LTL Rates Soften in 1Q as Carriers Rely on Surcharges
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ublicly traded less-than-truckload carriers told of a softening LTL rate environment in their first-quarter reports, saying they had succeeded in getting fuel surcharges to stick, but were not able to boost freight rates significantly beyond that.
They also said operating ratios had retreated from the peaks of 2005 and returned to the more typical levels of 2004.
YRC Worldwide Chairman and Chief Executive Officer William Zollars said in an April 25 conference call with stock analysts that soft volumes at his carriers and other LTL firms led some trucking managers “to reach for the pricing lever,” trimming rates to attract shippers.
