ArcBest began a 5.9% general rate increase for its less-than-truckload services on Monday.
The pricing uptick — previously done in November, October or September in recent years — has now shifted to August. Chief Commercial Officer Eddie Sorg said that’s typical and reflects an average cycle of 10 to 11 months.
“Ultimately, it's because we're providing the value to our customers that we believe they're willing to pay for that,” Sorg said on a Q2 earnings call last week.
He added that rising, inflationary costs required the increases.
Approximately 20% of ArcBest’s asset-based business was subject to GRIs on less-than-truckload rates in 2024, according to its annual report.
This year, that volume hasn’t been as high as it was in previous years, too, Sorg said on the call. “So we don't think the impact will be overly great,” he said.
Besides GRI-related business, additional transactions involve annually negotiated rates, the spot market and other deals throughout the year.
