LTL rate increases are an inevitable part of logistics management. Learn about why LTL rate increases happen and how they work to find out if this might affect your business.
What are LTL Rate Increases?
LTL rate increases are the rising of total service fees for less than truckload shipping method, a commonly-used method of shipment for many businesses across the country. More often than not, LTL is a more affordable shipping method because cargo is combined from multiple sources, allowing logistics managers to ship multiple sets of cargo with one truck. Even though the service itself does not change from quarter to quarter, LTL shipping rates increase routinely and have been notably increasing during the pandemic.
Why Do LTL Rate Increases Happen?
LTL rate increases are happening most notably in early 2022 because of price bumps and capacity issues throughout the supply chain but they are a regular occurrence in non-pandemic times. Carriers are consolidating, leaving fewer available vessels to be used. Shipping costs are increasing across the board, necessitating logistics managers to up their fees to remain profitable and continue to offer quality service to their customers. Businesses who are reliant upon LTL services will notice an increase in pricing for the same services they paid for in months previous, understandably sparking concern for their own wallets. Although it moving to a different logistics manager is likely not going to make a difference, as these price increases are happening across the industry.
Will LTL Increases Impact Me?
LTL base rates are effecting businesses of every industry, from medical supply corporations to retailers shipping across the country. If you are a business that is dependent on LTL services to move your cargo, you will most likely be impacted by the growing base rates. Unfortunately, inflation is impacting almost every aspect of the supply chain, forcing carriers to increase their base rates in order to remain profitable in a challenging market.
Can I Do Anything About LTL Increases?
Though avoiding rate increases altogether is unlikely, shopping around for pricing that best fits your budget and a carrier that you trust is the best way to create a partnership that best fits your needs. If you are looking for LTL shipping services, our team at LogiWorld is happy to discuss our rates and your options. Contact us today for a free quote on your next shipment!