Forward Air (NASDAQ: FWRD) announced Monday a 6% general rate increase on all shipments “to offset rising operating costs.”
The Greeneville, Tennessee-based expedited trucking company said the increased rates took effect Monday and will include its less-than-truckload service. The company also announced changes to its accessorial and surcharge schedule.
“The rate changes enable Forward to continue investing in service enhancement as operating costs continue to rise in the freight transportation industry. As an expedited carrier, Forward operates on-demand without the long lead times that traditional carriers require,” a news release stated.
On the company’s third-quarter earnings call, management noted an increase in the use of brokered services, which resulted in a 440-basis-point increase in purchased transportation expenses. Tight truck capacity and rising spot rates, in part due to surging container volumes on the West Coast, were cited as the reasons for the jump in third-party transportation costs.
“Forward remains committed to providing best-in-class, premium expedited service to its customers,” the release concluded.