Cold chain logistics management requires seamless coordination to ensure that temperature-sensitive goods receive consistent and appropriate refrigeration during transport and storage. It’s critical for companies with refrigerated or frozen products to partner with a reliable cold chain third-party logistics (3PL) service provider for efficient and detail-oriented supply chain management. Read on to determine if 3PL is right for your business, what fixed and variable costs you should expect to encounter, and additional budgeting information to assist you when selecting a service provider for cold chain logistics.
What Is 3PL Cold Chain Logistics?
Cold chain logistics involves transporting goods like meat, produce, dairy products, medicines, chemicals, and more that require constant temperature control, and managing their transportation and storage through the supply chain. Handling all the routing, docking, warehousing, and additional cold chain details effectively without delays and resulting product loss can be overwhelming on your own. Working with an experienced 3PL partner can help you ensure that your products stay at their necessary temperature from initial loading through final delivery to maintain product quality.
Cold Chain Logistics Expenses
When using cold chain logistics companies, there are two primary categories of expenses for which you should budget: fixed and variable costs.
Fixed Costs
Also known as capital or standing costs, fixed costs remain the same in the short term, typically for a period of a year, regardless of the output volume, quantity, or transport distance. For example, every cold chain logistics provider will have fixed costs for:
Employee wages
Equipment costs
Truck/vehicle payments
Warehousing fees
Insurance fees
Variable Costs
Alternatively, variable costs will change depending on volume, quantity, and distance because these costs have to do with the amount of resources the provider must use to make the shipment. Also referred to as recurrent, running, or operational costs, variable costs in cold chain logistics include:
Supplies necessary for production
Piece rate labor
Billable employee wages
Fuel for trucks (pricing varies by state and distance)
Credit card company fees
Interplay of Fixed and Variable Costs
While they’re separate concepts and the same logistical factors may affect them differently, fixed and variable costs are each still dependent upon the other. For example, a logistics company can pay a fixed cost for their use of a truck, but the variable cost of fuel consumption will increase or decrease depending on the weight and size of the vehicle, as well as the travel distance and number of stops. You might also have paid for a certain number of trucks at a fixed cost, but end up paying for an additional truck if the original fleet is insufficient for covering a delivery.
Additional Costs and Financial Considerations
Beyond typical fixed and variable costs, there are several additional expenses, or accessorial charges, to consider. To avoid paying higher fees than expected, be sure not to overlook the following potential costs when considering a cold chain logistics company:
Reconsignment cost: Per-mile fee decided at the time of the initial quote
Lumper fees: Vary based on third-party unloading provider
Excess cargo insurance fees: Vary based on freight value, travel distance, etc.
Over-dimensional (OD) freight fees: Vary based on cargo dimensions, necessary permits, final destination, and more
Specialty equipment expenses: Dependent upon what pallet jacks, edge protectors, straps, wraps, and other equipment you’ll need
Truck order not used (TONU) fees: Ranging $200 to $600 (potentially more for specialized trailers)
Stop charges: Per-stop delivery rate of $50 to $100
Layover fees: Flat fee ranging from $150 to $750 based on equipment and length of delay
Driver detention compensation: Also for delays, with a per-hour cost of $50 to $150
Driver assistance fees: $100 to $250 when drivers help unload
Tarping charges: $100 to $150 to cover goods on open trailers
Tanker endorsement fees: Approximately $250 for transporting liquids
Hazmat fees: $150 to $200 for transporting hazardous materials
It’s important to remember that you can minimize accessorial cold chain supply logistics fees by planning ahead and working with the right logistics partner.
Mulder Brothers’ Cold Chain Logistics Services
Cold chain logistics is a complex process of reliably and efficiently managing product storage and transportation to ensure optimal temperatures and quality. When choosing a 3PL partner for your business, consider your needs, your budget, and the fixed, variable, and potential additional costs involved, as well as the partner’s capabilities and experience.
Mulder Brothers Brokerage has 15 years of experience offering nationwide cold chain coverage and best-in-class, 24/7 support to both customers and carriers. We specialize in frozen less-than-truckload (LTL) shipments, warehousing, cross-docking, and redelivery services to support your supply chain.
For more information on our capabilities and pricing, contact us today.
Third-party logistics (3PL) service providers can offer shipping, storage, and supply chain logistics support to streamline your operations, reach your goals, and save on costs. Learn about what 3PL entails, the benefits that outsourcing logistics management offers your business, and how to select the right 3PL partner for you.
What Is 3PL?
3PL companies manage the logistics of your supply chain so that you don’t have to. Their services typically include freight packing, shipment transportation, and storage, as well as options like brokering, consolidation, supply chain logistics, and more. 3PL companies have varying business models, though most are not asset-based, meaning that they have a network of vendor and carrier partnerships to arrange these services and necessary 3PL warehouses, distribution centers, equipment, and labor on your behalf.
When working with a 3PL service provider, you can expect costs related to:
Inventory receipt
Picking and packing
Storage and warehousing
Outbound shipping
Pricing will depend on individual factors like order volume, transportation distance, and any required specialty services like refrigeration in shipment or storage.
Benefits of 3PL
The external support of 3PL service providers offers your business and customers numerous advantages while keeping a competitive edge. Using 3PL providers gives you:
Access to experience and resources. Among the greatest of 3PL benefits is the ability to capitalize on the experience and resources of the provider and their network. They’re already familiar with the various documentation and regulatory compliances associated with transport, imports and exports, and more. Also, they already have the staff, equipment, vehicles, and warehousing resources to take on your job.
Budgetary savings. In addition to saving on your initial investment given the 3PL provider’s existing resources, having vendor partnerships helps in negotiating optimal pricing. Also, given the high volume these companies handle, they’re often able to pass those volume discounts on to you.
Operational flexibility to scale your business and expand your market. 3PL service companies offer you the flexibility to scale operations based on your current and future business needs and order volumes. Also, those that cover a wide service area already have facilities and warehouses ready should you want to expand into new markets, and you save time on learning a market’s nuances.
Ability to concentrate on your company’s core competencies. Outsourcing supply chain logistics to an experienced third party allows you to focus on the core of your business and what you do best, letting a 3PL provider manage shipping, storage, and logistical concerns.
Enhanced customer service and satisfaction. Partnering with a 3PL company leads to improved services and order turn times, which, in turn, have customers associating your brand name with reliability.
How to Select the Right 3PL Provider
Your 3PL partner will have a tremendous impact on your company’s supply chain, costs, and customer service. If you’re asking yourself how to choose a 3PL provider, important factors to consider include:
Provider capabilities. The 3PL provider should offer the services you need now, and potentially in the future. Particularly consider any specialty services, like refrigerated or frozen storage and transportation, less-than-truckload (LTL) consolidation, truck repair, etc. The logistics company should also be aware of and adhere to all industry safety regulations.
Pricing. In addition to having the services you need, make sure the 3PL company fits within your budget.
Reputation and experience. There are numerous ways to determine if a company is reputable. In addition to years of service, certifications, company mission statements, and online reviews, look for assurance metrics like on-time, in-full (OTIF) order fulfillment rates.
Service availability. It’s important that the 3PL company provides storage and transportation within your needed service area and timeframe.
Order tracking. Visibility and accountability are important, so the provider should offer the ability to track shipments during all order fulfillment stages.
Responsiveness and customer support. Customer service is at the core of a good business. Choose a provider who can identify issues before they happen for optimal logistics management and provide sufficient support to handle problems when they arise.
Scalability. One of the benefits of partnering with a reputable 3PL service is that they have the staff, equipment, and expertise to quickly adjust your logistical plan and manage any changes in volume or market. Partner with a 3PL provider that not only meets your current needs, but offers any services you may require as your business grows.
Technological advancements and security. Your provider should have the technology in place to process, streamline, and track an order from its placement to final delivery. Also, they should be able to adequately protect your company’s financial information.
Customized solutions. A one-size-fits-all solution isn’t the best fit for any business. Your fulfillment partner should be able to provide a supply chain plan tailored to your unique product and needs.
Why Mulder Brothers Is the Right Choice
Mulder Brothers Brokerage specializes in refrigerated and frozen transportation and warehousing, cross-docking, redelivery, and cold chain 3PL. Our extensive trucking background and success in multi-vendor and LTL consolidation services set us apart from the competition, as does our participation in the Walmart Consolidation Pool Program as an approved Walmart consolidation partner. We maintain strategic relationships with a network of trusted carriers and vendors that, along with our consolidation facility, allow us to serve clients nationwide. Contact us today to learn more.
Managing supply chain logistics and critical shipments can be an enormous challenge. You may work with high-volume orders or complex shipments that necessitate multiple modes of transportation. What if you could partner with experienced third-party logistics (3PL) experts who will work through all logistical considerations for you to create fully customized transportation solutions?
Mulder Brothers Brokerage is a transportation brokerage services company with a long history of accommodating even the most unique and challenging requests. We make deliveries to diverse organizations that many companies do not, including businesses, warehouses, schools, hospitals, prisons, food banks, and trade shows. No matter your needs, Mulder Brothers can provide customized logistics solutions, partnering with you to develop a shipping plan that meets your individual timeline and budget.
How Customized Logistics Solutions Can Benefit Your Business
Whether you are a small business or a large enterprise, customized logistics solutions can simplify transportation operations and help you stay ahead of the competition.
Common Transportation Challenges
Transportation companies encounter numerous challenges while moving, storing, and delivering products. Sometimes the concern is a facility’s location or space limitations, as large trucks have difficulty navigating tight spaces and require manual unloading within a building. A facility’s operational procedures may also result in challenges, such as prison security policies that require background checks on personnel before they can make deliveries.
If your product is part of the cold chain and requires strict temperature control, you must adhere to FDA safety regulations and maintain constant temperatures both in the truck and in storage. For perishable items, your timeline is of particular importance as well to prevent product loss.
Capabilities of Our Customized Transportation Services
At Mulder Brothers, we understand that shipping and delivery logistics can be a complex and challenging undertaking. We aim to streamline the process by offering customized trucking and transportation services to best suit your needs. We have access to a fleet of temperature-controlled trucks through our partner company, Art Mulder & Sons Trucking (AMST), for trusted, frozen and refrigerated less-than-truckload (LTL) shipping, redelivery, warehousing, and cross-docking.
We also work with an extensive carrier network of final-mile delivery companies so that you benefit from flexible scheduling and nationwide routes. Our team can accommodate a broad spectrum of needs and delivery types, from fitting into tight locations that are inaccessible to full-sized trucks to hand deliveries and unloading, even directly into your freezer.
Benefits to Your Business
Using a brokerage company for customized logistics solutions offers you many advantages, including:
Flexible scheduling and scalable operations that fit your specific needs. Traditional shipping often requires you to accept the established routes and schedules of the transportation company. This can be a problem if your needs change or you begin shipping to a new location. With a customized solution, you can work with a logistics provider to create a more efficient delivery plan.
Ability to transport varying cargo types. This flexibility extends to cargo types, as well. Customized transportation solutions are capable of handling a variety of cargo types, regardless of their shape, size, weight, temperature requirements, etc. This versatility helps to streamline your supply chain and reduce unexpected delays.
Affordability. Customized transportation services can also be budget-friendly. Such companies will help you make the most of your budget by determining the optimal delivery and routing solutions for your business.
Happier customers. Timely product shipping and deliveries, as well as goods that arrive in the expected condition, lead to high customer satisfaction. This can result in repeat business and positive word-of-mouth recommendations and online reviews for your company.
Specialized Transportation Brokerage Services From Mulder Brothers
Managing the logistics of the entire transportation process on your own can be quite daunting, requiring excessive amounts of time and constant, tedious tracking. Alternatively, choosing a large national transportation brokerage firm may leave you feeling like a number instead of a partner. As a smaller, family-owned firm, we at Mulder Brothers know our customers by name. Backed by AMST as well as local carrier partners, we have the flexibility to tailor routes and schedules to your needs, time frame, and budget.
We’ve been developing personalized transportation solutions since 2008 and thoroughly understand the complexities of the business. We offer both asset- and non-asset-based transportation services that include frozen and refrigerated transportation and warehousing, as well as cold chain logistics and consolidated shipments for the Walmart Consolidation Pool Program. With a Service First™ mentality, we work hard to find the right solution for your business, and our team is available 24 hours a day to customers and carriers alike to offer optimal support.
Contact us today for more information on the Mulder Brothers difference and our customized transportation solutions.
Many factors have a negative effect on supply chains. From long wait times to truck maintenance issues, supply chain stressors pose a challenge for many businesses. To alleviate these concerns, Mulder Brothers Brokerage offers a comprehensive array of convenient services and logistics management. Read on to learn about the most common supply chain stressors that companies experience and how Mulder Brothers can help.
Supply Chain Issues
Any business that involves the transportation of goods can experience delays and challenges associated with its supply chain. These issues can have a ripple effect, causing long-term difficulties, persistent unpredictability, and unhappy customers.
Long Loading and Unloading Wait Times
Many truck drivers are compensated based on the mileage they drive. This means that they aren’t paid for the time they spend waiting at the cargo dock for truck loading and unloading. Cargo processing times frequently add up to several hours each day, particularly when inefficient warehousing practices occur. So not only can loading and unloading add delays to shipments, they significantly cut into a driver’s wages.
Treatment of Truckers
The supply chain challenges in recent years have called attention to the growing shortage — and high importance — of truck drivers, all while online purchases and the resulting transportation needs are increasing. The industry has a very high turnover rate, which isn’t surprising as many truckers report feeling dehumanized in their role, as though they are only a number. They also report that receivers and shippers treat them poorly, going so far as to deny them access to their restrooms. Such treatment hardly supports job satisfaction, employee retention, and a reliable delivery network.
Truck Maintenance
Even if a trucker has already paid off their vehicle, that still leaves the cost of tires and routine or unexpected maintenance. Truckers often pay such maintenance fees for their trucks themselves. These fees are second only to fuel costs in their overall expenses and make up as much as 10% of their out-of-pocket expenditures. Maintenance expenses can cost over $100 per hour.
Whether it’s a planned inspection or unscheduled repairs, truckers will also pay in the form of lost wages resulting from the necessary downtime. Onsite repair shops are a significant benefit for alleviating some of the burdens of truck maintenance and reducing downtime. This, of course, is beneficial not just for the truckers themselves, but for your supply chain.
How Mulder Brothers Brokerage Can Help
At Mulder Brothers, we eliminate many of the major supply chain stressors through our convenient services.
Warehouse Services
Mulder Brothers partners with Cold-Link Logistics, a company providing refrigerated warehouse solutions for our network in a number of locations throughout the U.S., including:
Orlando, Florida
Fort Wayne, Indiana
Sioux City, Iowa
Holland, Michigan
Providence, Rhode Island
This gives us access to a range of services, such as freezer, cooler, and dry storage, as well as office space.
Interprofessional Collaboration With Truckers
We at Mulder Brothers live and breathe the trucking industry, and we believe in treating every one of our carrier partners with respect. Backed by an entire fleet from Art Mulder & Sons Trucking (AMST), our sister company, we understand the process of hiring and retaining good drivers. Many of our staff are former drivers themselves, so we have a personal background in the transportation and trucking industry that only experience can provide. This gives us first-hand knowledge of the stressors involved in the trucking profession, and so we are committed to alleviating stress in every way possible.
To that end, we have a collaborative management and scheduling style, with a focus on goal-oriented teamwork. Our core values include:
Hard work. Our team is committed to doing whatever is necessary to complete each job.
Loyalty. We remain dedicated and faithful to our customer, trucker, and supplier relationships.
Honesty. Even when no one’s looking, you can count on us to do what’s right for optimal transparency and accountability.
Care. We believe in placing the needs of our coworkers, customers, and suppliers before our own.
Reliability. With Mulder Brothers, you have the peace of mind that comes with a company consistently honoring its promises.
Stewardship. Our company nurtures and manages resources for the glory of God.
On-site Maintenance Shop
Through our partnership with Mulder Fleet Services, we’re able to offer onsite equipment inspections and same-day truck and trailer service, as well as parking space rentals and equipment washing. Our maintenance programs include service reminder notifications and record-keeping for easy service and warranty tracking.
Pay Structure and Scheduling for Drivers and Carriers
We built our pay structure to address the greatest compensation stressors truckers face in response to e-log regulations. Our fleet drivers are nearly all paid as salaried workers. Art Mulder & Sons Trucking features primarily salaried compensation, while Mulder Brothers Brokerage typically pays out a daily rate. Also, we set weekly trucking schedules for our contracted drivers backed by 24/7 support.
Working With Mulder Brothers
Supply chain disruptions pose a threat to all types of businesses. At Mulder Brothers, we offer nationwide transportation logistics services to alleviate potential supply chain stressors and ensure enhanced reliability for our customers and partners. Whether you need temperature-controlled trucking, convenient warehouse storage, or you’re looking to collaborate with trusted truckers, we have the solution for you. Contact us today to learn more.
Transporting cold storage shipments is a complex and highly regulated process that requires careful logistical coordination, tight schedule management, and strict temperature control during shipment. Cost optimization and effective risk management are critical for minimizing unnecessary expenses, product losses, and delays as these sensitive shipments move through the supply chain. In this blog, we highlight the major expenses associated with cold chain transportation and discuss effective methods for managing logistical challenges and keeping costs low.
Understanding the Cost
To preserve their safety and integrity, temperature-sensitive shipments must be stored within specific temperature ranges during the transportation process. The logistics required to meet relevant industry regulations, manage risks, and ensure on-time delivery can make cold chain transportation a costly process. Among these costs, the largest expenses include:
Inventory carrying
Transportation
Fuel
Storage
Labor
Administrative
Cold chain logistics companies also face cost challenges with port delays and associated increases in transportation fees. When international shipments are part of the cold chain, compliance checks, documentation processing, and subsequent delivery delays related to international trade regulations are part of the necessary logistical planning. Temperature-controlled warehousing fees are another costly consideration.
Two of the most important factors for minimizing these costs are efficient performance and on-time delivery, both of which are key for ensuring a safe product.
Cost Management
Given the costly nature of cold chain transportation, it is important to implement effective cost and risk reduction strategies throughout the supply chain. Examples include:
Consolidating truckloads. While full truckloads (FTLs) sometimes give the shipper more control over shipping conditions and schedules, less-than-truckload (LTL) shipments are becoming increasingly popular for cold chain transportation. LTL shipping involves sharing container space with several shippers by combining multiple smaller loads with a common destination. When shipping schedules and temperature requirements are aligned among shippers, LTLs offer an efficient and economical transportation option.
Reducing handovers. The more handover points involved in cold chain transportation, the greater the risk of human error and miscommunication. Simplifying the transportation process is essential for reducing many of the inherent risks involved with cold chain shipping. In addition, modern Internet of Things (IoT) and cloud technologies can be useful in tracking the variables that influence product quality. Access to this information allows for more accurate decision-making, improved risk management, and cost reductions.
Real-time temperature monitoring. Real-time monitoring technologies provide cold chain logistics companies with continuously updated data on temperature, shipment location, dwell time, and other relevant variables. This gives the shipper the opportunity to respond instantly to any problems that arise during the shipping process and prevent potentially damaging temperature excursions, reduce product spoilage and operational waste, and lower safety stock requirements.
Minimizing the cost of crisis management. When it comes to shipping temperature-controlled goods, real-time supply chain visibility in combination with rapid intervention strategies are essential for preserving product quality and ensuring regulation compliance among all supply chain partners. In addition to reducing product waste, an effective monitoring and intervention program can positively impact a company’s insurance premiums and related copays.
How Mulder Brothers Brokerage Can Help
Mulder Brothers Brokerage is a transport logistics company offering nationwide distribution of frozen and cooler less-than-truckload (LTL) shipments with pickups in the Midwest region. Equipped with a large fleet of trucks through Art Mulder & Sons Trucking, we provide weekly dedicated LTL services for customers and set weekly truck schedules for contracted carriers in our service network. Benefits of partnering with us include:
24/7 customer and carrier support
Access to a highly trained and experienced logistics team
Comprehensive assistance with warehousing, cross-docking, redelivery, and third-party logistics (3PL)
Contact Mulder Brothers Brokerage for Your Temperature-Controlled Transportation Needs
At Mulder Brothers Brokerage, we understand the importance of a reliable and efficient transportation strategy when it comes to preserving the quality and safety of cold chain products. Our extensive trucking background combined with years of cold chain logistics experience make us well-qualified to handle and transport a range of time- and temperature-sensitive shipments.
To learn more about our cold chain transportation capabilities in the LTL industry, pleasecontact us today.
Though a few years have passed since the beginning of the pandemic, supply chain disruptions continue to plague markets worldwide. Supply chain managers must find ways to minimize the operational impact of shortages and delays by proactively looking ahead and building more agility into their business’ supply chain.
Resilient supply chains are ones that exhibit an ample capacity for recovery in the face of instability. They can manage and adapt when a supply chain disruption occurs, despite its scale. Learn more about how to achieve supply chain resilience and the benefits of building resilience into your logistics processes.
How Supply Chain Resilience Works
Supply chains must be capable of rapid adjustments in response to a diverse range of production disruptions. Supply chain disruption examples include sudden surges or drops in demand, decreased productivity, raw material shortages, and more. Developing a contingency plan is a crucial aspect of navigating such events. This allows you to minimize or avoid the negative impacts of supply chain issues, giving you the operational flexibility you need to continue business.
To optimize resiliency in your supply chain, you should:
Proactively establish a contingency plan. Proper planning facilitates a thorough understanding of all supply and demand components in your supply chain and supports continuous production. A good plan can anticipate future disruptions that might arise to mitigate their effect on your operations.
Gather and analyze real-time data. Utilizing a digital supply chain management system can help your team curate and interpret disparate data sets to provide real-time insight into workflows and identify trends and opportunities for improvement. Supply chain managers are able to forecast and respond quickly to this information and minimize unexpected supply chain disruptions.
Diversify your network of suppliers, manufacturers, and distributors. Contracting with multiple service providers helps you better navigate unexpected disruptions, giving your company the agility to turn to another supplier if your usual one experiences a product shortage or service interruptions. Advanced analytics, blockchain, and sensors are crucial technologies for supporting diversified supply chains. They allow you to easily supervise even complex supplier networks and partnerships, regardless of their location within the supply chain.
Incorporate buffers in inventory, just in case. In the past, companies tended to only have limited surplus inventory available to minimize costs. However, in recent years, advancements in digital logistics systems have helped users anticipate upcoming changes in demand or supply chain bottlenecks, allowing you to plan appropriately and create a cushion in your inventory and service capacity.
Benefits of Supply Chain Resilience
Choosing to invest in resilience measures provides many significant benefits in an increasingly competitive market. By focusing on diversification, implementing new supply chain technologies, and more, companies can enjoy benefits such as:
Minimal supply chain surprises. Visibility in all levels of the supply chain is the key to significantly reducing risk. Companies that modify processes based on traceable data and real-time logistical information are less vulnerable to supply chain breakdowns.
Productivity increases. Implementing resilient supply chain practices and technological advancements and applying collected data to your processes can lead to productivity boosts across your operation.
Operational efficiency. Improved flexibility within your supply chain frequently leads to a greater ability to invest in growth and innovation, all while reducing risk. Companies that invest in supply chain resilience expand their output capacities and enjoy shorter product development timelines.
Working with reputable partners can help your business avoid the shortfalls of supply chain disruptions and provide reliable service for your customers.
How Mulder Brothers Can Help
Mulder Brothers Brokerage specializes in third-party logistics (3PL) and frozen less-than-truckload (LTL) transport services on local, regional, and national levels. We are a relatively small firm, but we work with a trusted nationwide carrier network, which allows us to be both flexible and fast in supporting resiliency in your supply chain. For your convenience, we also offer cross-docking and redelivery capabilities.
Our services are backed by Art Mulder & Sons Trucking (AMST), providing us with a fleet of trucks for reliable service. Our on-site repair shop allows us to expedite any necessary repairs to eliminate transportation delays that would otherwise impact your business.
Improve Your Supply Chain Resilience With Mulder Brothers
These days, supply chains are facing a high potential for disruption, making flexible contingency planning more crucial than ever. Mulder Brothers offer a range of services designed to improve resiliency and reliability in your supply chain. With over 50 years of experience in the trucking industry and transportation logistics, we offer nationwide coverage coupled with superior support.
Contact us today to learn more about our Service First™ mentality and the supply chain solutions we offer.
With the rising cost of fuel, the freight industry has hit some definite bumps in the road. The surge in prices has been impossible to miss, with many roadside billboards announcing that gas now costs $4, $5, or even $6 a gallon or more in some areas of the country. For the vehicles that carry out refrigerated and frozen transportation services, both the trucks and their temperature-controlled trailers run on pricey diesel fuel, and so any increase in fuel expenditures especially impacts companies that rely on this type of shipping. Learn more about the implications of rising fuel costs for the refrigerated and frozen sector and how less-than-truckload (LTL) shipments can help provide a solution to the strain this puts on businesses in the transportation industry.
Implications of Rising Fuel Costs
The high prices that freight transportation companies must pay for fuel have far-reaching effects on other aspects of their business.
These can include changes to:
Transportation costs. When fuel prices increase, carriers must raise their prices to offset the extra expense. However, the rising fuel costs impact logistics for more than just the trucking companies. If it costs more for the carrier to convey goods, they must charge the shipper more to transport the merchandise. Then, since the shipper is paying more, the consumer will ultimately be making up for the additional costs by paying higher prices for goods.
Service area. A company’s service area typically consists of the region in which it can provide cost-effective shipments. However, every carrier has its own tolerance for changes in budget and cost. This means that, as fuel prices increase, sometimes a company’s service area will have to decrease proportionately. This can be especially tricky for temperature-controlled transportation companies as the refrigeration unit is powered by diesel.
Service frequency. In addition to service regions, another area in which companies can cut back in times of financial strain is consolidating offered routes. By reducing the frequency with which they offer a certain service or even the number of services provided, organizations can save money on the fuel costs they would otherwise incur. This is one of the advantages of leveraging LTL shipments as these services become more fuel-efficient and lower cost as smaller shipments are compounded into one truckload.
Effects on Frozen Transportation Industry
In the refrigerated and frozen transportation industry, temperature-controlled trailers and trucks operate on diesel fuel. The current high cost of diesel, therefore, hits the frozen transportation sector particularly hard. When refrigerated shipping costs increase, it forces transportation companies to raise their trucking prices to make up the difference and still turn a profit.
The implications discussed above turn into a reality that causes a shortage of trucks in certain areas of the country. This also leads to rising inflation as the trucking companies must pass on the increased costs until it is the consumer who bears the financial burden. Carriers have to prioritize profitability to stay in business, even if it means limiting their truck runs or sacrificing operational efficiency to do so. A reputable logistics company, however, can help you combat rising fuel costs by consolidating LTL shipments to maintain efficiency while still servicing all available trucking lanes.
How Mulder Brothers Brokerage Can Help
Consolidated, temperature-controlled shipments by Mulder Brothers Brokerage, a trusted LTL provider, allow you to combine your partial load with other shippers’ goods into one truck. LTL shipping can be a cost-efficient option for you as suppliers are able to share the shipping costs of a single truck, therefore you won’t need to pay for unused space. LTL is also fuel-efficient as this shipping method reduces the number of vehicles needed to transport goods.
At Mulder Brothers Brokerage, we love building long-term relationships with our partners. Our team supports both our customers and our carriers with reliable assistance 24 hours a day, 7 days a week. We strive to respond to every call with a working solution within 15 minutes to best serve you.
Partner With Mulder Brothers Brokerage
Rising fuel prices will continue to impact the transportation industry. As trucks in the refrigerated and frozen logistics sectors and their temperature-controlled trailers rely on high volumes of fuel to keep things moving throughout the supply chain, refrigerated freight rates have also increased significantly.
At Mulder Brothers Brokerage, we are here to help with our consolidated LTL refrigerated shipments as an economical way to transport frozen and refrigerated goods. We are your comprehensive resource for third-party logistics (3PL), temperature-controlled storage, transportation, and more. Contact us today to learn about our services and how working with Mulder Brothers Brokerage can lessen the impact of expensive fuel costs on your operation.
