105 – How to Predict & Analyze the Impact of Carrier Rate Increases


September 20, 2017 8:00 am - 8:50 am

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2018 Rate Impact

Like death and taxes, most shippers know that the carriers will implement a General Rate Increase (GRI) in 2018. While there are many components to these rate and tariff changes, we will focus on the impact the GRIs have on your net shipping rates and charges. Typically, the carriers announce their annual GRI by saying that they are raising their rates by an “average” percentage. However, when looking at how the higher rates impact you, you will realize that the rate increases differ by zones, weights, service levels and minimum shipment charges. In this session, we will show you examples of how past GRIs have effected different shippers over the last few years. We will also show examples of how a GRI cap can benefit you and keep your year-over-year increases contained. Finally, we will show you how to calculate the actual or predicted 2018 GRI and what steps you need to take to quantify the cost to your organization.

LEARNING OBJECTIVES

  • Understand the historical impact of the General Rate Increase and key differences between announced GRIs and actual increases
  • How to calculate the year-over-year cost
  • Why Zone 2, 1 lb. Minimum Shipment Charge is critical to look at
  • Benefit of having a GRI Cap in your agreement
  • Better forecast the increased costs for 2018
Tim Sailor
Stephanie Laverty