Clete Cordero, Vice President at Southeastern Freight Lines and chairman of the NMFTA, discusses a revolutionary new freight classification system that focuses on density and dimensions over commodity type. He highlights its reception among shippers and carriers, promising a fairer pricing model. The conversation also tackles urgent cargo safety issues, particularly in light of recent shipping accidents, and emphasizes the pressing need for enhanced safety measures in ocean freight. Additionally, Cordero explores the challenges procurement teams face in today's economic climate.
20:11
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Classification Now Driven By Density
The NMFC system now prioritizes density and dimensions over commodity type to determine freight class.
Lower density yields higher class and higher rates, aligning pricing with space used on trucks.
question_answer ANECDOTE
Customer Compared Change To Y2K
A customer compared the July classification change to Y2K: lots of pre-change noise but no major disruption afterward.
Clete and shippers report the transition has been surprisingly smooth with minimal issues.
insights INSIGHT
Pricing Moves Toward Space-Based Fairness
The density-based system lets carriers price by space used rather than a flat commodity category.
Clete likens the shift from a buffet model to a pay-by-weight 'frozen yogurt' model for fairness and margin control.
Get the Snipd Podcast app to discover more snips from this episode
Our guest on this week's episode is Clete Cordero, vice president of pricing and traffic at Southeastern Freight Lines. He is also chairman of the National Motor Freight Traffic Association (NMFTA). In July, NMFTA introduced a new system of freight classification to the trucking industry. The new system is design to streamline freight classes by basing it shipments on density and dimensions rather than on commodity type. Our guest shares how the industry is responding to the new classification system and how both shippers and carriers are adapting to it.
A lot of people in transportation and logistics this week have seen the video of a shipping container accident at the Port of Long Beach, where several stacks of containers tumbled off a ship that had recently arrived at the port. Coincidently this week, a new report from the World Shipping Council urges stronger safety measures for ocean cargo. We discuss the areas where more safety is needed and what's behind the current problems.
A challenging business climate is placing increased strain on procurement departments—and it’s slowing their ability to respond quickly and manage risk. This is according to a report from procurement software company Oro Labs. The research findings come from the company’s inaugural State of Enterprise Procurement Ability Report. We share some of the report's findings.
Supply Chain Xchange also offers a podcast series called Supply Chain in the Fast Lane. It is co-produced with the Council of Supply Chain Management Professionals. A new series is now available on Top Threats to our Supply Chains. It covers topics including Geopolitical Risks, Economic Instability, Cybersecurity Risks, Threats to energy and electric grids; Supplier Risks, and Transportation Disruptions Go to your favorite podcast platform to subscribe and to listen to past and future episodes. The podcast is also available at www.thescxchange.com.
Logistics Matters with DC VELOCITY