YRC Worldwide hiked its contract rates about 4 percent in the second quarter as the less-than-truckload carrier hauled more long-haul and regional freight.
The company had more luck raising rates in the quarter as competitors showed more “pricing discipline,” Chairman, President and CEO William D. Zollars said.
“LTL industry dynamics are gaining traction,” Zollars said in a conference call with financial analysts. “You’ve seen the GRI (general rate increase) announcements.”
Four of the five largest U.S. LTL carriers, including YRC Worldwide, will raise non-contract rates and other charges 6.9 percent, effective July 25 or Aug. 1.
Contract rates, which cover most LTL traffic, are rising at nearly 4 percent, Zollars said, “up another half or three quarters of a percent” from the first quarter.
YRC Worldwide is building volume at both its national and regional carriers, but isn’t lowering prices to regain market share at the expense of profitability.
“We’re being very careful to make sure we improve our book of business as we grow the business,” said Zollars. “Customers are coming back at higher price levels.”
Revenue per hundredweight improved 6 percent at YRC National and 6.5 percent at YRC Regional, compared with 1.8 percent in the first quarter at both groups.
Contact William B. Cassidy at firstname.lastname@example.org. Follow him on Twitter at @wbcassidy_joc