It looks like freight rates will be going up again this fall.
But one motor carrier rate bureau is floating a proposal for a smaller increase in return for a pledge from shippers not to seek additional discounts.
SMC, formerly Southern Motor Carriers, announced a general rate increase with an overall revenue impact of 3.57% effective Oct. 1.
The increase is smaller than in past years and is less than what is expected to be announced by major less-than-truckload carriers in the weeks ahead.
Overnight Transportation Co. of Richmond, Va., said Aug. 11 that it would implement an increase of 4.9% on Sept. 27 on all non-contractual rates in the United States and Canada.
“Everyone’s costs continue to rise, and adequate returns on investments are needed,” said Pat Hanley, chief financial officer at Overnite. “If we are to continue to be a healthy company and provide our customers the best service, we must invest in the technology and equipment necessary, and we must achieve sufficient profits to make these investments.”
Regional carrier Pitt-Ohio Express of Pittsburgh also announced a rate increase effective Aug. 2.
For the full story, see the August 16 print edition of Transport Topics. Subscribe today.
