ABF, UPS Hike Rates by 6.9%

July 07, 2011

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Both ABF and UPS separately decided to raise shipping rates, averaging 6.9% for each company.

Other LTL carriers are expected to follow suit.

ABF will revise its general rates and charges for its freight division. Rates will increase by about 6.9%, although the effect on specific lanes and shipments will vary.

Customers will be able to view and download the new rates on by July 25th at the lastest by accessing

UPS Freight, the nation's fourth largest LTL carrier, announced a general rate increase averaging 6.9 percent covering non-contractual shipments in the United States, Canada and Mexico.

The rate adjustment takes effect on Aug. 1 and applies to minimum charge, LTL rates and accessorial charges. The impact may vary based on specific lanes or shipment characteristics, such as weight or class.

On Aug. 1, customers will be able to view and download the new rates at

"We expect others to follow, and the question will be how disciplined the carriers can be in keeping a firm stance in rate negotiations and how disciplined they will be in adding capacity," noted David Ross of Stifel Nicolaus Transportation & Logistics Research Group in an investor email. "We believe that a firm stance in pricing should lead to discipline with capacity additions."

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