Saia leads LTL field with an ‘on average’ general rate increase of 7.5%
Saia, the nation’s ninth-largest less-than-truckload (LTL) carrier, recently announced it is implementing a general rate increase (GRI) on LTL and truckload shipments, effective Dec. 4, 2023.
The increase will cost shippers “on average” around 7.5%, Saia said. It also said selected accessorial charges and minimum charges will be impacted. Updated Saia 5700 rates and the Saia 170D rules tariff are available at saia.com.
“Over the past several years, we have invested heavily in taking care of the customer as they are at the center of everything we do, which is exemplified by our ‘Customer First’ core value, Saia Vice President of Finance Matthew Batteh said in a statement. “By continuously investing in our network, employees, equipment, technology and sustainability, we are able to provide customers with the industry-leading service they require. A GRI allows us to partially offset the rising costs of these expenditures as well as other investments that are essential to providing service to our customers.”
Saia’s GRI will affect each customer differently based on a mix of business, volume and location.
Saia’s announcement is the first of what is expected to be similar moves by rival LTL carriers. Since the closure of Yellow Corp. in early August, about $5 billion in capacity has exited the LTL market.
UPS recently announced it would raise listed rates by a 5.9% average hike for its ground, air and international services on Dec. 26. Of course, these are listed rate increases. Shippers’ actual rates are dependent on numerous factors, including amount of freight, location, accessorial and additional services, among other issues.
That followed an August announcement that FedEx Freight and FedEx Ground would raise rates on Jan. 1. FedEx Freight rates will rise between 5.9 and 6.9%, it said, “dependent on the customer’s transportation rate scale.”
Since January, Saia has opened eight new terminals, including what it calls a state-of-the-art facility in northeast Atlanta. Saia also has relocated several existing terminals, including Salt Lake City, to larger, better-situated properties. Saia LTL Freight operates 193 terminals across the country and employs over 13,000 people.
“By making these investments, we continue to position ourselves for growth so we can better serve our customers’ supply chain needs. It is always our goal to provide the overall best on-time and claims-free service in the industry,” Batteh said. “We are constantly exploring ways to improve our service while working to balance customer demand with the costs of doing business.”
