This year's round of LTL motor carrier general rate increases (GRIs) is just about upon us and it looks from here as if many will be very similar to the increases the carriers put through last year.

The first individual carrier of any size to raise its rates this year, as last, was Pitt Ohio Express. The Pittsburgh-based regional LTL carrier increased its rates by 5.9 percent, across the board, on April 30—a day earlier than last year's rate action (it had boosted its rates by the same amount on May 1, 2000).

Next to act was Central Freight Lines, which is headquartered in Waco, Texas. The company announced that effective Aug. 6, it would increase both LTL and truckload rates by 5.95 percent. Per-shipment minimum charges and absolute minimums will be going up by $1.50 per shipment. Last year's increase took effect on Aug. 21.

Other major LTL carriers, such as Yellow Freight System, Roadway Express, Consolidated Freightways, and ABF, are expected to follow suit with their own GRIs. At least two carriers—Con-Way Transportation Services and USFreightways—stated in May that they would be going forward with rate increases but that their 2001 GRIs might not be as high as last year's.

Regional rate bureaus, too, have been moving forward with general rate increase proposals. The first to initiate a proposal was the Pacific Inland Tariff Bureau (PITB). Its members met on May 17 and approved an across-the-board increase of 5.9 percent to take effect on Sept. 1—the same date it raised its rates last year. The big difference this year is that the current rate increase of 5.9 percent will be considerably higher than last year's 4.5-percent hike. PITB members serve the Pacific Northwest.

At least three other rate bureaus have proposals up for consideration by their respective general rate committees. One of them is SMC3 (formerly known as the Southern Motor Carriers Rate Conference), which docketed a proposal for an increase not to exceed 5.95 percent, with an effective date of Aug. 6 vs. Sept. 1 last year.

The Middlewest Motor Freight Bureau's proposal calls for an increase not to exceed 5.9 percent, while the Rocky Mountain Motor Tariff Bureau would limit its increase to no more than 6.0 percent. No hint yet as to effective dates, but we expect a time frame of somewhere between Aug. 6 and Sept. 1.

All this is coming to pass at a time when carrier revenues and profits are falling —some quite substantially. Not only are truckers feeling the effects of the U.S. economic slowdown, but they also are facing rising expenses for driver wages, property and health insurance, terminal real estate, operations, and dock workers.

Although these upcoming increases will not apply on freight moving under contracts, carriers will clearly be seeking increases once those contracts come up for renewal. Obviously, some tough negotiations lie ahead.