
As U.S. shippers, staying informed about changes in the logistics landscape is crucial for maintaining efficiency and cost-effectiveness in your supply chain. On January 13, 2025, Roadrunner, a notable less-than-truckload (LTL) carrier, announced its first general rate increase (GRI) since 2021. Here at Gain Consulting, we aim to break down this development and provide tailored advice to help you navigate these changes.
The Details of Roadrunner's Rate Adjustment
General Rate Increase (GRI): Roadrunner has implemented a 6.9% GRI across multiple tariff codes, effective as of Wednesday following the announcement on Monday, January 13. This adjustment targets specific lanes within their direct metro-to-metro long-haul network, which means the impact on your costs could vary based on your shipping routes.
Accessorial Charges: Alongside the GRI, Roadrunner has introduced numerous accessorial charges under the Roadrunner 100 Rules Tariff. These can include fees for additional services like liftgate usage, residential delivery, and more, potentially increasing the overall cost of shipping.
Reason for Increase: According to Thu Vu, Roadrunner’s Director of Pricing, this hike is essential to align with the carrier's service enhancements and to cover increased operational costs. The aim is to sustain service quality and fund further network investments.
Comparison with Industry Trends
Roadrunner's adjustment is not isolated. Here's how it stacks up against other carriers:
ABF Freight implemented a 5.9% GRI on September 9, 2024.
FedEx Freight announced a 5.9% increase effective January 6, 2025.
Saia increased rates by 7.9% starting October 21, 2024.
Old Dominion Freight Line saw a 4.9% hike from December 2, 2024.
These adjustments reflect a broader trend in the LTL sector to address rising operational costs and invest in service improvements.
Implications for U.S. Shippers
Cost Analysis: With a 6.9% increase, shippers should reassess their logistics budgets. Look into how these changes might affect your cost per unit, especially if your operations involve the affected metro-to-metro lanes.
Contract Reviews: Now is a critical time to review existing contracts with carriers. Consider negotiating terms or exploring options for rate mitigation through volume commitments or service level agreements.
Strategic Shipment Planning: Optimize load consolidation where possible to mitigate the impact of both GRIs and accessorial charges.
Alternative Carriers or Modes: Evaluate other carriers or even alternative shipping modes like parcel or intermodal if they present a more cost-effective solution for certain routes.
Technology and Efficiency: Leverage technology for better freight visibility and route optimization. Tools like SONAR, mentioned in the announcement, can provide insights into rate trends and help in making informed decisions.
Gain Consulting's Support
At Gain Consulting, we specialize in helping shippers navigate these changes:
Rate Benchmarking: We provide analysis to benchmark your current rates against market standards post-GRI.
Strategic Consulting: Our team can work with you to revise your shipping strategies or negotiate better terms.
Technology Integration: Assistance in adopting or optimizing technology solutions for real-time freight management.
Conclusion
The latest GRI from Roadrunner is a signal of the evolving logistics environment where cost management and strategic partnerships are more important than ever. At Gain Consulting, we're here to ensure that these changes work in your favor, keeping your supply chain both resilient and cost-efficient.
Stay tuned for more updates and insights as we continue to monitor the market dynamics in the U.S. shipping sector. If you have any questions or require personalized advice, do not hesitate to reach out to our team at Gain Consulting.
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