SMC3, a nationwide provider of Technology Tools for Transportation, says its General Rate Committee (GRC) has approved an overall rate increase of 6.1%, to become effective on Aug. 1, 2003.
At its May 21, 2003, GRC meeting, SMC3 presented the results of specific economic data collected from its carrier members, the LTL industry and other data sources used in developing its Carrier Cost Index (CCI). SMC3 then held a public GRC hearing, attended by carriers, shippers and other members of the transportation community, earlier this month in Florida.
"LTL carriers are still dealing with soft demand during a period of increasing outlays for government-mandated security and new regulations on diesel engine emissions," said Jack E. Middleton, president and CEO of SMC3. "Additionally, carriers with excellent safety ratings and extremely low loss and damage claims are facing significant insurance premium increases."
SMC3's rate increases have created confidence on the part of shippers and carriers in the organization's pricing responses to general rate increase needs. Participation in the GRC, which determines the annual General Rate Increase (GRI), has more than doubled over the last four years, demonstrating a solid carrier interest in the process.
SMC3 pioneered and developed the CCI in 1999 to more accurately quantify the increased labor, labor-related and non-labor expenses in a carrier's operations. This assists carrier efforts to obtain adequate revenue, thereby enabling the carrier to continue operations and attract capital.
"Transportation is a critical part of our economy, and the LTL carrier industry is extremely competitive, operating on razor-thin margins," said Middleton. "These carriers face the same purchasing pressures for labor, equipment and supplies as other companies in the marketplace, and must adjust their prices, like any other business, to continue current service levels. "
SMC3 serves about 770 carrier and shipper members, as well as more than 5,000 customers throughout the contiguous United States.
For an executive summary on the general rate increase or for more information about SMC3, visit www.smc3.com, or call (800) 845-8090.
At its May 21, 2003, GRC meeting, SMC3 presented the results of specific economic data collected from its carrier members, the LTL industry and other data sources used in developing its Carrier Cost Index (CCI). SMC3 then held a public GRC hearing, attended by carriers, shippers and other members of the transportation community, earlier this month in Florida.
"LTL carriers are still dealing with soft demand during a period of increasing outlays for government-mandated security and new regulations on diesel engine emissions," said Jack E. Middleton, president and CEO of SMC3. "Additionally, carriers with excellent safety ratings and extremely low loss and damage claims are facing significant insurance premium increases."
SMC3's rate increases have created confidence on the part of shippers and carriers in the organization's pricing responses to general rate increase needs. Participation in the GRC, which determines the annual General Rate Increase (GRI), has more than doubled over the last four years, demonstrating a solid carrier interest in the process.
SMC3 pioneered and developed the CCI in 1999 to more accurately quantify the increased labor, labor-related and non-labor expenses in a carrier's operations. This assists carrier efforts to obtain adequate revenue, thereby enabling the carrier to continue operations and attract capital.
"Transportation is a critical part of our economy, and the LTL carrier industry is extremely competitive, operating on razor-thin margins," said Middleton. "These carriers face the same purchasing pressures for labor, equipment and supplies as other companies in the marketplace, and must adjust their prices, like any other business, to continue current service levels. "
SMC3 serves about 770 carrier and shipper members, as well as more than 5,000 customers throughout the contiguous United States.
For an executive summary on the general rate increase or for more information about SMC3, visit www.smc3.com, or call (800) 845-8090.
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