Material Handling Experts


Information on the products and techniques to better store, handle, and move products in your facility.

Cisco-Eagle website now calculates shipping costs

January 17, 2009
Shipping by motor freight

Shipping by motor freight

It’s common for websites that ship products via parcel services to calculate shipping costs, making it easy for buyers to learn total costs before ordering. Very few sites can calculate LTL or motor freight shipments for heavy, bulky equipment like industrial shelving, wire security partitions, warehouse racks, or conveyors.

That changes recently, as can now provide instant shipping costs.

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Cost of delivery – look out!

March 13, 2008

Last night I while watching the news on TV, I saw a story on the cost of diesel fuel. Where I live I understand that diesel fuel runs about 60-80 cents more per gallon than what I pay now for unleaded. The news story showed a trucker filling his tank, and the total bill came in around $600!

The story cited the rising cost of oil and increasing demand for diesel in other countries as contributing factors to the rising prices. I am sure that the current value of our dollar has also affected the price at the pump.

Those increasing fuel prices affect the delivery cost of capital equipment. Most freight companies add a fuel surcharge to the cost of delivery. As the price of fuel fluctuates, they adjust fuel surcharges accordingly. One freight company we work with adjusts their surcharges weekly. Read the rest of this entry »

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Along with the cost of a gallon of gas, your transportation costs are rising (but fuel isn’t the only reason)

November 14, 2007

It’s more immediate of course, when the cost at the pump jumps, but rising fuel costs are a reality in your shipping operations whether you are pushing product to customers or bringing it into your facility. We’ve all seen the fuel surcharges and continually-rising freight rates.

According to Operations & Fulfillment, labor developments may have just as much impact over the next few years. Over the next 5 years, the latest UPS contract amounts to a $9 per hour labor cost increase, which will certainly make its way downstream to shipping charges. Developments in other companies such as FedEx and labor negotiations across the shipping and freight world mean that even if fuel prices stabilize, it’ll cost you more to ship and receive products.

Curt Barry’s article at Operations & Fulfillment recommends some of the steps you can take:

  1. Look at transportation in the context of the total supply chain efficiency. (see Curt’s article for tips).
  2. Institute vendor compliance policies, include routing guides for inbound carriers. Do not permit vendor-controlled freight.
  3. For high returns businesses, use return services.
  4. Join an inbound freight consortium with contracted carriers and negotiated best rates.
  5. Do your homework. You have to understand your volume and shipping characteristics, etc.
  6. Consider a freight consultant, which can reduce costs 15% to 25%.

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