2014 Freight General Rate Increases
05/01/2014 — Matt Nagel
It's that time of year again. Freight carriers have been announcing their general rate increases (GRIs) this spring. As we did last year, PartnerShip has compiled some details for your benefit so you can make well-informed, money and time saving decisions about the best way to handle your freight shipping.
If you're a seasoned freight shipper, you probably know all too well the ins and outs of the GRIs. However for our more novice shippers, the GRIs are just what they sound like — increases in freight rates. There are many reasons why these increases are necessary, but the main reason is a sharp increase in costs that carriers face every year due to things like rising fuel, maintenance, insurance, and labor costs.
As straight forward as the reasoning for the increases sound, there are also some less obvious nuances to the GRIs that, as your shipping connection, we can help to clear up. One of the more important things to remember is that these rate increases are only averages across all origin and destination ZIP code combinations served by each individual carrier. The effect of the rate increase will vary for individual customers and shipments based on geography, product classification, lane, weight, and dimensions. Using geography as an example, if there's an "average" GRI of 6%; some areas may see a 3% increase and some may see a 9% increase in freight charges. The customer in the area with a 9% increase will obviously see a larger bump in cost, especially if distribution is regional.
Listed to the right, we've compiled GRI for the five largest national LTL freight carriers, the percentage at which their rates will be increasing, and the dates these increases will go into effect.
Remember, PartnerShip is here to help you offset these increases. We've negotiated with carriers on your behalf to bring you the best rates in the industry with the most reliable national and regional carriers. In addition to great rates, PartnerShip brings a dedicated freight team, free money-saving services like invoice auditing and inbound management, and easy-to-use online freight tools ... all designed to save your company time and take the guesswork out of freight shipping (click here to create a PartnerShip.com account if you haven't already).
If you would like more information on this year's GRIs, please contact PartnerShip at 800-599-2902 or email select@PartnerShip.com. Click the button below and we'll be happy to provide you with a free, no-obligation shipping analysis to help you determine which carriers and which lanes will save you the most money on your freight shipping.