State of the Economy & Supply Chain in 2024

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The global economic outlook for 2024 is marked by a complex interplay of factors that shape the state of economies and supply chains worldwide.

From the lingering effects of the COVID-19 pandemic to geopolitical tensions and technological advancements, understanding the current state of affairs is crucial for businesses, policymakers, and individuals alike. In this blog post, we will delve into key indicators and trends, drawing insights from reputable sources to provide a comprehensive overview.

Two shipping containers hand off cranes in the blue sky with the US and Chinese flags painted on them.

Global Economic Outlook 2024

The global economic outlook for 2024 shows a path of recovery, albeit with varying paces across different regions as we head into colder temps. And according to the International Monetary Fund’s (IMF) World Economic Outlook report (October 2023), the global economy is expected to grow at a rate of 4.9% in 2024. This, reflecting a rebound from the challenges posed by the pandemic. However, uncertainties persist, with factors such as inflation, trade tensions, and the effectiveness of policy responses playing significant roles in shaping the trajectory.

Source: IMF World Economic Outlook, October 2023

Inflationary Pressures

One of the prominent concerns in 2024 is the rise in inflation rates across many economies. Central banks, including the Federal Reserve and the European Central Bank, are closely monitoring inflation dynamics. The World Bank’s Global Economic Prospects report (January 2024) highlights the impact of supply chain disruptions and increased demand on inflation. This is urging coordinated policy responses to address these challenges.

Source: World Bank Global Economic Prospects, January 2024

Supply Chain Challenges

The intricate web of global supply chains has been under strain due to a variety of factors. From semiconductor shortages affecting the automotive industry, to disruptions in logistics and transportation, businesses face unprecedented challenges. The World Trade Organization’s (WTO) Trade Forecast (November 2023) underscores the importance of resilient supply chains and the need for international collaboration to address bottlenecks.

Source: WTO Trade Forecast, November 2023

Technological Innovations and Disruptions

Technology continues to play a pivotal role in shaping the economy and supply chain. The World Economic Forum’s Global Competitiveness Report (2023) emphasizes the importance of digital transformation for economic competitiveness. As businesses adapt to emerging technologies, policymakers grapple with the need for regulatory frameworks that balance innovation with ethical considerations.

Source: World Economic Forum Global Competitiveness Report, 2023

Our advisors are trained to know economic conditions that will affect freight markets around the globe. If you’re in need of assistance, request a quote today, or get in touch with us.

Freight Fraud Prevention For the Holiday Season

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The holiday season is a time of joy and giving, but it’s also a season when the freight industry experiences an upsurge in business.

As we enter the holiday season in 2023, it’s important to remain vigilant against the ever-present threat of fraud in the freight industry. Whether you’re a shipper, carrier, or consumer, being on the alert for fraudulent activities is essential to safeguard your business and ensure a smooth holiday season. Read on to see our freight fraud prevention tips.

Royal blue colored drop shipping trailer

  1. Understand the Common Types of Freight Fraud: Fraud in the freight industry can take various forms, including identity theft, invoice fraud, cargo theft, and false documentation. Being aware of these common types of fraud is the first step in preventing them.
  2. Verify the Legitimacy of Freight Companies: When dealing with freight carriers or brokers, it’s crucial to verify their legitimacy. Check for proper licensing, certifications, and insurance. Don’t hesitate to request references and research the company’s reputation online. Trustworthy businesses will be transparent about their credentials.
  3. Scrutinize Documentation: Double-check all documentation related to your shipments. Ensure that bills of lading, invoices, and delivery receipts are accurate and authentic. Any inconsistencies or discrepancies should raise red flags.
  4. Stay Informed About Current Scams: Fraudsters are continually devising new schemes to deceive unsuspecting victims. Keep yourself updated on the latest scams and fraud prevention strategies. Industry associations, government agencies, and news sources can be valuable resources for staying informed.
  5. Be Wary of Unsolicited Communication: Be cautious of unsolicited emails or phone calls from individuals or companies offering services that seem too good to be true. Fraudsters often use persuasive tactics to trick businesses into fraudulent deals. Verify the legitimacy of any offers before proceeding.
  6. Educate Your Team: If you’re a shipper or part of a logistics team, ensure that your staff is well-informed about the risks of fraud and knows how to recognize and report suspicious activities. Implement strict protocols for verifying the identity of those you work with.
  7. Use Secure Payment Methods: When it comes to financial transactions in the freight industry, opt for secure payment methods and be wary of any requests for unusual payment arrangements. Establish a clear payment process to minimize the risk of theft or fraud.

Established institutions like BM2 Freight have a compliance team on staff that will verify insurance, oversee transactions, and handle any issues that may arise as your freight is transported. This ensures not only that we’re operating under code, but that you and your business also won’t be left in the trenches if things go awry.

If you’re looking to ship with an established freight broker, you can get a load quote through our website. Our team is available 24/7.

For more freight fraud preventions tips and data, check out this article from Truckstop.

Unlocking the Role of a Freight Broker in Third-Party Logistics

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In the world of logistics, where the smooth flow of goods is paramount, the role of a freight broker within a third-party logistics (3PL) firm is pivotal.

These unsung heroes play a crucial role in ensuring that products get from point A to point B efficiently and cost-effectively. But what exactly is a freight broker at a 3PL firm, and what do they do?

Defining the Freight Broker:

A freight broker acts as a liaison between shippers and carriers, helping to facilitate the transportation of goods. They are the middlemen (or women) who make it their business to connect those who have goods to transport with those who have the capacity to move them. When this role is embedded within a third-party logistics firm, it adds another layer of expertise and resources to the equation.

The Key Responsibilities:

  1. Matching Shippers with Carriers: One of the primary functions of a freight broker is to find the right carrier for a shipper’s cargo. This involves analyzing the nature of the cargo, its destination, and other relevant factors to determine the best transportation solution.
  2. Negotiating Rates: Freight brokers are skilled negotiators. They work to secure favorable rates for their clients, balancing cost-effectiveness with the quality of service provided by carriers.
  3. Managing Logistics: Beyond simply booking shipments, 3PL freight brokers also oversee the entire logistics process. This includes tracking shipments in real-time, managing documentation, and handling any unforeseen challenges that may arise during transit.
  4. Compliance and Regulation: Navigating the complex world of shipping regulations and compliance requirements is another crucial aspect of a freight broker’s job. They ensure that all necessary permits and paperwork are in order to avoid any legal issues during transit.
  5. Problem Solving: Freight brokers are often called upon to troubleshoot issues that may arise during transportation, such as delays, rerouting, or damaged cargo. Their expertise in logistics allows them to find quick and effective solutions.
  6. Continuous Communication: Effective communication is at the heart of a freight broker’s success. They maintain ongoing contact with both shippers and carriers to keep everyone informed and ensure a smooth process.

The Benefits of 3PL Expertise:

When a freight broker is sent a load to book, they often have a more-accessible carrier network – as that’s all their focus is on. It’s a known fact that third party logistics firms are more agile when it comes to shipping capacity. And most of the time, brokerages like BM2 Freight are utilizing top-tier technology that makes things move a lot faster. And, with the help of dedicated freight specialists, we’re able to help customers avoid fines and violations for not staying up to date on current shipping regulations.

Interested in becoming a freight broker? Check out our Careers page and send us a message!

Freight Brokerage Jobs for College Grads

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In the ever-evolving world of logistics and transportation, freight brokerage offers a dynamic and lucrative career path.

Congratulations, recent college graduate! You’ve just earned your degree and are eager to embark on a promising career journey. If you have a knack for negotiation, strong communication skills, and a keen eye for logistics, consider becoming a freight broker. Here are some valuable tips for recent college graduates to help you kickstart your journey as a freight broker:

  1. Gain a Solid Understanding of the Industry:

Before you dive into the world of freight brokerage, take the time to learn about the industry. Understand the basics of transportation modes (trucking, rail, air, and sea), shipping terminology, and supply chain management. This foundational knowledge will serve as the bedrock for your career as a freight broker.

  1. Obtain the Necessary Licensing:

In the United States, becoming a freight broker requires obtaining a freight broker license from the Federal Motor Carrier Safety Administration (FMCSA). To do this, you need to complete the application process, including obtaining a $75,000 surety bond or trust fund agreement. Complying with these regulations is vital, as operating without proper licensing can lead to severe penalties.

  1. Build Strong Relationships:

Relationships are at the heart of the freight brokerage business. Establish connections with carriers, shippers, and other brokers. Attend industry events and conferences to network and build your contact list. Strong relationships can lead to better deals and more business opportunities.

  1. Develop Strong Negotiation Skills:

Negotiation is a core skill for a freight broker. You’ll need to strike deals that are beneficial for both the shipper and the carrier. Practice negotiation techniques and understand the art of compromise to secure the best rates and services for your clients.

  1. Invest in Technology:

The freight brokerage industry is becoming increasingly digitalized. Consider investing in transportation management software (TMS) and load boards to streamline your operations. These tools can help you find available carriers, track shipments, and manage your business efficiently.

  1. Focus on Compliance and Risk Management:

Compliance with regulations and risk management are crucial in the freight brokerage industry. Stay up to date with changing laws and regulations, and ensure your operations are compliant. Implement robust risk management strategies to mitigate potential issues and protect your clients’ needs.

Even though these are tips for recent college graduates looking to pursue a job in logistics, these are only a few of the main ingredients you’ll focus on if you choose to consider a job as a freight broker. It’s a tough, but exciting career that allows you to connect to people all over the world and learn fundamental selling skills.

Want the chance to talk to a broker? Check out our Careers page and send us a message through our request form. Just say you want to chat with a freight broker on our team and we can get you connected!

What is Less-Than-Truckload (LTL) Shipping?

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In the world of logistics and transportation, efficiency is paramount.

This is where Less-Than-Truckload (LTL) shipping comes into play.

When it comes to moving goods, companies are always seeking cost-effective ways to transport products from point A to point B. LTL shipping is a crucial component of the transportation industry, designed to accommodate smaller loads and maximize efficiency. In this article, we’ll delve into what LTL shipping is and explore the requirements of an LTL load.

What is LTL Shipping?

LTL shipping is a freight transportation method that caters to shipments that do not require an entire truck trailer for transportation. Instead of dedicating an entire truck to a single shipment, LTL shipping consolidates multiple smaller shipments from different customers into a single trailer. This approach optimizes space and reduces costs, making it a cost-effective choice for businesses with smaller loads.

Requirements of an LTL Load:

To utilize LTL shipping effectively, shippers must understand the requirements for this method:

  1. Smaller Shipments: LTL is best suited for shipments that do not fill an entire truck. Generally, shipments weighing between 150 to 15,000 pounds (68 to 6,804 kilograms) qualify for LTL shipping. These shipments are often too large for parcel carriers but not large enough to justify a full truckload.
  2. Palletization: LTL shipments are typically palletized or crated. Palletization helps protect the goods during transit, facilitates easy loading and unloading, and ensures efficient use of trailer space.
  3. Proper Packaging: Items within an LTL shipment must be adequately packaged to withstand the rigors of transportation. Proper packaging reduces the risk of damage during transit and is essential to prevent damage to other cargo in the trailer.
  4. Accurate Weight and Dimensions: Shippers must provide accurate weight and dimensional information for their shipments. This information is crucial for carriers to determine pricing and to ensure that the cargo can be safely loaded and transported alongside other LTL shipments.
  5. Labeled and Documented: Each shipment in an LTL load should be clearly labeled with shipping and delivery addresses, tracking numbers, and other relevant information. Proper documentation, such as bills of lading and shipping manifests, is essential for smooth handling and tracking.
  6. Freight Class: LTL shipments are assigned a freight class based on factors like weight, dimensions, and the nature of the goods. This class determines the shipping rates, so accurate classification is vital.

Have more questions about your LTL loads? Get in touch with us and our LTL advisor can answer any other questions or concerns you might have.

Happy Shipping!

The Indispensable Role of Freight Brokers in the Transportation Industry

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In the vast and complex world of transportation, the smooth movement of goods from one point to another is essential for the global economy to function efficiently.

Among the key players in this intricate network are freight brokers, unsung heroes who play a pivotal role in connecting shippers and carriers, facilitating the movement of goods and services across various industries.

This blog post aims to shed light on the importance of freight brokers in the transportation industry and the value they bring to the supply chain.

Bridging the Gap:

Freight brokers act as intermediaries between shippers and carriers, bridging the gap between the two and creating a harmonious connection. Shippers focus on producing goods, while carriers specialize in transportation services. The freight broker’s expertise lies in understanding the unique requirements of each party and effectively matching them to optimize the logistics process. By doing so, they ensure that goods are moved efficiently, promptly, and at the best possible cost.

Expertise and Industry Knowledge:

Navigating the transportation industry can be overwhelming, with its regulations, compliance requirements, and fluctuating market conditions. Freight brokers bring extensive knowledge and expertise to the table, acquired through years of experience in the field. They keep abreast of industry trends, carrier capacities, shipping routes, and pricing fluctuations, enabling them to make informed decisions and offer valuable insights to their clients.

Efficient Cost Management:

Freight brokers are adept at finding the most cost-effective transportation solutions for shippers. Due to their extensive network of carriers, they can negotiate competitive rates, ensuring that shippers don’t overspend on shipping costs. Moreover, they help carriers optimize their routes, making the most of their resources and reducing fuel expenses. This cost management benefits both parties, fostering a mutually beneficial relationship in the long run.

Flexibility and Adaptability:

In the dynamic landscape of transportation, unforeseen circumstances like weather disruptions, capacity shortages, or unexpected surges in demand can throw a wrench into the logistics process. Freight brokers are skilled at adapting to these changing conditions swiftly. Their ability to find alternative solutions and reroute shipments in real-time helps keep the supply chain intact, minimizing delays and ensuring business continuity for shippers and carriers alike.

Compliance and Documentation:

The transportation industry is heavily regulated, with various legal and administrative requirements that need to be met. Freight brokers play a crucial role in ensuring that all necessary permits, licenses, and paperwork are in order. By taking care of these compliance matters, they save shippers and carriers valuable time and resources, reducing the risk of penalties and operational disruptions.

Risk Mitigation:

Freight brokers act as risk managers, protecting their clients from potential liabilities and pitfalls. They carefully screen carriers, ensuring they are properly licensed, insured, and financially stable. This risk assessment helps prevent accidents, theft, or damage to goods during transit. Additionally, freight brokers often offer cargo insurance options, providing an added layer of protection.

If you’re in need of reliable freight services, we’re always here for you! Request a quote through our online form.

BM2 FREIGHT Ranks No. 2959 on the 2023 Inc. 5000 List

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For the 4th Time, BM2 Freight Makes the Inc. 5000, at No. 2959 in 2023

NEW YORK, August 15, 2023 – Inc. revealed today that BM2 Freight ranks No. 2959 on the 2023 Inc. 5000, its annual list of the fastest-growing private companies in America. The prestigious ranking provides a data-driven look at the most successful companies within the economy’s most dynamic segment—its independent, entrepreneurial businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other household name brands gained their first national exposure as honorees on the Inc. 5000.

“BM2 Freight is proud to announce that we have been an Inc 5000 winner for 4 years in a row. This is a testament to the hard work of our people who do the little things right everyday,” says Pete Katai, Executive Vice President of Business Development at BM2 Freight.

The Inc. 5000 class of 2023 represents companies that have driven rapid revenue growth while navigating inflationary pressure, the rising costs of capital, and seemingly intractable hiring challenges. Among this year’s top 500 companies, the average median three-year revenue growth rate ticked up to an astonishing 2,238 percent. In all, this year’s Inc. 5000 companies have added 1,187,266 jobs to the economy over the past three years.

For complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, location, and other criteria, go to www.inc.com/inc5000.

The top 500 companies are featured in the September issue of Inc. magazine, available on newsstands beginning Tuesday, August 23.

“Running a business has only gotten harder since the end of the pandemic,” says Inc. editor-in-chief Scott Omelianuk. “To make the Inc. 5000—with the fast growth that requires—is truly an accomplishment. Inc. is thrilled to honor the companies that are building our future.”

BM2 Freight is proud to be recognized on the Inc. 500 list, as well as a 2x Food Logistics Top 3PL and Cold Storage Provider honoree, a 3x NASTC Best Broker, and 2x Cincy Magazine Best in Business honoree.

Our goal is to have our FTL and LTL services make a difference in the shipping capacities of our customers, while making our carriers’ needs a top priority.

CONTACT:

LORI RINEHART

MARKETING MANAGER

BM2 FREIGHT SERVICES, INC.

lrinehart@bm2freight.com

More about Inc. and the Inc. 5000

Methodology

Companies on the 2023 Inc. 5000 are ranked according to percentage revenue growth from 2019 to 2022. To qualify, companies must have been founded and generating revenue by March 31, 2019. They must be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2022. (Since then, some on the list may have gone public or been acquired.) The minimum revenue required for 2019 is $100,000; the minimum for 2022 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Growth rates used to determine company rankings were calculated to four decimal places.

About Inc.

Inc. Business Media is the leading multimedia brand for entrepreneurs. Through its journalism, Inc. aims to inform, educate, and elevate the profile of our community: the risk-takers, the innovators, and the ultra-driven go-getters who are creating our future. Inc.’s award-winning work reaches more than 50 million people across a variety of channels, including events, print, digital, video, podcasts, newsletters, and social media. Its proprietary Inc. 5000 list, produced every year since 1982, analyzes company data to rank the fastest-growing privately held businesses in the United States. The recognition that comes with inclusion on this and other prestigious Inc. lists, such as Female Founders and Power Partners, gives the founders of top businesses the opportunity to engage with an exclusive community of their peers, and credibility that helps them drive sales and recruit talent. For more information, visit www.inc.com.

For more information on the Inc. 5000 Conference & Gala, slated for October 31 – November 2 in San Antonio, visit http://conference.inc.com/.

 

What Retailers Should Look for When Partnering with Brokerages

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Brokerages seem to be a dime a dozen, but that’s not always the case. We’re breaking down five things all retail shipping and supply chain associates should be looking for when choosing the right brokerage to ship with.

As the American Trucking Associations’ website states, trucking still remains the primary mode of freight transportation.

Seasoned shippers know what a reliable broker looks like. And they understand they are necessary for busy season rushes like back to school and holiday shopping.

But if you’re just getting started, how do you know which brokerage is the right one?

Here are five things all shipping and supply chain associates should be looking for when working with brokers:

  1. On time delivery rates

Imagine this: you’re the supply chain manager at a big box store. You’re responsible for managing the amounts of products your company needs at the store at any given time. It’s peak season, and your first month at the job. It’s important you build a relationship with a broker that understands your industry and can guide you on trends so that your shelves aren’t under or overstocked.

  1. Industry knowledge

As we mentioned above, nothing beats industry knowledge. Brokers who have been in the game for a long time are able to help shippers understand the highs and lows of consumer habits. They also closely monitor economies around the world to get a better idea of how products are flowing, if there are any hang ups at major ports, and how the freight industry will be impacted. Since trucking is the primary mode of freight transportation, it pays to have a seasoned broker on your side. It’s also important to note the training that brokerages are putting into their employees. At BM2, we have training department that sticks with all new hires for the first 90 days of employment.

  1. Dedicated point of contact

Having a dedicated point of contact for your shipments makes everyone’s life easier. Our teams are structured in a way that allows for all shipments to have that main contact, so you know exactly who you are dealing with. And our offices are staffed 24/7. When our brokers aren’t physically in the office, our After-Hours teams are. Carriers and shippers know that if they call our hotline, a human will be at the end of the other line ready to help.

  1. Compliance

Drivers can face major repercussions if they aren’t operating with the right authority or insurance coverage. They also have to keep their trucks at optimal condition to avoid safety fees and violation tickets from the Commercial Safety Vehicle Alliance. If your driver is struck down with a fee or loses their license, your product isn’t arriving on time. And if you’re handling it yourself, you risk losing money by having empty shelves. If you’re working with a broker that doesn’t have a dedicated compliance team, how do you know your carriers are following all safety regulations? And if your product requires special shipping instructions, are you able to ensure they meet those requirements? This is where specialized brokers with compliance teams come in handy.

  1. Updated technology

Technology has taken the world by storm, and it helps brokers and carrier service teams do their jobs better. Just like retailers need technology to scan inventory, run checkout lanes, and surveillance their stores, brokers need reliable technology to monitor shipments. For instance, our real-time tracking software gives the most accurate location readings so you can run your supply chain better. With EDI, MacroPoint™ and FourKites©, business intelligence platforms that help decrease costs and an online tracking platform, we’ll keep you connected to your shipments.

Choosing the right broker for your business can be tough. These five steps will help you get started when choosing a trusted broker to handle your retail and consumer packaged goods shipments.

As always, we’re here to help. Check out our Expertise page to view the different types of service offerings we have or request a quote through our online form.

BM2 Freight
(800) 319‑1115
sales@bm2freight.com
Get a quote now
50 E Rivercenter Blvd. Ste. 525
Covington, KY 41011