C-TPAT: Just how important is it to your business?

[martinetav]

All I can says is 'Big companies, watch out' because us little guys are doing the crap that you can't get your drivers to do or at the very least, do well... Once we have been eliminated...

 

[Michael Ludwig]

@loaders ... so, do you charge your shippers that "require" C-TPAT certification a different rate? Do you pay your C-TPAT carriers a higher rate, regardless of whether or not your shipper requires it?
You're afraid more and more shippers may "require" it ??? I've been through one more audit cycle than bubba-one and bigt, and let me fill you in on a little something your shippers that "require" C-TPAT certification may have neglected to tell you ... 99.9% of them CANNOT pass a C-TPAT audit. Not only can they not pass an audit, they would absolutely freak if I showed up at their door, clipboard in hand, demanding to do an unannounced onsite C-TPAT audit. That is what is required of a carrier by the time you are finished your third round of SCSS audits.
At least with emissions controls, e-logs, and other industry initiatives there is measureable ROI. With C-TPAT, and PIP by extension, there is absolutely nothing in it for the carrier except an additional expense at the bottom of the balance sheet. Nothing more than a big money hole that can never be filled.

As for us, we voluntarily left the program on September 8th.

 

[loaders]

Michael, my point was that these things seem to be more and more common. I don't care one way or the other if carriers have C-TPAT, or if shippers, mine or otherwise require it. If enough shippers demand that the carriers hauling their freight be registered, then from this thread it would appear that there will be fewer carriers in a position to service those shippers. If those carriers require a premium for their services because of their C-TPAT status, then yes, shippers and in turn brokers will have to pay it. Maybe it will become just that, a "premium" service similar to expedite or refrigerated. The shippers that I referred to are the few large, multinational companies who we are fortunate to provide our service to. The vast majority, as you mentioned, are not in the position to fulfill their part of the registration process.

 

[dontgetit]

We also just completed audit by C-TPAT yes we also must complete onsite customer audits I told them I do periodically when ever I happen to be at a customers but I do not document, currently same BS as Michael stated, we have been approved since 2003. right now they say I am not approved until corrective action is taken/improvements!!!!! We are going to have to make a decision as whether to completed said work or remove ourselves. No benefit to our company, decisions, decisions!!!

 

[Michael Ludwig]

@dontgetit ... not much of a decision really. My biggest concern was that if I let them audit and didn't pass, which I knew I wouldn't, then I would have my certification taken away from and that would be reflected publicly. Not wanting that, we decided to withdraw of our own accord so there would be no record of failing an audit.

 

[Jim L]

Wow Michael, you sure know how to start posts that generate activity!. Love it!

As for us, I have to agree that the benefits of C-TPAT participation have dwindled greatly in the past number of years. There rates do not compensate or reward the carrier for having the certification.

Last week I met with a customer of mine who said that it was extremely important but when I questioned her why she didn't ask for and updated SVI number she stumbled. Later on I found that she was giving work to a C-TPAT carrier who was brokering it out to whomever. Her comment was that it was picked up by a C-TPAT carrier and after it leaves her dock its not her concern anymore. In the end, she is scripted to say its important but price is more important.

Until service requirements becomes more important than cost, I don't see much of a future for C-TPAT.