LTL Freight Carriers Announce 2013 General Rate Increases
06/25/2013 — Matt Nagel
If you pay close attention to the shipping industry and its trends, you may have noticed that LTL (less-than-truckload) freight carriers have been announcing their general rate increases (GRIs) over the last month - one month earlier than last year. As your shipping connection, we've compiled summary information on the rate increases for your reference below. In sharing this information we hope to help shippers make informed decisions about how (and at what cost) your freight gets to where it needs to go.
Which carriers are instituting this increase?
See the chart below for the PartnerShip core carriers that have announced the increases, the percentage at which rates will be increasing, and the dates these increases will go into effect.
Please keep in mind that these percentages are only averages across all origin and destination ZIP code combinations served by each individual LTL carrier. The effect of the rate increase will vary for individual customers and shipments based on geography, product classification, lane, weight, and dimensions. With these rate increases, carriers will often post the new base rates, rules tariff and accessorial charges on their individual websites for customer reference.
Why are these increases necessary?
If you follow the transportation industry closely, there's no question that all LTL carriers are facing sharply higher costs. This includes rising fuel, maintenance, insurance, and labor costs. Wages and salaries are, reportedly, the biggest component. The cost of equipment has also skyrocketed with many carriers paying almost twice as much versus historic prices.
What does this mean for me?
Quite simply (and obliviously), these GRIs mean that you will be seeing a bump in freight charges. As stated above, these GRIs are averages and impact regions differently, so it's important to be aware of how your specific region is affected. If there's a 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.
What can I do to minimize the impact?
Working with an experienced freight partner like PartnerShip helps you soften the blow of annual rate increases. We continue to negotiate the best rates with multiple carriers to keep our rates cost-effective for our small business customers. Additionally, our team of shipping experts provides value-added services to ensure your business is running smoothly. Online freight tools, consolidated invoicing, and inbound management are great perks to working with PartnerShip that save you time.
PartnerShip also provides free services such as invoice auditing for common invoicing mistakes, including missing discounts and carrier errors (approximately 5% to 10% of carrier invoices we review have mistakes in favor of the carrier - which we fix before consolidating and presenting to our customers); and we can often negotiate lower (or no) accessorial charges that add up quickly when sending and receiving freight.
If you have questions about these general rate increases and how they might impact your business, click the button below for a FREE shipping analysis; or feel free to contact us directly at 800-599-2902 or select@PartnerShip.com. Or if you have a shipment, feel free to create an account and start quoting today.