5 LTL freight shipping secrets that save you money now Part 1 by Michael Rogers Shipping Expert
Michael Rogers
February 26, 2008
www.4way.com
Miker@4way.com
Have you ever wished that you had an "insider handbook" to help unravel the complexities of transportation management? Youīre in luck.
Here are five little-known insider secrets that can help you avoid thousands of dollars in losses and countless hours of frustration. Follow these simple guidelines as you select a carrier, and youīll eliminate many of your transportation management headaches.
Insider Secret #1: Checking Liability Limits Pays Off.
Before you choose a carrier, itīs important to know the liability limits, or insurance, they carry to cover your freight. Donīt assume that they will reimburse you 100 percent for damaged or lost shipments — even if it is their fault.
Since deregulation, carriers can limit their liability based on rates they charge, and they are not required to inform you of these limitations. For instance, most air cargo carriers limit their liability to 50 cents a pound. That means a 1,000-pound shipment valued at $6,000 would only be reimbursed at $500 if lost or damaged. Although this is an extreme case, it is not uncommon.
Many of the major common carriers have decreased the maximum liability from $25 a pound to $10 a pound. And recently, many have slipped in a "per piece, per pound" clause to further limit their financial responsibility for lost or damaged shipments. Hereīs how the "per piece, per pound" works against you:
Suppose you shipped 10 boxes of parts that totaled 1,000 pounds with a total net worth of more than $10,000. One of those boxes was worth more because it contained an expensive part needed to assemble the products in the other boxes. During shipping, that one box containing the critical part gets lost or damaged.
As long as no other liability limit was applied, you could claim up to $10,000 for that one box because the total shipment was covered (1,000 pounds x $10).
Under the "per piece, per pound" liability rule, the maximum you could claim for the same 100-pound box would be $1,000 (100 pounds x $10).Thatīs a $9,000 difference on the coverage of your shipment!
When a client comes to us, we ask the value of the shipment, so we can check the liability limits of the carrier and identify what is and isnīt covered. By knowing the risk in advance, our clients can protect themselves by purchasing additional insurance or by simply finding a different carrier with better coverage.
Look for Insider Secret # 2 next month or visit www.4way.com to download our ground-breaking whitepaper.
Miker@4way.com
Have you ever wished that you had an "insider handbook" to help unravel the complexities of transportation management? Youīre in luck.
Here are five little-known insider secrets that can help you avoid thousands of dollars in losses and countless hours of frustration. Follow these simple guidelines as you select a carrier, and youīll eliminate many of your transportation management headaches.
Insider Secret #1: Checking Liability Limits Pays Off.
Before you choose a carrier, itīs important to know the liability limits, or insurance, they carry to cover your freight. Donīt assume that they will reimburse you 100 percent for damaged or lost shipments — even if it is their fault.
Since deregulation, carriers can limit their liability based on rates they charge, and they are not required to inform you of these limitations. For instance, most air cargo carriers limit their liability to 50 cents a pound. That means a 1,000-pound shipment valued at $6,000 would only be reimbursed at $500 if lost or damaged. Although this is an extreme case, it is not uncommon.
Many of the major common carriers have decreased the maximum liability from $25 a pound to $10 a pound. And recently, many have slipped in a "per piece, per pound" clause to further limit their financial responsibility for lost or damaged shipments. Hereīs how the "per piece, per pound" works against you:
Suppose you shipped 10 boxes of parts that totaled 1,000 pounds with a total net worth of more than $10,000. One of those boxes was worth more because it contained an expensive part needed to assemble the products in the other boxes. During shipping, that one box containing the critical part gets lost or damaged.
As long as no other liability limit was applied, you could claim up to $10,000 for that one box because the total shipment was covered (1,000 pounds x $10).
Under the "per piece, per pound" liability rule, the maximum you could claim for the same 100-pound box would be $1,000 (100 pounds x $10).Thatīs a $9,000 difference on the coverage of your shipment!
When a client comes to us, we ask the value of the shipment, so we can check the liability limits of the carrier and identify what is and isnīt covered. By knowing the risk in advance, our clients can protect themselves by purchasing additional insurance or by simply finding a different carrier with better coverage.
Look for Insider Secret # 2 next month or visit www.4way.com to download our ground-breaking whitepaper.
Print
Email
