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FREIGHT CARRIERS + BROKERS 101
STARTUP CPG’S FREIGHT DATABASE By Jessi Freitag, the Startup CPG Podcast host
FREIGHT IN CPG Port delays, truck driver shortages, rising freight costs, and the increasing complexity of getting even one pallet across the country (or even a state), can easily erode CPG brands’ precious time. UNFI needs your shipment early? Your raw materials are sitting on a dock somewhere? LTL, FTL, BOL, lumpers, reefers - it’s a whole separate world to navigate. And options do not make it easier. As of February 2021, the US Department of Transportation reported 996,894 for-hire carriers, 813,440 private carriers, and 83,235 other interstate motor carriers. How do you choose a partner who will have your back and make sure your shipments get to the destination on time and intact? Startup CPG has curated the first list of freight carriers and brokers just for CPG companies (created & crowdsourced by Startup CPG members).
BROKERS VS CARRIERS What’s the difference between freight brokers and carriers? Freight carriers own the actual trucks and physically transport your goods. Freight brokers act as intermediaries between brands and carriers for a small additional percentage. They have established relationships with carriers and look across multiple options to then contract your load. Ideally, a broker takes the pressure off a brand to follow up on all the pieces of a shipment and take care of any issues that arise. Wesley J Urquhart, CSO of SUNTECKtts, shares about some of the benefits that brokers can provide: ”Brokers are able to provide unique capacity and solutions for a CPG company. Often they have varied needs with shipping being a very big part of their costs as well as important to getting their product moving. Brokers are able to anticipate their real needs and provide shipping services that actually work.”
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Types of Freight Services Shipping ice cream? Have a container at a port that needs to be moved? Trying to ship something across the ocean or the border to Canada? It can be tough to find a freight partner that covers all the services you need. Some of the most common freight services are listed below and are noted in the database based on available information for each carrier and broker. l LTL (Less than truckload) usually six pallets or less transported on a truck shared with other companies’ shipments. l FTL (Full truck load) usually 10 pallets or more or when you need a dedicated truck. l Intermodal most often refers to shipping by rail, but involves transporting freight via multiple modes l Temperature Controlled unless otherwise specified, most freight is considered “dry” meaning it is in an enclosed trailer but there is no temperature control so the temperature during transit can vary greatly. For refrigerated and frozen goods, trailers called “reefers” are used to maintain the correct temperature for perishable goods through setting specific temperatures for the trailer, goods placement within the trailer, and/or more/less packing materials. l Expedited you need something moved faster than standard transit times? Some carriers can accommodate expedited services. l White Glove / Last Mile You need your goods to end up in a specific room at a location? Or packaging removed upon arrival? Some carriers can provide these extra services for a fee. l D rayage Drayage usually refers to moving a shipping container a short distance to or from a port. l International Some carriers can accommodate international air or ocean shipping and navigate cross-border transport to Canada or Mexico.
