Truckers May Seek Early General Rate Increases

Shippers can expect expedited general rate increases from less-than-truckload carriers, trucking officials at an investor conference in New York said.

Reports that the largest LTL trucking operator, YRC Worldwide, already may be asking shippers for a general rate increase had trucking officials predicting others would follow suit -- even before those reports could be confirmed.

By The Numbers: Cass Freight Index.

"I view that as a positive, and I would think they would not be the only player that goes (for a GRI) this fall," said Richard E. Gaetz, president and CEO of Vitran, a Canadian-based LTL carrier operating on both sides of the U.S. border.

Gaetz was one of several LTL executives at the Dahlman Rose Global Transportation Conference in New York Sept. 8-9. YRC Worldwide Chairman, CEO and President William D. Zollars was scheduled to speak at the conference Thursday afternoon.

LTL carriers have been struggling to raise rates that plummeted during 2009, spurred by a ferocious price war as carriers desperately fought for freight and to grab market share from YRC Worldwide, which narrowly avoided bankruptcy.

Excess capacity has made that goal more difficult to achieve, though analysts expect LTL pricing to rise in the single digits in 2011 and 2012 as capacity tightens.

Typically, trucking GRIs are announced around the New Year, but higher operating costs and strong demand may help accelerate trucking rate increases this fall.

Trucking companies pressed by shippers can point to their ocean-going counterparts. Mediterranean Shipping Co., Maersk Line and OOCL have all announced general rate increases that will take effect Oct. 1.

-- Contact Joseph Bonney at jbonney@joc.com.

-- Contact William B. Cassidy at wcassidy@joc.com.