LTL rate increases on par with last year's GRIs
Ray Bohman -- Logistics Management, 7/1/2003
Every summer, most major national and regional less-than-truckload carriers implement a round of general rate increases (GRIs), and this year certainly is no exception.
Starting in late April and continuing through June and July, with a handful holding out until August, most LTLs are raising rates for their non-contract customers.
Most LTL carriers have raised their rates by the same amounts as they did last year—an average of 5.9 percent. A handful came in at 5.95 percent, and two carriers, Saia and Jevic Transportation, topped the list at 6.2 percent. To date, only ABF Freight System has announced an increase below 5.9 percent, coming in with 5.85 percent.
Most regional motor carrier rate bureaus also are taking action to raise their LTL class rates. The first bureau to do so was the Pacific Inland Tariff Bureau. On July 1, it boosted its rates by an average 5.98 percent. California intrastate rates, however, were hit with increases averaging 6.5 percent. The Middlewest Freight Bureau has set July 28 for an average 5.95 percent GRI. That will be followed by an average hike of 6.1 percent from SMC3 (Southern Motor Carriers), which is slated to be effective August 1.
In keeping with the trend of the past three to four years, some carriers have advanced the effective dates of their GRI's by anywhere from a few days to nearly two months.
At right is a partial list of LTL carriers that boosted their class rates in June, together with a comparison of this year's effective dates with last year's.
Other LTL carriers have set effective dates for July or August. Roadway Express, for example, will implement a GRI averaging 5.9 percent on July 13.
Bear in mind that the published GRIs are average increases. These percentages, therefore, do not apply to all rates and lanes across the board. This is the time of year when LTL carriers "tweak" their base rates, and rates on some lanes will be increasing by percentages that are higher than the average—sometimes substantially higher. To avoid surprises, you may want to check out the new rates for the major lanes you use.
| Carrier | Average % Increase | 2003 Effective Date | 2002 Effective Date |
| USF Bestway | 5.9% | June 2 | June 24 |
| USF Dugan | 5.9% | June 2 | June 24 |
| USF Holland | 5.9% | June 2 | June 24 |
| USF Reddaway | 5.9% | June 2 | June 24 |
| USF Red Star | 5.9% | June 2 | June 24 |
| Central Freight Lines | 5.95% | June 2 | June 10 |
| Jevic Transportation | 6.2% | June 2 | July 29 |
| Saia | 6.2% | June 9 | July 29 |
| Overnite Transportation | 5.95% | June 23 | July 1 |
| Motor Cargo Industries | 5.9% | June 30 | June 30 |
| FedEx Freight | 5.9% | June 30 | July 22 |
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