SMC3's General Rate Committee (GRC) has approved an overall rate increase of 3.25% for lessthantruckload (LTL) carriers, to become effective on April 3. SMC3 is a provider of data, technology and education to the freight transportation community.
The GRC cites increased operating costs driven by insurance premiums, driver recruitment and security requirements as key factors attributing to the need for a rate increase. Other factors include the escalating costs of facility and equipment purchases and/or rentals, as well as the operational disruptions caused by last year's severe hurricane season. While fuel costs continue to be a burden to carriers, these costs were not included as part of the general rate increase discussion because fuel is addressed separately in a surcharge.
The integral factor in formulating the annual rate increase is SMC3's Carrier Cost Index, which reflects the products and services consumed by LTL carriers in their operations. The index quantifies the increased labor, labor-related and non-labor expenses in a carrier's operations. The intent is to assist carrier efforts to obtain adequate revenue, thereby enabling the carrier to continue operations, attract capital and serve the shipping community.