Month: March 2013

A logistics worker handles a company’s distribution. That usually entails working in a warehouse, packaging, shipping and receiving items. Logistics workers load and unload merchandise from delivery vans, large trucks, airplanes and ships.

Function
Logistics workers may operate heavy machinery used to assist with the distribution process. Others load and unload materials by hand. Some workers are responsible for filling out invoices, and others have to make sure the warehouse is organized and maintained, on top of their regular duties.

Skills
Logistics workers must possess the endurance and strength needed to load and unload packages. They also must possess strong communication skills and work well alone or as members of a team.

Education
There are no set criteria to become a logistics worker. Those who handle strictly handle loading and unloading merchandise typically need no more than a high school diploma.

Prospects
According to the U.S. Bureau of Labor Statistics (BLS), jobs in the warehousing industry overall are expected to grow by 11 percent through 2018.

Earnings
Wages for logistics workers vary by responsibilities and title. According to the BLS, logistics workers earned a median hourly wage of anywhere from $11.94 to $24.33 in May 2008.

The class of freight of an item is determined by the classification system of the National Motor Freight Traffic Association (NMFTA). Before an item is transported, it is assigned a National Motor Freight Classification (NMFC) number according to its class. All items belong to one of 18 freight classes. The classes range from 500 to 50. Density, handling, stowability and liability are the four characteristics used to determine the freight class of your item.

Calculate the density of the item. The density is the space the item occupies in relation to its weight. The density is calculated by dividing the weight of the item in pounds by its volume in cubic feet. Your item’s volume in cubic feet is Length x Width x Height/1,728, where all dimensions are measured in inches. The density of your item = Weight/Volume, where Weight is measured in pounds and Volume is measured in cubic feet.

Contact a less-than-truckload (LTL) shipper. An LTL shipper or carrier is a trucking company that specializes in the transportation of commodities and various goods. They have employees who are familiar with the MNFC classification codes and can help to determine the code for your item.

Describe the item you intend to ship and provide its density. The carrier needs a detailed description of the item to determine its class. He needs to know the item’s stowability, which is how easy it is to load and store; it’s ease of handling, which is how difficult it is to move the item from one point to another; and its liability, which is how fragile or perishable it is.

Receive the classification from the LTL carrier. The carrier will look up the classification code for the item based on your description. In general, the denser your item, the less fragile or perishable it is and the easier it is to stow and handle, the lower the class and the less money it will cost to ship.

Logistics
A big part of starting a cargo freight company is figuring out logistics and costs for moving cargo. Analyze the cost of shipping cargo within the United States by land and water, and into foreign countries. This includes accounting for customs, freight duties and cost of transportation. The general costs for transportation include not just gas, but also vehicle maintenance, driver salaries, tolls and loading and unloading.

Strorage and Shipping
Some cargo freight companies will also factor in the storage of freight in a warehouse during delivery. When freight is shipped, sometimes it ships from one warehouse to another, then is picked up by another driver and shipped to a final destination. This is all part of the complicated logistics solution that you as a shipping company can provide. The companies that do it cheapest are the ones that succeed. Gather information not just on the cost of shipment, but also on warehouse storage. Find several options for storage that you can work into your plan.

Analyze Vehicle Costs
Vehicle costs are another large topic to investigate. Freight trucks must be dependable and fuel efficient. Diesel engines also require specialized mechanics. Hourly wages range from $20 to $50 or more. Find a servicing company that can provide maintenance, or look into hiring a full-time diesel mechanic for your cargo freight shipping company.

Buy a Warehouse or Rent
You will need a warehouse. Look into the prices on warehouses for sale through a commercial real estate broker. They have the best insights into the market and will also give you comparisons on renting a warehouse over buying. Compare the costs and balance your budget accordingly. If you do not want to take on additional assets, renting a warehouse is probably your best option.

Logistics according to the Council of Logistics Management is ” the process that deals with planning, implementing and controlling the efficient flow of goods, services and information from the point-of-origin to the point-of-consumption in order to meet the customers’ requirements.” The activities in logistics include transportation, warehousing, freight, delivery and customer support. Careers in logistics encompass all these activities. The objective of logistics is to improve the competitive advantage of a company. Corporations in recent years have invested heavily to improve their logistics, thus logistical careers are considered to be a part of a growing field.

Industries
Careers in logistics are available across a broad spectrum of industries. The most common employers include the airline industry, postal service, railways, ports, manufacturing companies and transportation companies.

Departments
Logistical jobs cover a wide range of departments within a company including: purchasing and material procurement, transportation, inventory management, warehousing, distribution, order processing, information systems and customer service.

Job Designations
The common job designations include pilots, drivers, supervisors, managers, distribution service managers, warehousing managers, inventory analysts, customer support workers, logisticians and postal workers.

Skills Needed
Skills needed vary according to the job description, but in common require an attention to detail, critical thinking, people skills and dependability. Basic high school diploma is the minimum required education for many of the jobs within logistics. College degree is required for many supervisory and technical level jobs. Experience is highly valued in the field, though many entry level opportunities are also available.

Additional Training
Improvements in logistics translate to greater efficiency for a company. Therefore companies are investing heavily in information technology to improve logistical efficiency. Training in new technology such as Enterprise Resource Management Systems and information technology are very helpful in pursuing logistical careers.

Apart from technology, companies are also paying more attention to improving customer satisfaction. Training in areas such as customer service and management are also a part of the job description in logistics.

A new electronic log rule could be proposed by September, said Federal Motor Carrier Safety Administration head Anne Ferro Thursday, March 14, at a congressional hearing, testifying to a House subcommittee.

The Highways and Transit Subcommittee — part of the House Committee on Transportation and Infrastructure — questioned Department of Transportation administration heads for two and a half hours wanting updates on progress made to rules and initiatives in the MAP-21 highway funding law from last summer.

The law requires that an electronic onboard recorder (electronic log) rule be made by the time the law expires in mid-2014.

Ferro was questioned by the subcommittee’s chairman Rep. Thomas Petri (R-Ore.) about potential issues of trying to squeeze every driver’s schedule into what he called a “one size fits all” rule, including scenarios of drivers being close to home or close to a destination and running out of hours.

Ferro said uniformity has been a big issue for FMCSA in making the rule, but that uniformity is a must to “ensure a level playing field.” She also said that most companies who switch find electronic logs to be “effective and profitable,” and that most drivers “over time” prefer EOBRs to paper logs.

She was also pressed by Rep. Peter DeFazio (D-Ore.) about the problems presented by detention time to hours of service rules and what the agency plans to do about it.

A study is underway, Ferro said, and the agency is expecting results by 2015.

looking for loads to haul? click here.

Federal rules pertaining to broker surety filings are in flux following congressional action last year that raised the minimum bond from $10,000 to $75,000. Still, basic procedures for filing are expected to remain.

The most high-profile filing incidents involve brokerages in trouble. If a broker is late on payment, odds are you’re not the only party who’s thinking about filing. If the broker closes and the broker’s bond limit doesn’t cover all debts, claims are paid on a “pro rata” basis – a percentage of what each carrier is owed.

In cases of broker business failure, getting your claim in early may not be particularly helpful. Federal Services Corp., which handles claims against financial institutions authorized as trust providers for brokers by the Federal Motor Carrier Safety Administration, notes it doesn’t file claims on a “first come, first served” basis. Rather, “while this practice may be followed by some of our competitors,” the company says, “it just encourages premature claim filings – sometimes even before loads are delivered!”

FSC notes that in 95 percent of claims it receives, “the broker pays the claimant after being informed a claim has been filed against their trust.” This avoids what it describes as a time-consuming process of mailing out documents for the carrier to complete and return, detailed below.

How to file
Determine when it’s time to file. After a broker has not paid within a reasonable or contracted time, you can file. Contracts often state 30, 60 or 90 days after delivery.
Find the broker’s surety provider.

• Visit li-public.fmcsa.dot.gov, FMCSA’s public licensing and insurance information site. Click through the disclaimer page and choose “Carrier Search” from the pull-down menu at top right.

• Supply as much information about the broker as you can by using the fields for DOT number, legal name, DBA name, base state and docket filing number. Brokers typically will have an “MC” prefix. “FF” refers to freight forwarders, which last year’s MAP-21 legislation for the first time also put under the requirement for a bond. Click search. (If you didn’t already know the broker’s MC number, save it for future reference.)

• When the broker you’re filing against comes up, click the “HTML” button to view licensing information on the web page or “Report” to download a pdf. On the pdf, the surety provider is listed under “Active/Pending Insurance” near the bottom. If you’re viewing the HTML report, click the “Active/Pending Insurance” hyperlink for the surety provider’s information.

Have this information ready to file: Broker’s legal name and MC number, as well as your own and relevant contact information; amount owed to you; load date (or oldest load date if more than one); commodity hauled.
Contact the surety provider.

• You may need to do further searching to find phone or website information for the provider. Several pulls of broker licensing reports showed neither phone or online points of contact for the listed surety provider. A simple Google search for company name and location, in most cases, will bring up the provider’s website and contact phone numbers.

• When you make contact, follow the provider’s claims process. Some companies, such as the Pacific Financial Association, will send you to a web page to fill out a preliminary form. Most sureties, however, will handle this step via a telephone call to their office. From there, documents will be mailed to you to fill out and return.

• If luck’s on your side, you’ll get paid by the broker after notification of the claim from the provider. If not, follow the provider’s claims process to the end and hope the bond or trust isn’t exhausted by similar claims if the broker’s business is failing. If some broker groups’ efforts to derail the new $75,000 minimum bond requirement are unsuccessful, at the least you’ll have a better chance of getting more money in such cases fairly soon. MAP-21 directed FMCSA to establish the new requirements of brokers, freight forwarders and surety providers by Oct. 1.