The city of New Orleans is seeking a private operator to purchase the NOPB Railroad in order to provide help with capital improvements and maintenance costs. According to New Orleans officials, it is hoped that the new agency will help improve commerce, as well as “maintain a competitive rate structure” to attract new customers. The NOPB connects with all six Class I railroads and provides switching and haulage service. An estimated one-third of all east-west rail traffic crosses the Huey P. Long Bridge segment of the railroad. The selection process is expected to be finalized by summer, and therefore all shippers who utilize this short line should be vigilant in getting ahead of any tariff or rules updates.
Increased Rates Likely
Many larger less-than-truckload (LTL) carriers emerged from 2016 with much lower profit margins than anticipated. However, things are looking up in 2017. As of February, LTL volume has grown to the point that carriers are confident that rates may be raised soon.
A recent joint survey by NASSTRAC, Journal of Commerce and Truckstop.com found that less than half of the 14,000 shippers and brokers surveyed anticipate only a slight rate increase. Some 14 percent of those surveyed expect rates to drop. Logistics Management forecasts a 2% increase in LTL pricing; however, several LTL carriers have published a 4.9% rate increase to encourage growth. As rates increase, AMTR’s ‘Smart’ Auditors can help you to ensure that you are not overpaying.
Freight that is incorrectly described on the bill of lading or misclassified on an inspection is the single largest driver of overcharges on less-than-truckload freight. Regardless, the issue can be mitigated with knowledge and preparation. When a shipper is preparing a bill of lading, they should research the product in question to ascertain its true characteristics. For example, this allows a centrifugal exhaust fan to be rated as NMFC 61900 “Fans, exhaust or ventilating” as opposed to the less specific NMFC 115030 “Centrifugal Fans” or, even less specific still, NMFC 133300 “Machinery, NOI”—both of which have higher classes due to density scales.
A thoroughly-researched classification on the bill of lading will prevent many overcharges. However, when a freight inspection results in a misclassification—and often an overcharge—there are avenues to dispute the inspection’s erroneous findings. According to NMFC 100-AP Item 360 Sec. 3, freight charges must be collected according to the proper description of the freight in question. This is to say that a carrier inspection is not the final word on the description of freight. By providing shipping documents identifying exactly what the items shipped were, as well as product documentation to explain why the proper description is different from the inspector’s description, a shipper may dispute the inspection findings. AMTR has experienced great success in achieving refunds for our clients by employing these methods and we would like to do the same for you!
An issue which AMTR has consistently observed to produce billing errors is the disparity between what a shipper thinks happens versus what actually occurs. This can manifest in many different situations. Sometimes carriers reroute shipments for the convenience or needs of their operations. Contract rates that take longer than anticipated to negotiate are not applied correctly, the amount billed does not reconcile with the amount paid to the carrier because their order and payment systems are not synced, or there may be other applicable documents such as emails, applied credits or manual adjustments made to bills.
It is not an uncommon practice for bills to be updated one or even numerous times and the incorrect or multiple bills to be paid. Many times the only way to see these trends is with a long-term historical perspective on all of a shipper’s freight bills and payments. This is exactly what AMTR Smart Auditing© does, by looking at the long term trends of both freight bills and their associated payments using our proprietary IT tools. Let AMTR get your company in sync with its refunds!
February is often regarded as the month of love and a perfect time to reflect on ways we can avoid losing love for our jobs. Factors such as long work hours, assignment overload and tight deadlines can lead to stress and burnout. According to a recent Harvard Business Review article titled “Why Some People Get Burned Out and Others Don’t,” employees can reign in job stress with three mental shifts. First, “don’t be the source of your own stress.” Try to avoid the need for perfectionism and constant high achievement. Next, “recognize your limitations.” If you do not have the knowledge or expertise to do something, be honest and ask for help. Finally, “reevaluate your perspective.” Recognize the situation for what it is—a threat to something you value or simply a problem to be solved.
Securing the “free” freight cost auditing services of AMTR is one way to reduce such stress and burnout. Today, as transportation-specific knowledge in many companies wanes, the pressure on those employees left to handle the spectrum of freight-related tasks is increasing. In reflecting on the mental shifts recommended above, a choice to use AMTR Smart Auditing© to augment company operations acknowledges that transportation payment problems can be more efficiently and effectively handled by knowledgeable experts who focus on such issues 100% of the time.
When it comes to freight cost auditing, AMTR can help you to love your job more by handling the tasks you love less, while saving you money at the same time. What’s not to love about that?
