Excerpt from: North America Supply Chain and Logistics Strategy
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| February 01, 2008 | | Old Dominion, following UPS Freight and FedEx Freight, announced a 5.4 percent on average increase in their rates. | Old Dominion announced that it will be raising its LTL base rates on February 11 by an average of 5.4 percent. This is greater than the 5.1 percent increase they passed to the customers in 2007. This increase is inline with the UPS-Freight and FedEx Freight increases that were issued in December and January. According to an article in Logistics Management, negotiated transportation rates decreased for both LTL and TL in 2007. It is believed that the rates would remain the same for 2008 or possibly decrease. However; the fuel surcharge continues to rise and should be considered when looking at the rates. How will the increases affect your transportation spend? Benchmarking your current rates and assessing your contract will help you to determine if you are ready for the increases. Negotiating the contract for long term with published rate increase in mind will alleviate any high increases. | | |
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