to block or delay disclosure of certain data that could misrepresent carriers’ safety record.These include The National Association of Small Trucking Companies, Inc., the Expedite Alliance of North America and the Air & Expedited Motor Carriers Association. The groups argue that disclosure of the percentile rankings within the Behavior Analysis and Safety Improvement Categories (BASICs) and use of terms characterizing those rankings amount to a public branding of carriers as less than safe.

Today news was released that there was a settlement agreement reached in the litigation regarding CSA (Compliance Safety Accountability) Program. What do you think about the settlement terms? Are these a more accurate portrayal of the motor carrier?

The key changes that FMCSA will make to the SMS public website by March 25, 2011 are as follows:

Replace any ALERT symbol currently displayed in orange on the SMS website with the following symbol of the exclamation mark inside a yellow triangle
Revise the disclaimer language on the SMS website to read:

“The data in the Safety Measurement System (SMS) is performance data used by the Agency and enforcement community. A yellow triangle symbol, based on that data, indicates that FMCSA may prioritize a motor carrier for further monitoring. The symbol is not intended to imply any federal safety rating of the carrier pursuant to 49 USC 31144. Readers should not draw conclusions about a carrier’s overall safety condition simply based on the data displayed in this system. Unless a motor carrier in the SMS has received an UNSATISFACTORY safety rating pursuant to 49 CFR Part 385, or has otherwise been ordered to discontinue operations by the FMCSA, it is authorized to operate on the nation’s roadways. Motor carrier safety ratings are available at http://safer.fmcsa.dot.gov and motor carrier licensing and insurance status are available at http://li-public.fmcsa.dot.gov.”

Biggest Trucking Rate Increases Since 2005 Predicted

2011-02-28T11:25:00.000-05:00

Break out your corporate piggy banks, you're going to need them, unfortunately. The perfect storm reached national non-trucking news sites today with USA Today's online article titled, "Trucking rates forecast to roll higher." Citing many of the same issues we've discussed in prior blogs, their news article serves as education and a forecasting tool for shippers and manufacturers about the logistics industry changes happening. Increased fuel prices, dwindling capacity, higher equipment costs, and proposed shorter hours of service are all some of the most talked about issues in our industry right now. According to the American Trucking Association, in January the trucking tonnage, or the amount of freight moved, reached the highest level in the last three years!

Truckers are already increasing their rates, selling their services at a surplus, often to the highest bidder. Many believe the market has kept trucking prices too low for too long, and are happy to take this opportunity to raise prices to what they feel a fair price for their labor. Read more about the auction market for trucking services on our blog titled, "Going, Going, Gone...The Auction Begins. Driver Shortage Has Arrived." With demand on the rise and supply dropping at an alarming pace, how will your company get product to market? Do you feel confident in the ability of your current motor carrier or choice freight broker? Read our recent blog titled, "Winning the Fight for Capacity" to learn how you can be prepared and successful despite the perfect storm raging in the market.

Going, Going, Gone. The Auction Begins...Driver Shortage Has Arrived

2011-02-25T12:53:00.000-05:00

If you haven't already heard, the capacity crunch (driver shortage) everyone has been predicting has arrived, and it's packing a mean punch. This is not the story of the broker who cried wolf, friends, it's the industry reality right now. To describe the online activity around this topic, FRENZY isn't too strong of a word. Carriers are turning down loads in epic proportions, and it's occurring for every reason you could possibly imagine.

FUEL is one of the largest impacting conditions right now as we've seen a steady increase to up to $3.573 this week, up $.74 from a year ago. Put quite simply, many carriers are flatly refusing to haul without a substantial amount of fuel surcharge increase.

DRIVER RECRUITMENT is another factor, considering the massive amount of new regulation thrown at trucking companies, including CSA. Finding qualified drivers with adequate scores is one side of the coin, being able to afford to hire them is the other side! It is simply harder to find good drivers in the face of the new scoring system.

Even the WEATHER is scoring some blame, with storms (real or just predicted) across the country delaying product, deliveries, and freight routes where trucks are normally plentiful are truck-barren. The story in the Northeast and Midwest will not just be wet and windy. A band of snow moved through the Midwest Thursday into Thursday night and is now making its advance through the Great Lakes and interior Northeast today.

Some motor carriers are taking an auction standpoint. They wait out "booking" loads to see which shipper or broker will come up to the best bid price for their truck, and then going, going, gone...SOLD to the highest bidder! On the freight forums online, 3PL's are crying "foul" as unethical providers hit below the belt, accepting a shipment, but backing out last minute when a higher paying load comes along. This is the time when REAL RELATIONSHIPS RULE, and it takes a lot of influence with a motor carrier to place their capacity in your hands. But don't take our word for it, the experts are posting actual indexes showing how the capacity has already tightened, check out our resource information below.

FTR Associates has lowered its Shippers Condition Index (SCI) to reflect tightening carrier capacity, particularly in the truckload sector. The February Issue of FTR’s Shippers Update reported that the SCI in January stood at -8.8. The SCI sums up all market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero is unfavorable. January’s reading is the most negative (unfavorable) reading for shippers yet seen during the current recovery.

Noel Perry, Senior Consultant for FTR, commented on the forecast for their Shippers Conditions Index “The SCI is our method for capturing the shipping environment in one, easy to understand figure.” He continued: “The downward progression of the SCI should serve as a warning signal to shippers. While trucking capacity is currently adequate during the normally slack winter shipping season, looking forward we expect things to tighten up dramatically as freight demand picks up beginning in March. A shortage of truck drivers, due in part to new government safety regulations, will be the key factor restricting the ability of motor carriers to expand capacity, resulting in higher rates and possible challenges in getting freight moved later in the year.” The February Shippers Update includes commentary on another new federal regulation – for Electronic On-board Recorders and how they are likely to impact carriers and shippers.

The Shippers Update, launched by FTR Associates during 2010 as a part of the firm’s Freight Focus Series, looks at conditions that will affect the cost and efficiency of shipping goods via all transportation modes. North American shippers will find in one reference the essential information they need on freight volumes, equipment capacity and transport costs and rates. The Shippers Update has both history and forecasts for four modal options: truckload, less-than-truckload, intermodal and rail carload. The analysis includes the breakdown of total truck and rail volumes into major commodity segments. It also provides historical snapshots of inland water and air freight markets. The freight data is augmented by an abundant collection of supporting data covering macro-economics and the fuel market.

FTR Associates, located in Nashville, IN, has been a leader in transportation forecasting for over 20 years. The company’s U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates’ forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs. For more information about the work of FTR Associates, visit www.ftrassociates.com or call Helen Lile at 888-988-1699 ext. 45.

Winning the Fight for Capacity

2011-02-22T10:16:00.000-05:00

In the wake of the new CSA regulations, the entire logistics industry is hunkering down for the predicted fall out, monster sized capacity issues. We're hearing driver shortage estimates from 150,000 to upward of 500,000 or more! The regulations are coming at the worst possible timing, economically speaking, according to Stifel Nicolaus, conditions in our economy will be a significant improvement over the recent past, supporting transportation growth of 3%+. Everyone's quickly putting together the math, who's going to haul all of this freight? We're used to demand exceeding supply at the tail end of the first quarter, give or take, depending on the beginning of produce season. However, what shippers aren't truly prepared for are the changes they need to implement now into their transportation processes to fight for capacity in the freight market of 2011. I'm already seeing an alarming rate of discussion in one of my LinkedIn Groups about turning away freight because folks can't find the trucks to haul it, and we're only halfway into the first quarter!

As your trusted source for logistics solutions, we are working to educate our shipping customers, working side by side with them to secure the equipment that will keep their product on the roads and in the hands of their consumers rather than clogging up their dock space, warehouse inventory, and manufacturing lines. Here are some answers to the question everyone is asking...

How To Win the Fight for Capacity

Be Carrier Friendly

It is a carrier's market, friends, and that means you need to become the most carrier friendly shipper possible. Are you doing everything possible to make certain yours is the freight the truckers want to haul? Have you committed your shipping and receiving staff to load and unload trailers as quickly as possible? Are you offering drop trailer programs to the carriers that are able to drop and hook? Another great tactic is to extend your dock hours to become more flexible around peak travel hours, accommodating for traffic patterns and accepting trucks after their last receiver held them up too long. These are three methods to show your appreciation for their valuable time. The less time they spend with you, the more time they can be driving, making money, and accepting more loads (from you!).What about lead time, do you give plenty of advance notice to your carrier/broker for upcoming shipments? You've got to educate your customers about purchasing with a flexible window of delivery, allowing you ample notice to give a heads up to your providers. The more notice everyone has, the better chance you'll have at securing a truck to deliver on time to the end customer.

It's Time To Commit

Are you committing to your transportation providers, making sure that you're providing them with the volume it takes to become a "VIP" in their eyes? Maybe you're one of those that still believe price shopping is the best way to save your company a dollar, dividing your freight among a long list of providers, and patting yourself on the back for finding "savings". What do you suppose will happen when your list of providers begin to focus their attention on giving capacity to their bread and butter customers? Unless you become valuable in the eyes of your providers, you could very well be left with a jam-packed dock of freight and no one left to help you win the fight for trucks that's predicted.

Partner With Your 3PL

Third Party Logistics companies like ours are going to be your primary resource in the capacity crunch of 2011. Thanks to our annual volume with carriers across the country, we're able to leverage our relationships with truckers to help fulfill your needs. Additionally, we can use our nationwide network of offices and loads to reposition trucks into the areas in which you need capacity. With the economy improving, no doubt you'll be gaining new clients with new shipping lanes in which you currently don't have an existing provider. That's when we can assist you in arranging the provider based on our vast database of approved motor carriers.

Stay Informed

Make sure you're on our email list. Every week, we send out pertinent industry news, often touching on information like the CSA regs, capacity predictions, fuel surcharges, and other legislation that can affect your company's ability to serve your customers' delivery requirements. Remember, you're not alone in this fight for capacity. Invite us to your facility to speak with your management team or even your customer base, we'll work hand in hand with you to keep these groups informed about the industry. When the sales reps are having a difficult time understanding why their customer's freight isn't delivering, we can come in and provide the education needed to help them prepare their clients and resolve service complaints.

Taking the steps we've outlined, not only will you be poised for success in the 2011 capacity crunch, but your entire logistics team will reap the benefits of enhanced customer relationships. With this proactive approach, your company will outpace your competitors, who are no doubt staring at the freight on their docks, wondering, "Where did all the trucks go?"

How to Reduce Transportation Costs

2011-02-15T10:43:00.000-05:00

The economy is said to be gaining speed, recovering, heading in the right direction, but have you felt the effects? If you are like many manufacturing firms, you are experiencing the so called surge in a less than optimal light. INCREASED COSTS. Food manufacturers, especially, are feeling pressure from increased costs in their industry from the raw materials to processing to transportation of goods, thus passing along those increased costs to the end consumer in the retail sectors. In the face of rising costs, how will you end 2011 with a strong bottom line?

Steps to Reducing Transportation Costs

1. Eliminate manual processes. Chances are, you've been doing things the same way for so long, you don't even recognize there's a better way to do them. Admitting you have a problem is the first step! All kidding aside, look at your day. At the end of it, do you feel as if you've accomplished what you'd set out to do that morning, or did you get sidetracked along the way? Hey, we understand, it happens! Take, for example, when a salesperson asks you to track down their shipment. After spending hours on the phone, you tracked down the late trucker only to step into your next "to do" item, getting a rate for a special order. After looking through about 7 different carrier's rate spreadsheets, you discover it's a new lane and you begin calling or emailing to get the rate. Look down at the clock, my friend, the day is over. What have you accomplished towards your core goals and larger projects? Now is the time to rely on technology, such as a Transportation Management System (TMS) that provides visibility and rating with only a few clicks of the mouse. Better yet, share access across the company to empower the sales team with the information they need at a moment's notice.

2. Analyze your orders for possible consolidation. Are you making the most of every truck that bumps your dock? Your shipment planning team should be able to analyze current orders and forecast future ones so to build their shipments in the most cost effective manner possible. If you have 1/2 a truck heading out, yet you're paying a truckload price, fill the other half with smaller LTL's and add a stop or two. Sure, the trucker will charge a stop off fee, but undoubtedly you're going to be saving money overall (so long as the added stop offs are en route and don't add too many out of route miles). Are you shipping more than a few pallets, ending up in a larger LTL move? Why not encourage the customer to purchase more product to fill the trailer or solicit other business to turn that LTL move into a truckload shipment? Your 3PL (Third Party Logistics) provider should be able to assist you with routing and planning your shipments. Trinity provides the option for our customers to utilize an optimization service, where we can load their shipments into a TMS and it will map the possibilities and tell you within seconds what your savings could be. Find out more...

3. Gain control of your vendor routed or customer routed shipments. Depending on the customer, sometimes you have your hands tied when it comes to logistics. You're stuck using their providers as a condition of doing business with them. However, there are instances where you may be able to gain control of these opportunities for savings. Don't fall into the trap of agreeing to a price for your raw materials or inbound product that includes transportation. How can you be sure of the service quality of their chosen provider? Don't you wonder about the potential for savings if you controlled this section of your business? By leveraging your volume, ALL of it, you could qualify for some really decent savings with LTL and Truckload providers. Additionally, you'll gain control of your shipments, which equals control of the quality of the provider, saving you money by retaining happy returning customers. When the ball is in your court, you can measure service performance and rates to ensure your best interests are being cared for.

4. Increase visibility of your freight. Without this, the "extra" costs begin to sneak in like stealth monsters to eat away at your bottom line. They slip in undetected because on the front side, you agreed to a set price with the provider. On the backside, however, without the proper visibility of your supply chain, your company incurs expenses from an inability to plan ahead. How about overtime (remember that carrier that showed up an hour late and the dock had to extend their shift to unload the required product?) or late delivery fees (a back charge from your customer thanks to the trucker arriving late for the delivery appointment). My personal favorite is the one that is a true efficiency killer, "plant downtime", when the inbound product is so late, the entire manufacturing line shuts down waiting for it. Knowing your freight's location enables you to prepare effectively to reduce the "extra" costs.True visibility is more than having a cell phone to call the driver, it's using a best in class TMS that enables you to see tracking updates on all of your freight at once. Learn more...

5. Partner with a freight management team.Unless you are a non profit organization, your goal as a company is to turn a decent profit. In the most basic sense, this comes from selling as much product as possible at the highest profit margin possible. Any activity that isn't directly tied to either securing more business deflects attention away from that goal. That means the countless hours you spend sourcing transportation providers, while tied to customer service, are not considered a profitable way to spend your time. By partnering with a freight management team, you are FREE to do what you do best--SELL! Creating an internal transportation department can drain your resources, clogging up your profit potential with fixed costs. A freight management solution will be able to save you on fixed costs, and will also work to save you on each shipment by leading an official bid process on your shipments, an RFP. Just remember, when selecting your provider, make certain they align themselves so closely with your operations they become part of your team instead of your outsourced vendor. They should not adopt your process, but instead invent solutions to enhance them according to your overall vision.

Changes to the CSA 2010

2010-12-01T16:36:00.000-05:00

November has been a whirlwind of changes to the CSA 2010. I never wrote the 3rd installment to the Unintended Consequences because the first two were written on the premise that it was going to be released without any further changes…and well, that all changed. In the beginning of the month, Truckinginfo.com released an article written by Oliver B. Patton entitled “CSA 2010: Report from the Field”. Pilot state carriers spoke out about the vast differences in their Safestat scores vs. the CSA measurements.

To keep their CSA scores low carriers have found the need to better train drivers and hire or train personnel to inform their shippers. They also realized that the only way to ensure they are not deficient in the fatigued driver category is to utilize electronic on board recorders. One trucking company executive said that they “may decline to work with a shipper if the shipper will not cooperate in proper securement”. This was reiterated by Scott Andersen, VP of risk management and driver services at Andersen Trucking Service when he said “[Our] company also has done customer evaluation to determine which ones will help to keep CSA 2010 scores down.”

Since this was not the intention a few days later the FMCSA announced CSA SMS (Safety Measurement System) Improvements. The first revision modified the presentation of the SMS BASIC results. Intended to clarify that carriers who have percentile rankings above the threshold only signify a prioritization for an intervention, not that any kind of safety rating or determination has been made. The second, and more substantial revision was to modify the Cargo-Related BASIC by recalibrating severity weights and to remove the percentiles and intervention status from public view upon roll out (on December 5). Truckers appreciated the change and shippers were left scratching their heads as to how they were supposed to use the information.

November 23rd NASTC, the Expedite Alliance of North America, and the Air & Expedited Motor Carriers Association, represented by two lawyers, threatened to file suit against the CSA disclosure. They cited concerns that:
• the percentile rankings lead to a “public branding of carriers as less than safe”
• the changes made do not alleviate vicarious liability concerns.
• there was no due process or effective way to challenge data at the state and local levels.
• A handful of states require probable cause to pull a truck over and therefore issue a significantly larger amount of warnings.
• Peer grouping results in unfair comparisons between companies held to different government standards.
• 800 technical changes to methodology in August that still have not been released to the public.

On November 30 the three groups upped the ante by filling a motion for emergency stay with the U.S. Court of Appeals. The organizations say that the BASIC ratings will “decrease competition, decrease jobs, and increase transportation costs…threatening the survival of thousands of carriers, many of which are small companies in rural America.”

November has lead us to December and today the FMCSA released on its official website that the earliest the “national roll-out” will occur is December 12, not December 5 as previously assumed. They carefully chose the terminology “the earliest” just in case…

This is nowhere close to over and don’t hold your breath waiting for the roll out either. We will do our best to keep you updated, please check back often.

Taylor's Gift

2010-11-15T12:06:00.000-05:00

On March 15th, 2010, 13-year-old Taylor Storch passed away in skiing accident in Colorado while vacationing with her family.

Taylor was a kind and giving girl who touched many people’s lives and her legacy is still impacting people around the U.S.
After the accident, Taylor’s parents were asked about organ donation, and they quickly said yes. Without knowing at the time, Taylor’s organs would go on to save the lives of seven people.

Beyond this, the legacy Taylor has left behind has turned into a bigger movement. This would turn into “Taylor’s Gift”.

Taylor’s gift was founded by Taylor’s family and family friend.

Taylor’s gift aims to share the memory of Taylor, while spreading information about organ donation.

Taylor is the granddaughter of Danny Storch and the niece of Chris Shaw. Danny and Chris are team members of Trinity Transport in our Texas office. This tragedy has not only impacted Danny and Chris but our whole team at Trinity.

For more information about Taylor’s Gift visit www.taylorsgift.org

The Road Ahead...2011 Logistics Survival

2010-11-01T11:55:00.000-04:00

It's definitely the planning and strategizing time of year. For some cmopanies, it's looking ahead eagerly for 2011. Others are more apprehensive, unsure, or even flat out nervous about what the year will hold. Hopefully, your company already has their plan complete and the company is all poised moving forward in a positive gung ho motion. Whether you're of a half full or half empty mentality, logistics planning is one area you can't afford to skimp on when it comes to your corporate strategy. If the last several years have taught us anything, it's clear that transportation is one of the largest portions of your expenditures throughout the year,and that trend isn't going away.

So how do you prepare for the year ahead? Without a crystal ball and first hand knowledge on the emerging trends, how ready will your company be when the ball drops Dec 31st?

Take a moment to register for our free webinar. Everyone who's involved in either logistics, supply chain planning, or looking for ways to improve profits or reduce costs should plan on attending this event. Definitely a "must-attend" for equipping your entire team.

Operation Safe Driver

2010-10-27T11:50:00.000-04:00

By Ashley Connolly
Carrier Relations Specialist

During the week of October 17th through the 23rd, the Commercial Vehicle Safety Alliance will host its annual Operation Safe Driver Campaign. The week will kick off with a news conference in Phoenix, AZ and is sponsored by the CVSA, FMCSA, and OSD along with other industry partners. The week will include increased enforcement to all drivers on roads that are considered to be “high crash corridors with high CMV (Commercial Motor Vehicle) traffic”.

Along with the enforcement efforts there will be education for commercial drivers, passenger car drivers, government officials, industry players, and the public on the hazards of operation around large trucks and buses, distracted driving, and not buckling up. For more information on events during the week please visit the CVSA website.

Truck drivers need to be aware that a large part of this initiative is increased roadside inspections. To reduce your chances of being targeted this week there are several things you should be extra careful to do, but really should be doing all the time anyway.

Please make sure you
• are buckled up
• not distracted with paperwork (or anything else) while driving
• that you drive the posted speed limit
• are NOT on your cell phone in states with hands free device laws

In 88% of crashes involving commercial motor vehicles the drivers of the passenger car, the truck, or both were at fault. This week is to crack down on ALL drivers who do not responsibly share the road or create conditions that increase the likely hood of a crash occurrence, please do not be one of those drivers.

The Unintended Consequences of CSA 2010 Part 2

2010-10-26T11:46:00.000-04:00

By Ashley Connollydescribe the image
Carrier Relations Specialist

In my last CSA-related blog from October 8th, I discussed some problems with the percentage of reported crashes and how they vary by state, along with the consequences of reporting on all crashes, regardless of fault. To continue, let's take a look at how carriers may attempt to get around this system (whether or not the system is creating the poor scores).

The new CSA 2010 program is intended to “intervene” carriers into better safety performances with new measures and tools, however in the official CSA FAQ's, number 22 reads,

Q: "In the proposed new methodology, how can an Unfit carrier return to service?

A: The process of a carrier getting back into service once they are determined Unfit is expected to remain the same as today."

How does an unfit carrier return to service today you may ask? Good question! He or she just applies for a new MC#! After thoroughly reading the “New Entrant Safety Assurance” on the FMCSA site, which was effective as of February 17, 2009, I have found nothing that says a carrier that was previously put out of service cannot reapply as a new entrant so long as the repairs that put them out of service have been corrected. There is a 17 point safety inspection that makes sure carriers only use drivers with CDL’s, drivers that do not have controlled substance violations, and that the company adheres to what we all can only hope is the bare minimum of best business practices.

What do you think a carrier will do if they are in a state that reports 80-90% of crashes regardless of fault who is meeting the threshold for intervention, thus risking a bad score (blog part 1)? It makes sense for he/she to just let their insurance expire and reapply for a new MC#, right? The problem for shippers becomes knowing the difference between this carrier and the one who reapplied for an MC# due to actually failing multiple roadside inspections. Most likely the shipper won't realize the difference until it’s too late, and the measure that was supposed to reduce the number of crashes has backfired and allowed the "crash causers" to restart with a clean slate.

As if the reasons above were not enough for a carrier to just operate under a new mc#, let me add that drivers are also evaluated under the new system. However, they are not assigned safety ratings, only a violation history of which it is very unclear exactly how the driver is going to be identified.

The drivers’ violation record does not affect the carriers' data record before or after employment, but will be there for two years regardless of whether they terminate an employee or not. Yet another reason for a carrier to just get out of and then right back into business. They can keep their drivers, whose numbers now do not apply, and the company starts back at 0.

Stayed tuned for our next "episode" on how accurate the scores really are in relation to crash causation.

New Emissions Regulations Will Affect Truckers...In a Good or Bad Way?

2010-10-25T11:48:00.000-04:00

The EPA and the DOT recently announced plans to go ahead with a proposal to require new trucks after 2014 (everything from semi's to F series Fords) to meet their new efficiency regulations. Their plan predicts a 20% reduction in emissions. President Obama backs the plan and was quoted speaking about the savings he predicts this would save truckers on fuel and the consumers in pricing.

How much are these "efficient" new semi's going to cost the every day trucker that is already struggling to make ends meet with the truck payment he or she has now? This type of research and technology to create "fuel efficient" vehicles doesn't come cheap, will the reduced savings in diesel really offset the increased price of the equipment? Will the proposed and predicted "reduction in fuel cost" be passed along to the shippers paying the freight bill?

What do you think?

The Unintended Consequences of CSA 2010 Part 1

2010-10-24T11:51:00.000-04:00

By: Ashley Connolly
Carrier Relations Specialist

CSA 2010 rings in all of our ears like Jan saying “Marsha, Marsha, Marsha” on the Brady Bunch, so for those of you that are keeping up with the Comprehensive Safety Analysis plan rolling out this December, I’m not going to bore you with the details. You can go to the official CSA 2010 website for that.

What I will talk about are the things to worry about if things remain unchanged when CSA is implemented in December. Most of the things you have to be concerned about aren't being clearly exposed. For example, "Safety Events” reporting will vary greatly from state to state. Under the current SafeStat system, the percent of DOT crashes being reported to the MCMIS ranges greatly. It goes from 80 - 90% in Indiana, Missouri, and Kansas all the way down to less than 30% in Florida and Arizona.

The new regulations count and show all DOT (reported) crashes on a carrier's report regardless of fault. So, legally parked truck gets hit, suicidal guy runs out into traffic, or any other “but it’s not my fault” situations are going to show up on your CSA report and stay there for two years. Get too many of these wrong places at the wrong time, "sorry Charlie" incidents, and you can be up for intervention right next to the careless guy who ran into a bunch of those parked trucks.

Let's connect the two, shall we? The new regs report all crashes, and depending on what state you're in...see what I'm getting at? Like I said, you have something to worry about.

SHIPPERS-Let's say your primary carrier base runs primarily in one of the states that is going to be reporting their data 80 - 90% of the time. You are going to feel the effects of CSA 2010 a lot harder and faster than if you were using carriers running in the states only reporting 30% of the time. Even if you are doing everything YOU can to make sure you are compliant and choosing the best carriers. Now is the time to ask your carrier base what they are seeing in their Data Preview. Don't be too hasty to cast aside providers who aren't scoring A+ on the test. As you'll read in my future posts, it's the test that could arguably be wrong.

CARRIERS-It’s a great time to check out your Data Preview on the CSA site. Don’t be afraid to tell your customers that you’re scoring a little lower than you had expected. Now is the time to get everything in order to show you are making an improvement.

Stay tuned to my future posts about CSA 2010 issues and what the possible consequences will be if it goes into effect "as-is".
We'll talk more about the following topics:
• The percentage of DOT crashes that are being reported
• New MC#, clean slate, kind of…
• The accuracy of the scores to show relation to crash causation
• Violation Weighting and Crash Relationship
• And I’m leaving this one open for suggestions, let me know what you think is an unintended consequence of the regulation?

Trinity Pats Drivers on the Back

2010-09-23T11:42:00.000-04:00

On Tuesday, September 21st, Trinity team members Ashley Connolly and Melynda Hitchens set up shop inside the fuel stop of the Travelcenters of America location off I95 in Jessup, Maryland. The purpose was to spend all day thanking truckers for keeping America, and Trinity, rolling with their dedication to quality service and safe transit.

In showing thanks, each driver that passed received a lunch cooler filled with treats as well as a t shirt to wear proudly displaying their status as a truck driver along with our key theme, "Pat a driver on the back" for National Truck Driver Appreciation Week. To take it to the next level, the carriers that Trinity uses the most frequently on customer freight from each of their Regional Service Centers received gifts in the mail to share with their drivers.

Our celebration is in support of the American Trucking Association's official week long event, and Trinity has participated annually for 8 years. As a third party logistics provider, we rely on the quality dependable service from truckers to succeed, so we make it a point to show our thanks every day, and even more on Truck Driver Appreciation Week!

Snacks were donated by Dole Fresh Fruit (bananas), D&S Factors (Idaho's Spudbars), and Kraft-Nabisco (cookies). Pens were donated by 1st Guard Corporation.

Trinity Appreciates Truckers During Truck Driver Appreciation Week

2010-09-22T11:54:00.000-04:00

Trinity Transport, Inc. appreciates America's truck drivers. We are celebrating National Truck Driver Appreciation Week, sponsored by the American Trucking Associationhttp://www.truckline.com, from Sept 19-25th.

Thanks for keeping America rolling!

You're invited to our website to book a load now and find out all about our quick payment options. Just click on the banner above.

Please join us on Sept 21st at the TA truckstop off I95 in Jessup, MD from 9-3. Our representatives will be there thanking truckers in person and the first 300 to come by receive free gifts.

Legend Transportation and Premier Transportation Management Group Affiliates with the Trinity Transport Family of Companies

2010-08-09T11:39:00.000-04:00

Trinity Transport, Inc. has announced the availability of three new sales and consulting locations through its affiliation with the Legend Transportation Group located in Phoenix, Arizona and Fond du Lac, Wisconsin as well as Premier Transportation Group located in Seattle, Washington.Legend Transportation and Premier Transportation, (merging as Trinity Transportation Group LLC), will now offer the full Trinity suite of services to include truckload logistics, LTL, intermodal, international, and freight management complete with Trinity’s TMS software division, “Trinity Customized Logistics.” Trinity Transport, headquartered in Seaford, Delaware, has served as a third party logistics provider since 1979. Trinity has ranked in the top 25 freight brokerages since 2003 by Transport Topics magazine.

“We are excited to welcome Legend Transportation Group and Premier Transportation Management Group into the Trinity family, and are eager to further develop relationships with clients in the west and southwest with the availability of this sales location,” shared Jeff Banning, CTB, President and CEO of Trinity Transport.

Visit http://legendtransgroup.com for more information.

7th Annual Trinity Foundation Golf Tournament

2010-07-21T11:38:00.000-04:00

The 7th Annual Trinity Foundation Golf Tournament will be held August 28th at Heritage Shores Golf Club in Bridgeville, DE. The tournament is a charity event to raise money for the Trinity Foundation, a non-profit organization founded in 2005 by the employees of Trinity Transport, Inc. In 2009, the golf tournament succeeded in raising over $22,000 despite the bad weather! Special thanks go out to our top sponsors so far for 2010, including Nanticoke Memorial Hospital, Trinity Transport, Inc., ARM Transportation, Bank of America, Archer & Greiner Attorneys at Law, and the Banning Foundation, with more expected to follow.

The Foundation uses the annual pool of funds to focus donations to three main causes. These are DYLA (Delaware Youth Leadership Academy), the American Cancer Society, and the American Heart Association. Other community support is provided to other worthy community causes such as the DE Teen Challenge, Down Syndrome Guild, DE Humane Society, and Muscular Dystrophy to name a few.

Registration will begin at 7:30 am and shot gun starts at 8:30 am. Our 2010 focus is to host 120 golfers and find generous sponsors to collectively meet our goal of $20,000. The cost to play in the tournament is $100.00 per player and sponsorships begin at $125. Players will receive a gift bag, round of golf, and a chance to win a car along with many other prizes. There will also be food followed by awards. If you are interested in playing with a team of 4 or sponsoring the event, please visit www.ttifoundation.org or email foundation@trinitytransport.com

Trinity Reached Platinum Level Sponsor at Relay for Life Event

2010-06-14T11:29:00.000-04:00

Trinity employees united together and organized a team to participate in the American Cancer Society's annual Western Sussex County Relay for Life event June 4th and 5th. Participants for the past 11 years, the passion of Trinity's Relay Team grows and grows. Most attribute this to the fact that throughout Trinity and our community, there are cancer survivors and others who have been personally touched in some way by the disease. Team Trinity is an active participant in supporting the services offered to survivors and their families, helping to educate on prevention, and to find a cure! Team Trinity lives the motto, "Celebrate, Remember, and Fight Back."Thanks to the generous support of the Trinity Foundation and their hope sponsorship of $8,500, Team Trinity raised $16,894.23 to contribute to the collective amazing efforts of the Western Sussex group and Team Trinity was excited
to reach the platinum level for sponsorship for the first time. Trinity would like to extend a personal thanks to everyone who was involved in the West Sussex Relay and looks forward to another successful event next year!

Trinity Earns 5 Diamond Broker Distinction

2010-05-28T12:52:00.000-04:00

The Internet Truckstop and TIA have jointly launched the TIA Performance Certified Diamond Broker Program on Internet Truckstop's website. What this means is that as TIA Performance Certified Member, Trinity is identified with the top distinction, five blue diamonds based on the size of our broker surety bond, which is now $250,000 (set voluntarily higher than required by law). When carriers view the 5 blue diamonds next to our load postings, they can recognize the quality of the TIA P3 program and of Trinity's shipments.As carriers are looking for a quality broker with quality available loads and fair business operations, this distinction sets Trinity apart. Our surety bond is set higher than the $10,000 required by law to $250,000 to demonstrate and reassure our ethical business practices with all motor carriers.

Approved Trinity carriers can view our available loads at no charge online by logging in with their user name and password. To obtain your login, contact our customer service team (866) Trinity or use the Forgot Password link at the top of our webpage.

Team Trinity recognized as a Start! Fit-Friendly Company

2010-05-27T12:51:00.000-04:00

It is truly an honor to be able to announce that Team Trinity has been recognized as Start! Fit-Friendly Company. For those of you who are not yet familiar with the Start! Fit-Friendly Companies Recognition program, it is an award given by the American Heart Association's Start! initiative. It is intended to be a catalyst for positive change in the workplace across America. It recognizes companies that demonstrate progressive leadership by making the health and wellness of their employees a priority.
We have been recognized at the Gold level, which means that:

o We offer all employees physical activity support at the worksite
o We have increased the number of healthy eating options available to you as employees
o We promote a wellness culture at the worksite
o We embrace at least nine criteria as outlined by the American Heart Association in the areas of physical activity, nutrition and culture

As a Start! Fit-Friendly Company, we are true corporate trailblazers who have adapted the very spirit of the Start! initiative and have the vision to see the positive impact Start! will have on the health and wellness of employees and the company.

First Annual Touch A Truck Event

2010-05-26T11:14:00.000-04:00

Together, the Banning Foundation and Trinity Foundation hosted their first annual
Touch A Truck event from 10 am to 2 pm on May 21st, 2010.

The event was a success in bringing the community together and keeping smiles on kids faces while they had so much fun touching trucks and other exciting vehicles, and meeting our local heroes.

To stimulate the public, the first 50 kids that entered Trinity Transport's parking lot received a free Touch A Truck T-shirt. There were plenty of sno cones, cotton candy, pizza, and popcorn to eat and share, and a dunking booth, face painting, and a horn show to entertain the whole crowd. Team Trinity appreciates and thanks all the sponsors, volunteers, participants, and attendees for helping make this event happen, and we look forward to hosting the Touch A Truck event again next year!
Visit Trinity's Facebook page to see more Touch A Truck event photos.

Trinity Launches New Customized Logistics Division

2010-04-27T11:08:00.000-04:00

Trinity Transport, Inc., a third-party logistics supplier of transportation solutions, announced a new service division to serve shippers in various industries from retail to manufacturing.

Trinity Customized Logistics (TCL) was initially launched in response to Trinity's client freight management needs, and has been extended to prospective new customers in need of a more tailored cost-savings approach.

"Our shippers needed to find methods to improve their processes in order to reduce logistics costs to offset the downturn in the economy. Clients were looking for solutions, and by pairing our customized support approach with leading transportation management software, Trinity created opportunities for operational savings between 10-30% of overhead expenses," shared Amy Proctor, Director of Logistics Sales for TCL.

Trinity Customized Logistics is made up of a team of experienced Trinity team members that leverages over thirty years of experience in the industry with a web-based transportation management system. Unlike other TMS solutions, Trinity is unique in that it offers complete support for its software, while other systems require large capital expenditures to simply purchase stand-alone technology.

Jeff Banning, CEO and President of Trinity Transport, Inc., summarized what makes the new division so beneficial. "TCL is an optimal solution for shippers that are looking for ways to enhance visibility and reporting while taking advantage of cost savings from automation, optimization, and other solutions created by our team. We can be as involved or as hands-off as the client would like, but the goal is to lend our experience and recommendations to increase their profit margins, bottom line."

Pricing During the Capacity Crunch

2010-03-12T11:06:00.000-05:00

By Adam Miller
Pricing Coordinator

There are two fundamental pressures on freight cost-freight and trucks. Everyone expected an overall decrease in capacity as the number of transportation providers realigned with the amount of freight being shipped. What was not so expected was the magnitude with which this tightening continues and the degree it would affect current pricing. So a lot of people are asking themselves-why is capacity still getting so much worse? The simple answer is that we're still seeing repercussions of the recession play out in the market.

Without getting into the overwhelming details of why the global economy tanked over the last two years, let's suffice to say that freight has gone down. In fact, the American Trucking Association listed the Freight Tonnage Index in June 2009 as below its base level set in 2000. However, overcapacity did not balance itself out as carriers operated at or below costs to stay in business, further driving down prices already depressed from the tumbling economy. At the same time, banks held back from collecting on bad debts from insolvent carriers because there was no market for the used equipment the carriers owed on. This was simply not sustainable, and led thousands of carriers to shut down. Many carriers are still holding on just long enough to close their doors with the arrival of this recent tax season.

But aren't things starting to turn around? Yes, but herein lies the pricing dilemma. Most leading indicators point towards a bottoming out of the economy, and in several areas a small bounce-back. This small increase in freight, combined with decreasing capacity, is resulting in a pricing market more controlled by the carriers than the shippers (as it's been in previous years). Furthermore, since many shippers have already renewed their freight bids and budgeted their transportation costs for 2010, they are now finding themselves unable to find trucks to move their freight, especially at the undervalued rates they tried to lock in for the year.

So where are we now? Pricing as a whole is very erratic as both sides try to find a balance, but is increasing at a surprisingly quick rate in many markets. Carriers are desperately trying to make up for some of the losses they've endured over the last year while the general public is simply not yet spending enough to allow the businesses to afford it. Service failures and price increases are starting to force shippers that had benefited from the price-shopping discounts of last year to once again turn to service-oriented relationships with providers they know they can count on. Pricing is just a starting point for most of our relationships, but it is the service, communication, understanding, and trust that we build on top of it that will keep us all moving towards a brighter future.

Why Ship Intermodal?

2010-02-25T10:48:00.002-05:00

Hello- My name is John Patton, I am Trinity's Intermodal Manager. In light of the ever-present desire to cut logistics costs, shippers are looking to companies like Trinity to offer methods to achieve this goal. One very effective suggestion and service we offer is to move your freight via railways, called "intermodal". In addition to being a more cost-effective method of transporting goods, intermodal services offer many more benefits you may not be aware of.

First of all, the railways offer extra capacity for moving your freight when the over-the-road trucks are tight, or hard to come by. The intermodal industry continues to add new 53ft containers and chassis to their fleets, whereas many trucking firms are being forced out of business due to the economy. With Trinity as your solutions provider, we are able to tap these additional resources to avoid having your product sit on the dock for days waiting for a truck to come available, which may occur in seasonal periods such as during produce season.

In addition to the extra capacity, you will generally see the rail carriers continue to operate in times of inclement weather conditions, while the highway infrastructure is often shut down and thus the over-the-road trucks come to a stand still.

The rail industry has been working hard to reduce carbon emissions into the atmosphere. In fact, all rail carriers have a program in place to support the "green" initiative in the country. An intermodal train will emit 6.8lbs of carbon emissions for every 100 ton miles compared to an over-the-road truck that emits 19.8lbs. That same intermodal train can move one ton of intermodal freight approximately 830 miles on ONE single gallon of diesel fuel! Trinity Transport, as a provider of this service, fully supports the green initiative, and is a member of the EPA SmartWay Transport Partnership that is committed to reducing carbon imprints annually.

Finally, I'd like to touch on the pure convenience of shipping intermodal. Since Trinity works directly with the draymen (local trucking company) when picking up and delivering your freight, Trinity has a lot more flexibility for accommodating your needs. We also have real-time tracking electronically of the your shipment from the time the load begins till the time the load empties.

If you are interested in saving money in your transportation budget, helping the environment by going green, finding an extra source of capacity when trucks are tight, and adding convenience and visibility to your shipments, I invite you to contact us for a rate today. It would be our pleasure to serve you, the Trinity Way!

Trinity's Float Named Chamber's Choice in Christmas Parade

2009-12-10T14:25:00.000-05:00

On Sunday December 6th, Team Trinity participated in the Seaford Christmas parade. The parade theme was "The Gifts of Christmas" so our float theme paid tribute to the American Trucking Association theme, "Good Stuff Trucks Bring It" with a slight modification to "Good Gifts, Trucks Bring Em!"

A flatbed was donated by Art Collins Trucking and driven by TDS driver volunteer, Wayne Wroten. The float held a reindeer-drawn sleigh, presents, a hand made fireplace (courtesy of Mr. Gray O'Bier), tree, and Mrs. Claus (Burnice Lankford). Trinity team members and children rode on the flatbed and walked along the side, singing carols and handing out candy. Riding with the float, Michael O'Bier drove the Trinity/TDS mini semi, powered with a go-kart engine.

Team Trinity & TDS were honored with the Chamber's Choice award. Congratulations to the float committee for pulling off such a fantastic event with creativity and community spirit.

Hats off to committee members: Teri O'Bier, Jenni Myers, Kendra Sellers, Christy Gorski, Adam Miller, Elisha Brown, Burnice Lankford, Stephanie Barrall, and Brandy McMullen. Special thanks to additional float helpers and volunteers: Art Collins Trucking, Wayne Wroten, Darrel Banning, Gray O'Bier, Michael O'Bier, Dustin O'Bier, Megan Lewis, Mr. & Mrs. Jay Zappa, Jeff Banning, Lindsey Banning, Jessica Banning, Jodi Webb, Megan O'Day, Coty Lineweaver, & Robin Hudson.

Trinity Appreciates Truckers at TA in Jessup, MD Nov 4th

2009-11-06T18:46:00.000-05:00

In celebration of National Truck Driver Appreciation Week, Trinity Transport spent November 4th camped out in the fuel office in a Jessup, MD TravelCenters of America (TA) truck stop.

L to R: Ashley C, Driver Francis S. (Dot Transp), Melynda H.Over 300 drivers were personally thanked by our Trinity representatives, Ashley Connolly, Brandy McMullen, and Melynda Hitchens, from 9 a.m. until 3 p.m. Pictured at left is driver Francis (Pee Wee) Saunders of DOT Transportation in Illinois with Ashley and Melynda.

Drivers received reusable travel coolers filled with snacks and handy items like pens and log book rulers. Snacks were donated by Dole Fresh Fruit (bananas), D&S Factors (Idaho's Spudbars), and Kraft-Nabisco (cookies). Pens were donated by 1st Guard Corporation.

In addition to sponsoring the coolers and rulers, Trinity supplied t-shirts with messaging to "Pat a driver on the back" to pass along the message of the week all year round.

"This is absolutely amazing," remarked a driver present for the event. "I've never seen anything like this in my thirty years on the road. Free gifts, no strings, and someone appreciating truck drivers. Trinity is to be commended for their participation!"

Special thanks go out to TravelCenters of America for their support of the event.

Happy Truck Driver Appreciation Week

2009-10-30T12:52:00.000-04:00

Trinity Transport, Inc. appreciates America's truck drivers.
Thanks for keeping America rolling!

We invite you to learn more about the services we offer by visiting our corporate site. Click on the banner above to read about our quick pay program, truckstop scanning, and available loads.

Trinity's "Good Stuff" Video, a Tribute to Truckers!

2009-10-14T18:00:00.000-04:00

Trinity officially entered this video in the American Trucking Association's contest for National Truck Driver Appreciation Week. The video is our take on why the professional truck driver is essential to America. We had to keep it under 2 mins, and the rules stated it could not be professionally made.

Our team members perform a series of four skits to show our appreciation of truck drivers. We've fully embraced the American Trucking Association's theme, "Good Stuff. Trucks Bring It!". Our skits aim to demonstrate that if you consume it, wear it, depend on it, or rely on it, trucks bring it!

Trinity Celebrates Fit-Friendly Award at Annual Heart Walk

2009-10-06T14:01:00.000-04:00

Each year,employees representing the corporate headquarters of Trinity Transport (Seaford, Delaware) form the "Trinity Has Heart" team to support the fight against disability and death from America's No. 1 killer--cardiovascular disease.

The American Heart Association provides the largest source of non-governmental funding for cardiovascular research in the country. Trinity was named a Fit-Friendly Company for the third straight year for workplace efforts to encourage healthy eating, exercising, and physical activity to promote healthier lifestyles.

The Trinity Foundation donated $13,000 towards this cause. For more information on the American Heart Association's national campaigns please visit www.americanheart.org or www.goredforwomen.org.

Rain Doesn't Dampen Tournament Success

2009-09-28T12:59:00.000-04:00

The 6th Annual "Putt for Life" Golf Tournament was scheduled at Heritage Shores in Bridgeville on August 22nd. Heavy rains prohibited the tournament from commencing, leaving the course too soaked to play.

Despite the rainout, the event succeeding in raising over $22,000 as a charity event for the Trinity Foundation, a non-profit organization founded in 2005 by the employees of Trinity Transport of Seaford. Golfers were given gift bags, door prizes and vouchers for the course and restaurant to play and dine at their convenience.

There were 116 golfers this year and 80 sponsors. Host sponsors included Discover Bank and Trinity Transport. The lunch sponsor was Aljex Software, and the other top level sponsors included Nanticoke Memorial, Management & Training Corporation, Trinity Distribution Services and Trinity Transport's Agent Division. The hole-in-one car sponsor was Pohanka Mercedes Benz of Salisbury, MD. For a complete list of sponsors, visit www.puttforlife.org/sponsor.

Trinity Foundation Director, Adam Miller, shared his thoughts on the successful event. "Despite the unfortunate weather, we appreciate the good sportsmanship and understanding exhibited during the event. From the Trinity Foundation and Trinity Transport, thank you for your continued support of this annual fundraiser."

About Trinity Foundation
The Trinity Foundation is a 501 (c)(3) non-profit organization. The Foundation was created in 2005 to give structure to the efforts of the employees of Trinity Transport to give back to the community. Trinity has a long history of volunteer service, and more than 80 volunteers perform community service each year on behalf of the organization.

Paperwork is a Pain!

2009-07-21T17:15:00.000-04:00

I was stupefied! There really is no other way to describe how I felt after listening to a shipper recently describe their carrier set up process.

I'd been invited to submit a bid to handle shipping for this shipper, and like the good salesperson I am, I gave her a follow up call fifteen minutes later to see how we ranked. The conversation that followed led me to wonder how many other companies are doing business the same way?

Read a summary of our conversation below, (as best I can recall it!). I welcome your comments, let me know if your process is similar, I'm interested to see who else out there has the pain of paperwork like she did.

Shipper: "Well, Laura, you're the only one that had returned my email so far."

Laura: "How many did you send out?"

Shipper: "Well, I gotta get at least five or six quotes on each load, my bosses want to make sure I'm getting the best price and that we aren't getting overcharged. You know how it is now-adays."

Laura: "Yep, sure do! But tell me, I know you move at least five loads a day out of there, how do you keep track of all the different rates?"

Shipper: "Oh I have a folder for each of our salespeople. Whenever they send their requests for quotes to me on email, I print it out and staple each carrier's email to the request. That way if they come back later and need to know what the other options were, I have them right here."

For just five quotes per day, my customer was printing out at least 30 sheets daily, 150 per week, 600 a month, and 7,200 a year! Somebody call the EPA, this woman's going to single handedly bump up global warming by 20 years!

Laura: "Wow! Your desk is officially a graveyard for trees!"

Shipper: (laughing) "You got that right! Any more, and I'll need to call search and rescue to dig me out!"

Laura: "So, what do you do when it comes time to ship?"

Shipper: "Sometimes I just remember who the cheapest carrier was, so call them to make sure they have a truck, and email them the shipment details. If they don't have a truck, then I go back to the files. I'm pretty organized, but it's a pain to dig it back out and go back and compare again. It's never apples to apples, some of them charge for handling, some charge extra for delivery appointments, and I have to make sure to include that in when I line them up next to each other."

Laura: (shaking her head in disbelief despite being verbal vs. visible) "Ever wonder if there's an easier way?"

Shipper: "Well, to be honest, I guess I never took the time to think about it, I'm just on autopilot most days, trying to get as much done as possible before the salesmen start hounding me!"

Laura: "Ok, well sounds like you need a little TLC from "TCL". It's a product named after both our company and also what it does, "Trinity Customized Logistics". Basically, it offers the convenience of a web-based freight management program and the reliability of a service-oriented support staff."

"It's what the industry refers to as a "TMS", or transportation management system. It's software that allows you to manage ALL transportation operations by automating many of the manual processes like you're describing; rate quoting, freight tendering, and shipment tracking."

"The process is simple, you send out requests for quotes through the software. When carriers respond to your request, they could do it through this system, too, which automatically archives the rates for future reference. The beauty of the system is the sorting...it sorts the rates from lowest to highest for you and then automatically tenders the freight in a waterfall effect until someone had a truck available and accepts the offer!"

"Think of all the time you could save...not to mention the trees!"

Shipper: "Yeah, then I could use my spare time to clear out some of these filing cabinets and get my office back! Ok, Laura, come show it to me and the boss, let's see what your TCL system can do in action!"

by Laura Willey, Trinity Account Manager

Laura Willey is an Acount Manager located in the Seaford, DE Trinity Transport Headquarters office. She's been part of the Trinity team since 2006, is married to Jason Willey, and has two twins, Mason and Jocelyn, two years old. Laura specializes in her knowledge of truckload and LTL logistics, and also helps her clients with international and intermodal needs. For more information on the software solutions she discussed, contact her at (800) 871-8717 or by e-mail.

Obama To Set New Vehicle Emissions Standards Tomorrow

2009-05-18T18:26:00.000-04:00

Obama to Set New Vehicle Rules, First Carbon Limit
View Full Text Article Here
By Kim Chipman and John Hughes

May 18 (Bloomberg) -- President Barack Obama will announce tomorrow new rules for vehicle emissions and mileage, setting the first-ever nationwide standard for greenhouse-gas pollution, according to people familiar with the plan.

The limit will be coordinated with new national fuel economy standards for cars and trucks, said the people, who asked not to be identified before the announcement.

The action, which follows California's push for approval of its own proposed standards, is the "biggest single step to curb global warming," Dan Becker, director of the environmental group Safe Climate Campaign, said in an interview.

The White House's top energy, environment and transportation officials have been meeting with automaker executives and other groups as the administration worked to craft a single national policy for vehicle emissions. It seeks to avoid the confusion of different state rules across the country.

End of Bloomberg Content

Sound off, America, what is your feeling on the pending regulation? What effects do you see this having on the trucking industry and how long before Obama places regulations on the big rigs?

Trinity President, Jeff Banning, presents "Servant Leadership" to local University

2009-04-10T10:25:00.000-04:00

On April 9th, 2009, President/CEO Jeff Banning, CTB, made a presentation to an assembly of Salisbury University's Perdue School of Business students. The topic was, "The Narrow Path-Leading the Trinity Way", discussing Servant Leadership among other leadership principles. Click here to view the powerpoint presentation and local media coverage that accompanied his speech. Additionally, you can view a suggested reading list for developing leaders.

Vote for Trinity

2009-03-27T11:55:00.000-04:00

We are thankful you've allowed us the opportunity to serve as your third party logistics provider.

We appreciate the loyal business from our customers, and the superior service from our carriers, and we'd also appreciate your vote!

If you feel that we provide excellent service, please click on the VOTE FOR TRINITY button above. You'll be taken to this year's Inbound Logistics Excellence Survey to cast your vote for Trinity to be included in this year's list of winners.

Invite your coworkers or associates to visit our blog too so they may vote as well. We appreciate your input, and thanks for rocking the vote!

Trinity Joins Responsible Care

2009-03-09T05:09:00.000-04:00

Trinity Transport, Inc. has earned membership into the Responsible Care Initiative sponsored by the American Chemistry Council by demonstrating their commitment to upholding the principles and practices in accordance with the organization's mission for safe practices. Responsible Care is the chemical industry's initiative that demonstrates the industry's commitment to continuous improvements in health, safety, and environmental performance. Trinity Transport is committed to the safe handling and transportation of chemical shipments.

Trinity has entered the Responsible Care Initiative with an understanding that they will strive to uphold the requirements of the Responsible Care Management System as outlined by the American Chemistry Council. Trinity's goal is to implement a system that involves the entire company in policy establishment, implementation, measurement, improvements, review, and reporting.

Trinity Transport's purpose is to "continually improve people's lives by constantly striving to be our best". Additionally, the corporate theme for 2009 is "Advancing Excellence", striving to raise the bar together and achieve even higher results in everything they do, from serving customers to building better relationships with contracted motor carriers. "By participating in Responsible Care, our dual purposes will be achieved as we continually improve processes and service, thus advancing excellence", shared Linda Barnett, Manager of International Services & Responsible Care.

To learn more about the Responsible Care initiative visit www.americanchemistry.com/responsiblecare

The American Economy Problem

2009-01-27T15:57:00.000-05:00

By Robert Farrell, VP of Corporate Risk

How did the American economy get turned upside down so quickly? To understand the answer to this question one must accept there are two main economic stimulants to the American economy; namely, consumer spending and government spending. One must also acknowledge America and the world are Debtor Societies. As such, we pay for goods and services not with cash at consumption (point of sale) but through formal or informal promises to pay our debts within specific terms and at specific or variable rates of interest. When the two above economic stimulants stop or slow they invite economic slowdowns. This economic slowdown can introduce economic events such as inflation, recession, deflation and stagflation! Surely, the American public has heard these four words communicated through the media over the past several months.

What are inflation, recession, deflation and stagflation? There are several accepted definitions for these four words. Let us deal with the most common definitions and the economic impact they have on our economy.

(1) Inflation is best defined as a decline in the real value of money that equates to a loss of purchasing power. Inflation is usually brought about by excessive growth in money supply, the printing of money. Therefore, the value of the American currency declines against the world currency. We spend more (cost) for what we want to purchase!

(2) Recession is a significant decline in economic activity spread across the Nation’s economy, Gross Domestic Product (GDP), for at least two consecutive quarters.

(3) Deflation is a persistent decrease in the general price level of goods and services but only measured when annual inflation is below zero percent. Deflation should not be confused with a temporary fall in prices; instead, it is a sustained fall in general prices.

(4) Stagflation is best defined as a period of rising prices and unemployment but little growth in consumer demand or business activity. There are essentially two causes of Stagflation. First, stagflation can result when an economy is slowed by an unfavorable supply shock such as an increase in the price of oil which trends to raise prices at the same time it slows the economy by making production less profitable. Second, is from inappropriate macroeconomic policies; namely, when central banks cause inflation by permitting excessive growth in money supply and the government simultaneously causes stagflation by excessive regulation of goods market and labor markets (price controls). We recently observed the above Stagflation definitions via recent high prices in a barrel

of crude oil which resulted in higher gasoline prices. Stagflation is at hand through our government’s bailout of select private businesses but at the potential dangerous demise of The Free Enterprise System!

There are several adverse economic by-products of the above two stimulant reductions but I will only address two. The first is the erosion of real estate values and equity. The real estate issue is best defined as the reduction of the main asset and economic safety net of all American consumers, the equity in their homes. This man made tragedy has not reach its climax of hardships and no stabilization of real estate values is in sight.

How did R/E equity erode? For thirty-five years, America depended on the safety and soundness of Fannie Mae that was established as a Federal Agency in 1938. In 1968, Fannie Mae was chartered by Congress as a private stockholder owned company. Fannie Mae is a government sponsored enterprise that provides liquidity and stability to the housing and mortgage markets. Fannie Mae operates in the secondary mortgage markets.

Rather than making mortgage loans direct to the consumer, they work with mortgage bankers, brokers and primary mortgage markets partners to insure funds are available to finance the acquisition of conforming residential mortgages and rental property at affordable costs.

To insure Fannie Mae is liquidity sound for providing mortgage funds to be lent, they fund their mortgage investments primarily by issuing debt securities in the domestic and international capital markets. Fannie Mae packages their instruments in $500MM increments for sale into the secondary markets. When mortgage lending standards of Fannie Mae was constant, from 1938 through 1968, there was never a problem with home values, required return on investment or a lagging American dollar. Prudent lending and investment standards were wrongly altered in 1972, under the Carter Administration. Mortgage lending standards were further decimated in the 1990s, under the Clinton Administration. President Clinton insisted that banks approve any mortgage loan to

any borrower. To do so, the value of homes ere artificially increased to meet the loanto value ratio while providing the economic and lending cover to offset down payment and closing cost requirements. This is the main reason home values were artificiallyincreased and the consumer’s R/E equity has subsequently eroded!

The second issue is overzealous Congressional legislators and legislation! Legislators removed proven real estate lending procedures and replaced them with new socialistic and failed legislation processes. The motivation was to allow everyone to financed a home to live in regardless if they could afford it. This flawed process has resulted in and continues to breed bankruptcies and foreclosures throughout America. The Federal Government legislates how banks must operate from a financial and fiduciary standard of safety and soundness. To stay in compliance with Federal regulations, banks must meet these federal mandates. Sometimes in complying with these mandates, banks forgot the money they lend is not theirs but belonged to depositors, taxpayers and stockholders.

Congressional Legislatures voted to approve The Community Re-Investment Act (CRA), introduced by the Carter Administration. CRA legislation forced banks to approve mortgage loans to low and low/moderate income families under less qualifying mortgage loan standards than conventional mortgage financing requirements. Need I say more?

CRA gave birth to Freddie Mac underwriting standards so non-conforming loans can bepackaged and sold into the secondary mortgage markets much like the Fannie Mae conventional mortgage loans. The Clinton Administration forced more modified open ended poorly conceived credit processes upon the banking industry for the mandatory financing of residential mortgages to low and low/moderate income families. This new

legislation led this Country into a failed and stalled credit crisis which strangles the economic life from balance sheets and income statements of businesses, industries and individuals! These now leveraged banks and other industries are being “bailed out” by the same government legislators who allowed this economic nightmare to happen. One more point of fact, this “bail out concept”, if allowed to continue, will destroy the Free

Enterprise System that has rescued this Country’s economy from worse scenarios than we are now facing.

If these socialistic economic concepts are allowed to continue there will be no recognized difference between excellence and failure. There will be no difference between an excellent worker and a job taker, no difference between telling the truth and telling a lie, and no difference between those who always give that extra effort to succeed in everything of importance to them and those who do not give a darn about how their performance defined them! In short, we will remove the words INCENTIVE and MOTIVATION from the dictionary. America’s economy will fall into a “Welfare Economy” for both individuals and businesses. That is why the final chapter has yet to be written about the American Economy and how it will affect you and me. Stay tuned, America.