Georgia-based SMC³ has proposed a rate increase among its less-than-truckload members.

The company announced the proposed increase, with a cap of a 5.95%, at its publicly held meeting in Atlanta last week, with an anticipated effective date of Aug. 6. A second public meeting to review and consider the increase will be held June 20 in Orlando. In the interim, economic trends will be re-evaluated, including carriers' first quarter 2001 results, and interested parties will have the opportunity to analyze the proposal and comment on it.
During the May 16 meeting of SMC³'s General Rate Council, staff presented results of economic data collected from SMC³ member carriers, the LTL industry, and other data sources that are used in creating the Carrier Cost Index. The CCI was pioneered and developed by SMC³ and is the index that most accurately reflects the market basket of products and services consumed by the LTL transportation industry in their operations. The CCI provides the vehicle that quantifies the increased costs of operation and provides for an adequate yield on revenue allowing carriers to maintain their continued operations and attract capital. The CCI has been the standard utilized by the LTL carriers for a number of years.
"By continuing with our cost-based strategy, which satisfies both the carriers and shippers, we are able to genuinely respond to the pricing needs of the transportation community," stated Jack Middleton, president and CEO, SMC³. "Our carriers are experiencing unusually high insurance costs and escalating drivers' wages. SMC³'s strategy allows carriers to recoup these increasing labor expenses."
SMC³ is a leading nationwide provider of LTL transportation pricing, data and technology.