Riverside Logistics Hires New Chief Financial Officer with over 30 years of Financial and Executive Management Experience

Melvin Stone - Riverside Logistics - Chief Financial Officer

April 17, 2020

Press Release

Melvin Stone has joined Riverside Logistics as Chief Financial Officer.  He has over 30 years of executive management experience, most recently serving as President/CFO of Surf or Sound Realty in North Carolina.  He and his family are returning to Richmond where he previously served as CFO of Quantum Resources Corporation. In his new role, Stone will be responsible for oversight of all financial business transactions and working with the CEO to identify and capitalize on new business expansion opportunities.

Stone is a graduate of The College of William and Mary, with a B.B.A. in Accounting, and is a Certified Public Accountant.

Riverside Logistics is a third-party logistics and supply chain management company providing a full complement of third-party logistic services and total transportation and warehousing solutions. They are headquartered in Richmond, Virginia.

TRENDS IN TRANSPORTATION-Growing use of DENSITY-BASED PRICING by LTL CARRIERS

by James Durfee

Within the last 3 years, less-than-truckload (LTL) carriers have shifted away from the traditional National Motor Freight Classification (NMFC) rate-setting formula.  In the past carriers assigned a distinct class rating to each different commodity.  Because of new scanning technology that allows carriers to weigh and inspect each shipment it has become easier to utilize more density-based pricing. Density-based pricing prices freight according to the weight per cubic foot of space (cubic feet) the shipment uses in the truck. This model has had a significant impact on shippers’ freight costs.  Due to this change, it’s important to understand the new pricing methods for LTL shipments, how it impacts rates and how to negotiate rate structures.

TRADITIONAL NMFC CLASS RATING

As background, the “class rating” assigned to LTL products, runs from a low of class 50 to a high of class 500. The higher the class the higher the cost. A rough rule-of-thumb is that using class 100 as the baseline, class 50 would essentially be 50% of the baseline cost and class 200 would approximate 200% of the baseline cost. This is a very rough approximation, but it illustrates how significantly costs can vary based on the CLASS RATING of a shipment. Class ratings are normally assigned using the following 4 characteristics:

  • Density – pounds per cubic foot
  • Handling – ease or difficulty handling product
  • Stow Ability – ability to effectively load product in the trailer
  • Liability – cost in dollars per pound to compensate pay for lost/damaged product.

PURE DENSITY BASED PRICING

Pure Density-Based pricing assigns a class to product just using the following formula:

  • Length x Wide x Height in inches= cubic inches / 1728 = cubic feet.
  • Divide weight of product (including pallet weight) by cubic feet = DENSITY

If the density = 6, the product would be classed at class 125

If the density < 4, the product would be classed at class 250

In this case the cost of the shipment could almost double if the density drops by 2 lbs./cubic ft. That’s a substantial difference and points out how important it is to understand the density of your product and how it is classified.  Remember, density-based pricing limits carrier liability.  The reduced insurance risk then falls back on the shipper to have additional insurance for high value items.

If you would like to discuss this topic further, contact one of our sales representatives at 804-729-8189.

By James Durfee

Riverside Logistics billboard goes up on interstate 95!

Riverside Logistics is very excited to see our new billboard go up on 95. This is a great way  to be able to tell the Riverside story by using a powerful and strategically located medium. The Billboard is located as you head South on Interstate 95 just before you get to the Chippenham/Route 150 exit. It is also almost directly across from The Richmond Marine Terminal in front of our new warehouse. Please give us a call if you need logistics services near this growing area!

 

 

Riverside Billboard

Riverside Billbaord on 95

Riverside Logistics’ certification has been renewed for three more years.

SWAMRiverside Logistics’ SWaM certification has been renewed for three more years. “The Small, Women-owned, and Minority-owned Business (SWaM) certification program is a state program of the Commonwealth of Virginia. The purpose is to enhance procurement opportunities for SWaM businesses participating in state-funded projects.” It is administered by the Virginia Department of Minority Business Enterprise (“DMBE”). Riverside Logistics qualifies as a small business independently owned and employing less than 250 employees. It was initially certified in 2009.

Why is Richmond, Virginia one of the best locations to distribute to the United States?

Richmond, the Capital of Virginia, is among America’s oldest cities, yet it is modern and vibrant. Eight presidents were birthed in Virginia. Patrick Henry declared, “Give me liberty or give me death” at its St. John’s Church, leading to the Revolutionary War. Today the revolution is growth! It is centrally located on the East Cost within about a day’s drive of 50% of the U.S. population.

Richmond is only a quick 90 miles from the major metropolitan areas of Washington, DC to the north and Norfolk/ Hampton Roads to the east. Today 18 Fortune 500 companies have their headquarters in Virginia. Virginia has over 8 million people that enjoy world-class event facilities, hotels and entertainment.

Although Richmond and Virginia’s American History is notable the real story is how rapidly it is growing today!

  • Shipments can reach 70% of the U.S. population within 2 days
  • Shipments can reach 50% of the U.S. population within 1 day
  • Norfolk Port is only about and hour and a half away from Richmond.
  • The Richmond Port offers a very affordable alternative for companies to bring product further into the East Coast and avoid congestion.
  • 55% of the U.S. Population lives within a 750-mile radius
  • Richmond is home to the Federal Bank of Richmond one of 12 Federal Reserve Banks.
  • The population of the Richmond MSA exceeds 1,000,000
  • Cultural events and Entertainment reflect its growth into a cosmopolitan city.

——————-

Virginia has long been the best state for business.  

(from the VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP)

  • Business-first values

-Virginia’s leaders are committed to business’s needs, free enterprise, and maintaining a profit-friendly environment

-An experienced and professional economic development team—focused on concierge service and solutions for business

–  Right-to-work state—ninth lowest unionization rate in the country at 6.2%

  • Easy access to domestic and global markets

-Washington Dulles International Airport

-The Port of Virginia

-Two of the nation’s largest railroads operate in Virginia

  • Stable and low operating costs

-6% corporate income tax rate has not been increased since 1972

-One of the lowest average workers’ compensation costs and unemployment tax burden’s in the U.S.

  • Talented and educated work force

-Virginia has the 2nd highest concentration of tech workers in the nation in  2014, with nearly 1 in 10 workers in tech

-Approximately 22,000 doctoral scientists and engineers are employed in Virginia

—one of the highest concentrations in the nation

-Approximately 575,000 students are enrolled in over 100 in-state institutions of higher education

Highly-Skilled, Educated and Talented Workforce

Virginia successfully supports its substantial industry base with highly skilled and educated talent.  Employers in this right-to-work state find a vibrant, tech-savvy and diverse multi-cultural talent pool growing faster than the national average.

  • Virginia is a right-to-work state. At 6.2%, Virginia has the ninth lowest unionization rate in the country.
  • Population of 8.3 million, and a workforce of nearly 4.3 million.
  • One of the nation’s most educated workforces. One in three Virginians holds a bachelor’s or advanced degree.
  • Colleges and universities with campuses in Virginia enroll over 575,000 students, and over 96,000 Associate, Bachelor, Master’s and Doctoral degrees are awarded annually.
  • Strong occupational and technical training programs designed to meet manufacturers’ needs are provided by the Virginia Community College System (VCCS) through its 23 colleges.
  • Thousands of highly trained, disciplined and motivated military personnel in Virginia enter the civilian labor force each year.

More than 22,000 Doctoral scientists and engineers are employed in Virginia (The National Science Foundation).

World-Class Transportation Infrastructure

The Commonwealth’s modern transportation infrastructure ensures optimal access to major east/west and north/south highways, local and international airports, seaports, rail lines, and shipping channels.

  • Virginia maintains the third largest state-maintained transportation network including the major Interstate routes of I-95, I-81, I-64, I-85, I-77, and I-66.
  • Fourteen commercial airports serve Virginia, including Washington Dulles International and Ronald Reagan Washington National airports, with non-stop commercial airline service to 158 destinations worldwide, including 50 international destinations.
  • Ten railroads operate on the state’s network of nearly 3,400 miles of railway (excluding trackage rights). Two of the nation’s largest railroads, CSX Corporation and Norfolk Southern Corporation, are located here. Commuter rails near the larger cities allow workers to traverse efficiently.
  • The Virginia Port Authority (VPA) is the Commonwealth’s leading agency for international transportation and maritime commerce and manages Virginia’s six general cargo terminals: Norfolk International Terminals, Portsmouth Marine Terminals, Virginia International Gateway in Portsmouth, Newport News Marine Terminal, the Virginia Inland Port in Front Royal and the Port of Richmond.
  • The Port of Virginia is one of the three busiest container ports on the U.S. East Coast and a leading gateway for the entire U.S. market.  The Port boasts the single best infrastructure on the East Coast with a 50-foot ice free channel, no overhead obstructions, on-dock rail service (two Tier 1 railroads), easy access to ocean lanes, and is the only East Coast port with Congressional authorization to dredge to 55 feet.
  • Phase I of the Dulles Corridor Metrorail Project (also known as the Silver Line) was completed in 2013 with four stops in Tyson’s Corner. The balance of the 23-mile, $6.8 billion project is scheduled to be completed in 2016, ending west of Dulles International Airport in Loudoun County.

State-of-the-Art Infrastructure

Virginia offers excellent power, water, telecommunications and other infrastructure resources necessary for success in today’s global marketplace, and maintains a stable energy resource pool to serve present and future residential, commercial, industrial, and transportation needs.

  • Virginia offers a robust telecommunications network with more than 60 broadband providers. It is one of the most connected states in the country. More than 93% of Virginians have access to wireline service, with 76% having access to wired broadband of at least 100mbps, and 98% have access to mobile broadband service.
  • Virginia is one of the most connected states in the nation with access to a robust fiber network that matches or exceeds virtually every domestic market and most major financial centers around the world. The Commonwealth hosts prominent commercial internet exchange points, and 70 percent of the world’s internet traffic passes through the Metropolitan Area Exchange East located in Ashburn, Virginia. The Richmond area has been connected to Ashburn with “dark fiber” opening opportunities along the I-95 corridor. In Southern and Southwest Virginia, the benefits of a 1,500+ mile advanced fiber-optic broadband network connects more than 100 certified GigaParks.
  • Virginia also has the infrastructure to support multinational business, as evidenced by $19.2 billion in Virginia exports in 2014. There are six foreign trade zones designed to encourage business to participate in international trade.