Hopefully this is a good omen, but here we are, just a few weeks into January and we actually have some good news for shippers!
The union (ILA) and USMX have come to an agreement over work rules so there won’t be a strike at the East Coast ports tomorrow. A lot of people were on edge about whether or not this would happen, but we are pleased to say that since the ILA and USMX have worked things out, you can rest a bit easier.
And that brings us to our second update: Upcoming pricing changes in the LTL sector.
Last week, along with CSCMP and the NIT League, we hosted a webcast that drew RAVE reviews from the hundreds of folks who attended and learned more about how the changes in the NMFC would affect LTL shippers. You need to know that these changes are some of the most significant adjustments in LTL pricing since deregulation. If you choose to ignore or fail to understand how these changes could affect your LTL freight budgets, your company will likely be in for a surprise.
I heard from several attendees who told me they had no idea what is heading their way when the NMFTA changes the NMFC platform in July. Our panel of resources crushed it and helped shippers understand how to do some very important things that can actually help them lower their LTL costs.
But there is a catch: You actually have to do some stuff or your LTL costs could easily go up by as much as 10%-15% in 2025 and 2026. That is because in July the NMFTA will be changing around 2500 categories of products and creating “subcategories” that could bump up the rates of products of yours based on the density and “pounds per cubic foot” data. It is estimated that these 2500 categories affect about 70% of the LTL freight that is tendered to LTL carriers.
How much will your LTL costs increase? Nobody knows for sure, but you could pretty much count on it being greater than the typical general rate increases.
Since this is a Two Minute Warning, we have to keep things short, so here are some quick tips. First, to listen to the webinar recording. Then share it with your team. Second, plan ahead so you don’t get surprised and have to explain to the “higher ups” why your budget has been blown. Then third, and most importantly reach out to your friends here at TranzAct and let’s discuss how a LTL Strategic Assessment can produce great results for your company.
In the “more good news category” the LTL Strategic Assessment identifies the things you can in fact do to mitigate the impact of these changes and strategies and actually lower your LTL costs. And we guarantee the results!
Just simply send me an email and just ask: Can you share some important information with me about TranzAct’s strategic LTL assessment? We’ve been working with LTL shippers and carriers for decades and have the ability to help you better position yourself for the LTL pricing changes ahead.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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