The Average GRI Exceeds 5% for the Third Year in a Row
Con-way Freight, FedEx Freight, and YRC Worldwide announced a 6.9% increase in LTL base rates effective July 9. All three carriers are also adjusting their minimum charges and accessorial fees, while leaving fuel surcharge unchanged.
UPS Freight is raising rates by 5.9%. Its rate adjustment took effect on July 16 and applies to LTL base rates, minimum charges, and accessorial charges.
Other LTL carriers have followed suit:
|
|
Carrier |
GRI |
Effective |
|
|
ABF Freight System |
6.9% |
June 25 |
|
|
Con-way Freight |
6.9% |
July 9 |
|
|
FedEx Freight |
6.9% |
July 9 |
|
|
Old Dominion Freight Line |
4.9% |
August 6 |
|
|
R+L Carriers |
6.9% |
July 9 |
|
|
Saia |
6.9% |
July 9 |
|
|
UPS Freight |
5.9% |
July 16 |
|
|
YRC Worldwide |
6.9% |
July 9 |
LTL and truckload carriers say higher operating costs, especially for labor and equipment, make higher rates and cost-cutting necessary. David G. Ross, an analyst with Stifel Nicolaus, expects LTL rates to climb around 4% overall in 2012 as trucking operators extend the pricing power they’ve enjoyed since 2010.
Last September, FedEx Freight raised base rates 6.75%. National carriers including Con-way Freight, YRC Freight and UPS hiked tariff pricing 6.9% in July and August. Regional LTL carriers raised rates by an average of 6.8% during the same period.