LTL Freight Carriers announce General Rate Increases: 5 Reasons Why
In April, less than truckload (LTL) freight carriers announced 4-6% general rate increases for non-contract shipments. General rate increases are typically announced anywhere from late May to early July. The April announcement came much earlier than usual. What does this mean to shippers and why did this occur? GRI, or general rate increase, is the average amount by which carriers’ tariff rates increase applied to base rates. It is extremely difficult for an individual shipper to calculate how this rate increase will impact their bottom line. The percentage increase will vary based on shipping region, weight breaks, zip codes and freight classes. Working with a logistics broker can help shippers understand the rate increase and even help keep their costs down.