ArcBest's 5.9% LTL Rate Increase

On August 4, 2025, ArcBest implemented a 5.9% general rate increase (GRI) for its less-than-truckload (LTL) services, marking a shift from its traditional rate adjustment timeline of September to November to an earlier August cycle. This change, as noted by Chief Commercial Officer Eddie Sorg, aligns with an average rate adjustment cycle of 10 to 11 months and reflects ArcBest’s confidence that customers value their service enough to absorb the increase.

At Gain Consulting, we’re diving into what this rate hike means for shippers and how to navigate the evolving LTL landscape.

Understanding the Rate Increase

ArcBest’s 5.9% GRI, effective August 4, 2025, applies to its LTL services through its subsidiary, ABF Freight, and varies by specific lanes and shipments. The increase comes amidst rising inflationary costs, including a 2.7% rise in labor wages and benefits under a collective bargaining agreement with Teamsters-represented employees. According to Sorg, the rate hike is driven by the value ArcBest provides to customers, with approximately 20% of its asset-based business subject to GRIs in 2024.

This adjustment follows a year of pricing discipline, with ArcBest reporting a 5.1% increase in contract renewals and deferred pricing agreements in Q2 2025, alongside a 16% year-over-year increase in revenue per hundredweight in July. However, the LTL market continues to face challenges, including a softer demand environment and a shift of higher-weight shipments to truckload markets, which has reduced weight per shipment and overall tonnage.

Why This Matters for Shippers

The 5.9% rate increase adds to the cost pressures shippers are already facing in 2025, compounded by macroeconomic factors like tariffs and a sluggish industrial sector. According to industry reports, LTL carriers like ArcBest are maintaining margins by focusing on profitable lanes and reliable freight rather than chasing volume with pricing concessions. This rational pricing environment means shippers may see sustained rate increases, particularly as carriers offset rising operational costs.

For businesses relying on LTL services, this hike could impact budgets, especially for those with frequent or high-volume shipments. The shift to an August GRI cycle also suggests carriers are adapting to market dynamics more quickly, potentially signaling more frequent adjustments in the future.

Strategic Implications for Your Business

To mitigate the impact of ArcBest’s rate increase and navigate the broader LTL market, Gain Consulting recommends the following strategies:

• Optimize Freight Mix: Analyze your shipment profiles to consolidate LTL shipments into truckload where feasible, especially for heavier loads, to take advantage of lower truckload rates in a soft market.

• Negotiate Contracts: Engage with ArcBest and other carriers to secure favorable terms during contract renewals. Highlight your consistent business to negotiate discounts or lock in rates before further increases.

• Leverage Technology: Use transportation management systems (TMS) to optimize routing, reduce empty miles,Event and improve load planning, helping to offset rising costs.

• Diversify Carriers: Explore partnerships with other LTL carriers or regional providers to maintain cost efficiency and flexibility, especially in lanes affected by the GRI.

• Monitor Market Trends: Stay informed about tariff impacts and macroeconomic shifts, as these could drive further rate adjustments or changes in freight demand.

  
  

How Gain Consulting Can Help

At Gain Consulting, we specialize in helping businesses adapt to dynamic market conditions like rising LTL rates. Our team can analyze your shipping data, identify cost-saving opportunities, and negotiate with carriers to optimize your transportation strategy. Whether you’re looking to streamline operations, explore alternative carriers, or implement advanced technology solutions, we’re here to ensure your supply chain remains efficient and cost-effective.

Looking Ahead

ArcBest’s 5.9% LTL rate increase reflects a broader trend of carriers adjusting pricing to address inflationary pressures and maintain profitability in a challenging freight environment. By proactively managing your shipping strategy, you can mitigate the impact of these changes and position your business for success.

Contact Gain Consulting today to learn how we can help you navigate this rate hike and optimize your LTL operations for 2025.

Source: David Taube, Trucking Dive, August 7, 2025