Another round of GRIs is under way
Ray Bohman -- Logistics Management, 7/1/2002
As we've seen over the past two years, most less-than-truckload (LTL) carriers—either individually or through their regional rate bureaus—have chosen mid-summer as the time to go forward with general rate increases (GRIs). This year, with a few notable exceptions, carriers are pretty much following the same timetable.
The 2002 round of general rate increases was jump-started when Yellow Transportation (formerly called Yellow Freight System), the nation's largest LTL carrier, announced in late May that it would institute a general rate increase averaging 5.9 percent on June 3. Not only is that increase higher than last year's hike, which averaged 4.9 percent, but it also took effect more than two months earlier than Yellow's Aug. 6, 2001, GRI.
Consolidated Freightways Corp. almost immediately followed suit by announcing that it would initiate an increase averaging 5.95 percent, also on June 3. That compares to the average 5.1 percent GRI it put into effect on Aug. 1, 2001. CF also raised its minimum charges by $5.50 per shipment.
Many observers expected that other carriers would quickly follow suit and institute GRIs earlier than they did last year. But a few weeks went by with virtually no activity until USFreightways' LTL subsidiaries—USF Bestway, USF Dugan, USF Holland, USF Reddaway and USF Red Star—went forward with GRIs averaging 5.9 percent, effective June 24. The USF carriers also hiked their absolute minimums by 11.9 percent.
At press time, the last major carrier to announce a general rate increase was ABF Freight System. It set an increase of 5.8 percent to take effect on Aug. 1, compared to the 4.9 percent GRI it instituted on the same date last year. ABF's upcoming increase will vary by lane and shipment characteristics.
As for the nation's six major motor carrier rate bureaus, five have already approved increases that will become effective in late July or early August. The accompanying table gives a rundown of the increases for LTL shipments.
Not only are this year's bureau increases higher than the corresponding hikes last year, but the Middlewest and Pacific Inland's increases are earlier than they were in the summer of 2001. Those increases went into effect on Aug. 6 and Sept. 1, respectively.
We should note here that some bureau members have already exercised their right of independent action (or will do so soon) by implementing lower increases that are more in line with those of major carriers such as Yellow, CF and ABF.
Rate Bureau
| % Increase | Effective Date | |
| Middlewest Motor Freight Bureau | 6.75 | July 22 |
| Pacific Inland Tariff Bureau | 5.95 | Aug. 1 |
| North American Transportation Council | 5.50 | Aug. 5 |
| Rocky Mountain Motor Tariff Bureau | 5.95 | Aug. 5 |
| SMC³ (Southern Motor Carriers) | 7.30 | Aug. 5 |
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