Allen Lund Discusses Emergent Issues in Distribution and Transportation


Wed. August 15th, 2012 - by Jordan Okumura-Wright

<p> Allen Lund Company is addressing emerging issues in distribution and transportation, with one imparticular- Understanding Specialized Truck Pricing. According to Doug Mesecher, Assistant Manager, Louisville Office, There are many different aspects to consider in regard to specialized truckloads. Mr. Mesecher continues on in a recent editorial piece, to help the industry understand the different ways in which we can understand specialized truck pricing.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Mr. Mesecher, notes, These loads tend to be much more complex operationally than a standard dry van load. The question of how these complexities impact pricing, is a relevant one in the industry. Transportation professionals are aware that specialized loads cost more to move but are uncertain as to how these costs are calculated. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>According to Mr. Mesecher:</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>For instance, when comparing the cost of a dry van load to an over-width flatbed truckload, there are several factors to take into consideration. A recent carrier availability search for the Louisville area utilizing Transcore 3sixty Freight Match to compare the availability of dry vans versus flatbeds revealed some interesting results. Dry vans had a load to truck ratio of 2.6. This equates to 532 loads posted in the Louisville area with only 201 dry vans posted. The load to truck ratio for flatbeds was 11. There were 483 flatbed loads available and only 44 flatbeds posted. It is evident that the flatbeds had more options for where they wanted to go. Capacity imbalances such as this can lead to a higher premium for the carrier due to the limited availability of flatbeds. However, this data is only a reflection of the regular flatbed trucks available. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Oversize flatbed loads can be much more challenging to cover. Personal experience indicates that there are far less carriers willing to haul oversize freight, especially anything over 102". The demands for oversize loads require the carrier to follow specific routes in each state. This can add numerous miles compared to a regular flatbed load. Oversize loads also have to follow different rules of operation than a standard flatbed load. Usually, they are only allowed to travel during daylight hours. This increases the amount of time it takes an oversize load to travel the same distance as a standard flatbed load. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Carriers hauling oversize loads incur more liability since most of the time part of the load is hanging over each side of the trailer. Many flatbed carriers will not haul oversize loads just because of this liability. These loads tend to be scrutinized more at weigh stations. With the implementation of CSA2010, most carriers are extremely cautious when accepting oversize loads. Carriers are concerned with protecting their safety rating, this can prevent the carrier from accepting challenging loads. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>An over-width load requires separate permits for each state the truck will travel through. For example, the cost of permits for a load from Kentucky to Texas is approximately $278. This is an additional expense that a dry van or even standard flatbed does not incur. Another additional cost can be truck escorts. While traveling on a two-lane highway, if a load is over 10'6" in width in the state of Kentucky but less than 12', the truck is required by law to have an escort in the front. Loads exceeding 12' must have a front and rear escort. On four-lane highways movements of 12' or more require a tail escort vehicle and movements of 14' or more require front and rear escorts. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Additional charges can be assessed if tarps are required for a load. The cost for tarps can vary considerably. There are several types of tarps: 4', 6', or 8' drop tarps, steel tarps and smoke tarps. The cost to tarp a load can vary as low as $50 to a couple of hundred dollars, depending on the requirements. As you can see, there are a lot of variables that affect the cost of a specialized load versus a standard dry van load.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.allenlund.com" target="_new"> Allen Lund </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">