Author Archives: Brad Miller

How A 3PL Can Improve Your Supply Chain

Between trying to schedule time-sensitive deliveries and keep freight costs down, coordinating transportation for shipments can be challenging. To help navigate shipping difficulties and keep supply chains running smoothly, many businesses hire third-party logistics (3PL) companies.

3PLs coordinate and handle logistics for a business. Businesses go to 3PLs with their shipping needs and transportation method, which could be truck, rail or ship, depending on what the 3PL offers. Whether you are looking to streamline your supply chain or receive help with the shipping process, partnering with a 3PL offers many advantages, including the following:

Lower freight costs

Controlling freight costs is important to many businesses. The strong relationships 3PLs have with a network of carriers allow 3PLs to negotiate freight rates and ensure their customers receive fair, competitive rates.

More efficient use of time

Finding carriers can be time-consuming and take employees away from other important tasks. Working with a 3PL who takes care of finding a carrier and coordinating shipments allows employees to focus their efforts on other aspects of their business.

Streamlined supply chain

Businesses strive to make their supply chain more efficient, but it can be difficult to know where improvements can be made. 3PLs understand the unique shipping needs of each business they partner with, allowing them to make supply chain recommendations tailored to individual businesses.

Experienced teams

Some shipments, such as less-than-truckload (LTL) and just-in-time (JIT), can be particularly difficult to coordinate. Employees at 3PLs have years of experience in logistics and can coordinate time-sensitive shipments to ensure they arrive on-time at their destination.

When looking to partner with a 3PL, it is important to make sure the company is experienced and trustworthy. Red Kite Freight Solutions has a strong network of reliable carriers and a team with decades of combined experience. Red Kite founder Lacey Jackson has experience working on the shipper side, giving her insight into the challenges logistics teams face.

Unlike most 3PLs, Red Kite will not commit to a load we do not already have a truck for, reducing the chance for a service disruption in your shipment. Customer service is our top priority, and we will advocate to ensure you are getting the best rate.

Request a quote or contact Red Kite today to learn more about our transportation solutions.

Trucking Industry Insights: October 2019

The trucking industry saw mixed conditions over the past couple of months. Our main takeaway, based on economic news and indicators, points towards trucking conditions remaining stagnant over the next few months. Here are the top headlines we are currently watching.

Diesel Fuel Prices Increase

The national average for a gallon of on-highway diesel fuel jumped 9.4 cents the week of September 23rd, reaching $3.081 a gallon. Diesel fuel prices jumped due to recent attacks on a Saudi Arabian oil field that slowed the country’s oil production. The price increase is the largest single week change in average fuel prices since September 2017.

The Midwest saw the largest price spike, with an 11-cent increase, followed by a 9.7 cent-increase in the Lower Atlantic and Gulf Coast.

Source: Commercial Carrier Journal

August Truck Tonnage Rose 4.1%

Truck tonnage in August rose 4.1% compared to tonnage a year earlier, according to the American Trucking Association’s For-Hire Truck Tonnage Index. Seasonally adjusted tonnage also increased 4.3% year-to-date compared with the first eight months in 2018. However, truck tonnage fell 3.2% in August after an increase of 6.2% in July.

According to ATA Chief Economist, the rise in tonnage data is due to an increase in contract freight, as spot market freight experienced decreases this year.

Source: Transport Topics

FTR Trucking Conditions Index Slightly Improves in July

The FTR Trucking Conditions Index (TCI) slightly improved in July, with a reading of -0.28. According to FTR, a TCI reading above zero represents an adequate trucking environment – a reading above 10 indicates volumes, prices and margin are in good range for carriers.

July’s reading showed an improvement in trucking conditions compared to June’s reading of -0.82 and May’s reading of -2.3.

FTR said lower diesel prices improved trucking conditions in July but expects the outlook for conditions over the next year to range from neutral to negative.

Source: Logistics Management