LTL General Rate Increases (GRI's)

LTL carriers typically make modifications to their base rates yearly through the form of a General Rate Increase (GRI). Historically speaking, these increases occur once a year, but there have been years where there were none passed along and there have been years where there have been more than one. These increases are given with multiple factors taken into account, including but not limited to the economy and the carrier’s network and current operating ratio.


An important thing to remember with GRI’s is that the announced increase reflects only the average rate increase across all lanes combined. It’s a weighted average. It isn’t necessarily indicative of the true impact the GRI will have on a shipper’s total freight costs since it’s not a flat percent increase across the board. And yes, this can work both ways for individual lanes. The impact may be less than what’s announced in some lanes, and it may be a lot higher in others. The takeaway here is that a shipper could be seriously impacted by an effective rate increase much higher than what’s announced by the carrier, so it’s imperative for shippers to check each lane for actual impact on costs. This can be a daunting task for a larger shipper. 

Contact me to find out how you can protect your business from these open market increases or get help with determining the impact of any already taken GRI. 

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