It’s not officially summer until two things start to happen: the temperatures rise into the 80s and LTL carriers begin to announce their general rate increases. Many large LTL (less-than-truckload) carriers kicked off their summer seasons with increases ranging from 4.5%-6%. The effects of the increases will vary based on geography, lane, class, weight, and dimensions. One thing is for certain: the benefits of working with 3PL companies like Trinity Logistics for your LTL shipments are clearer than ever.
The pricing that we offer to clients who arrange their LTL shipments with us is based on contracts we negotiate annually with regional and national LTL providers. We leverage our exemplary reputation in the industry, our relationships with LTL providers, and our massive shipping volume to provide shippers the ability to leverage those in their favor. With these contracts in place, both Trinity and our client base are effectively sheltered from such general price increases as seen last week. Of course, we see some slight changes with accessorial charges, but largely our contract pricing keeps the industry fluctuation manageable for our client base. For clients with adequate volume, we’ve also seen significant advantages in working to secure specific LTL pricing for their own company instead of using Trinity’s blanket rates.
Examples of recent LTL rate increases:
Other changes in pricing for LTL shipments are expected as a result of the recent decisions following a meeting of the Commodity Classification Standards Board (CCSB). As part of the National Motor Freight Traffic Association (NMFTA), this group meets several times a year to examine classification changes in various types of freight. As you probably know, the classification assigned to a product has a bearing on how much it will cost to ship it. The Board met this month and published dispositions on 16 dockets involving commodities ranging from paperboard to stone blocks. If you are involved in arranging transportation for any of the following goods, take a moment to look at the decisions that may affect the rates associated with shipping this freight.
As always, feel free to contact the freight consultants at Trinity Logistics for help in understanding how this may impact your company.
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