Letters: Telemarketers, Infrastructure Op-Ed, Shoe Shippers

Telemarketers

I am writing in response to the letter with the opinion about telemarketers, which was published in the March 8 edition (click here for previous letter). As national sales manager for a third-party logistics provider, I would like the opportunity to counter some of the points the letter writer made and give a sales perspective to this issue.

Yes, the economy has had a negative effect on all carriers and brokers and, as a result, more parties than ever before are resorting to all sorts of methods to “get in the door” and “get a meeting.”

Why is this? The answer and the blame lie with the shippers, not the solicitors.

In the past three years, thousands of shippers nationwide have put their freight out to bid in an attempt to capture the lowest transportation dollar. The entire transportation network has been thrown up for grabs.

Customer loyalty no longer exists, regardless of how good a job you did before. A carrier is knocked off a lane for as little as a nickel per mile.

Many of us have to fight to stay employed. Tough times call for desperate measures, and getting a personal solicitation is the most common means of getting any

carrier/shipper relationship rolling.

The letter writer’s request that all e-mail and phone solicitations turn into just “snail mail” sounds nice, shippers, but be honest — you have no intention of ever reading the materials someone sends you. You wish, instead, not to be bothered and to avoid any direct interaction — a passive attitude that pervades our society these days.

The market is going to turn around. It may not be in the second or third quarter, but at some time. So keep in mind, Mr. Freight Shipper, that all that excess capacity you think is out there now is slowly eroding away and won’t be coming back. Many carriers have scrapped their equipment, not just simply parked it, so when business picks up, it will be a carriers’ market.

All those low-cost freight bids will be for naught; if you think you are busy now, wait until you spend days trying to get a load covered at your budgeted price.

Shippers who make the time now to listen to any and all solicitations will be better positioned in the future to get their freight covered — and at a reasonable cost. There are going to be a lot of long memories from carriers this time around, and if you thought those 5% to 6% rate increases back in 2004-2005 were high, you have no idea what you will be in for down the road.

[Name Withheld by Request]
Buffalo, N.Y.

Infrastructure Op-Ed

This letter is in response to the “Opinion” column by John Simourian: “It’s Infrastructure Decision Time” (3-15, p. 7; click here for previous Opinion piece).

While I generally agree with the writer’s call to accelerate domestic infrastructure investment, could we all agree to stop making comparisons between Chinese and American economic development?

At the risk of belaboring the obvious: America is a developed country; China is not.

China’s infrastructure needs are vast and unmet. America’s infrastructure is built out but in need of renovation. The scenarios are completely different, and comparisons between the two are meaningless and misleading.

Bill Broz
California Operations Manager
Construction Claims Services
ARCADIS PMCM
Los Angeles

Shoe Shippers

Your story says, “Shippers of shoes are protesting price increases of up to 50% for less-than-truckload shipments after an industry standards body changed the classification of

2 billion pairs of shoes, allowing carriers to raise rates (3-15, p. 2; click here for previous story).”

We have been here before with classification issues. If you look up the reclassification of candy canes you will see similar complaints and issues.

Density, stowability, handling and liability are the four keys to proper freight classification for LTL carriers who use the National Motor Freight Classification rating system. The carrier then applies a rate to the freight classification.

It would appear that whatever rate is applied by the carrier will have the greatest effect, especially if a “freight all kinds” rate is obtained.

The class applicable to item 28160 is increased to 150 from 100. Item 28220 is canceled with reference to item 28160. Note that item 28161 is canceled with no further application.

The Commodity Classification Standards Board is the body that develops and maintains the NMFC. Take the time to read what the Commodity Classification Standards Board did. “CCSB Docket 2009-3, Subject 2 — Footwear” is available through the National Motor Freight Traffic Association’s Web page: www.nmfta.org/Dockets/Docket%202009-3/2009_3.pdf.

Hank Mullen
President
The Visibility Group
Alpharetta, Ga.