COVID-19 effects on LTL transportation
The effects of COVID-19 have been felt across the board in transportation and the changes it brings to customers and shippers is having a widespread impact. There have been some recent and significant changes within the domestic LTL sector, a few we cover below.
Suspending reimbursement payments for failed guaranteed or time critical shipments
Several LTL carriers have suspended reimbursement if a shipment fails to deliver by the due date on guaranteed, time critical or priority type shipments. These carriers will still make every attempt to deliver by the guaranteed date and they will still get priority over non-guaranteed and non-essential goods type shipments. During this time, please be aware this is a carrier by carrier basis, some still honor guaranteed reimbursement failures. This should return to normal after we emerge successful from this virus, however, there is no ETA on when this will occur. Please reach out to your Agforce contact if you have a time-sensitive shipment and would like a solution for how we can get this delivered on the due date.
No-touch proof of delivery receipts
Many LTL carriers have implemented a “no-touch” proof of delivery (POD) or deliver receipt (DR) due to COVID-19. If a driver or receiver is uncomfortable with touching someone’s paperwork or device, LTL carriers are having their drivers sign the POD for the receiver with the receiver’s permission. They then transmit this completed delivery to their dispatchers with the time, date and name of the receiver. With these new implementations, we encourage shippers and receivers to take pictures of the shipment at pickup and delivery to help support a claim if required for damage. Ideally, we would like the receiver to notate with the driver “damage” upon delivery but know that is not always the case as some receivers may not be checking for damage ASAP with the driver onsite with the pandemic.
Undeliverable freight procedures due to business being closed or limited hours due to COVID-19
Our partners are seeing a huge increase in undeliverable freight with receivers being closed or limited hours. This increase is causing multiple issues such as storage, delivery delays, backlogging their supply chains and altering the way their operations can process an increased volume. Prior to this, carriers would call the billing party if a shipment were not able to be delivered and request a disposition. Normally we were given a couple of days to provide a resolution before storage charges were applied and flexibility in working with the customer. Currently, procedures are adjusting to returning the freight back to the shipper automatically with no prior authorization, and a limited timeframe for the customer to resolve the issue or storage charges can occur. In some cases, these charges are automatically applied to the customers’ invoice resulting in large adjustments from the initial quote. Driven largely from nationally based LTL carries, we expect the regional carrier to follow suit. It is highly crucial, now more than ever, for customers to communicate closures or limited hours with carriers to prevent this from occurring.
Delays in invoicing and back office functionality
Back-office functionality has largely been an offshore product for many LTL carriers with the pandemic causing a worldwide shutdown. As they work through the process of it, we have seen a rippled effect of delays in documents and invoices. Communication is paramount, if you need anything from us please let us know, we are doing our best to stay ahead of this.
One positive COVID-19 case can shut down an entire terminal
Increased sanitation measures have been put in place at terminals. If someone tests positive, they will shut down the terminal to sanitize everything. This can cause missed pickups, deliveries, and delays in transit. There is not a great way to predict this, so wherever possible please allow flexibility. We will do our best to communicate any closures that may impact your shipments.
This is an unprecedented time and the need to adapt is paramount. At Agforce, we embrace change and our agility allows us to thrive in any environment. Please reach out to your Agforce partner if you would like to discuss anything around these events or if we can provide more information. We will get through this together and be stronger from it.
“The only constant is change” – Heraclitus
-Ryan Chancey, LTL Carrier Relations Manager