Yellow Freight System announced last week that it plans to raise its rates nearly five percent next month. Other less-than-truckload carriers may do the same.

According to a Wall Street Journal report, the subsidiary of the Overland Park, Kan.-based Yellow Corp. will increase freight rates 4.9 percent effective August 1. The rate increase applies to non-contract shipments, which represent about half of Yellow’s business.
While some customers questioned the move in the face of a soft economy, August through November typically is the peak shipping season and rate increases during this time are not unusual.
Other LTL carriers, including Roadway Express and Consolidated Freightways, are also considering rate hikes. Analysts say the fleets need increased revenue to make up for declining freight volumes and rising costs in areas such as wage rates, health and welfare, and insurance.
The Southern Motor Carriers (SMC³) rate bureau and software provider has announced a 5.82% general rate increase, effective Aug. 6.
"Our carriers are facing escalating labor costs, specifically driver wages, fringe benefits and insurance premiums," said SMC³ President and CEO Jack Middleton.
Roadway said last week that May freight volumes were still down 13% from last year.
Bill Zollars, Yellow Corp.'s chairman, president and chief executive officer, told the WSJ that his company's freight volumes are running more than 10% below year-ago levels and noted that he hadn't seen a lot of improvement in the business volumes recently.