What can I do if my LTL carrier has a sharp rate increase?
Submitted by root on Mon, 2012/01/23 - 11:01am
What can a company do if their LTL carrier is hiking their rates out of budget? The short answer is "find another carrier". The problem with that is that not all carriers treat their customers the same and loyalty can count for something. In the current economic climate many companies are forced to make changes and LTL trucking companies are no different. The problem is that if a customer has been with an LTL shipping company for a long time, they expect more favorable rates despite economics. When the rates come in though, they may hesitate to switch to another shipping company even after threatening to leave. Ultimately if the cost is such an enormous factor then the shipping company will lose a loyal customer. This is where many LTL companies are starting to change. The smart ones are trying to come up with better ways of handling their lighter trade lanes. If your business is not always shipping in a popular trade lane for your LTL carrier, maybe you can work together to increase profit margins for both sides instead of accepting general rate increases. If your LTL shipping company is unwilling to work together to accommodate both sides you may need to move on. Getting to know how the processes work in a company and building trust in a new carrier can be a difficult task, but much like starting any new relationship, the beginning can be a big transition. In the end though, if you cannot work together with your current carrier towards a common goal, you may be more satisfied elsewhere.
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