Con-Way to Roll Insurance Cost into Rate

The surcharge was to go into effect Jan. 1, 2004. On Nov. 24, 2003, the regional less-than-truckload carrier said it had withdrawn the proposed application for the 2% surcharge. Shippers, Con-Way said, preferred that Con-Way include the insurance costs in the general rate increase.

"Health insurance costs are now at crisis proportions," said Gerald L. Detter, president and CEO of Con-Way Transportation Services, prompting the regional less-than-truckload carrier to announce its intention to institute a 2% insurance surcharge beginning Jan. 1, 2004.

Just 10 days after making that announcement, Con-Way retracted the surcharge saying shippers had responded that they preferred the insurance expense be included in the more traditional method of a general rate increase. Con-Way said it would follow this more traditional route, though it did not announce a date for a general rate increase.

The original surcharge was scheduled to apply to the net (after linehaul) charges. In its earlier announcement, Con-Way said the surcharge would affect Con-Way Central Express, Con-Way Southern Express, Con-Way Western Express and Con-Way Canada Express. The company offered no indication of how it would apply a future general rate increase. Con-Way companies not included in the original in the surcharge announcement include, Con-Way operates Con-Way Mexico Express, Con-Way NOW, Con-Way Logistics, Con-Way Air and Con-Way Full Load.

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