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Ltl Freight Rates To Possibly Soar

August 7th, 2007 by Howard Skolnik

Filed under: Industry News

Since 2006, the National Motor Freight Transportation Association (NMFTA) has been investigating the overhaul of charges for empty packagings that are shipped LTL (Less-Than-Truckload). The trend of reducing wall thicknesses of steel, plastic and paper packagings resulted in lighter-weight containers. Currently, the rates for these packagings are based on the weight of the empty packaging and the NMFTA claims that as a result, carriers have lost revenues. The NMFTA is proposing to revise their fee schedule to base the rates on volume, rather than weight. The initial estimates for like packagings indicate that the cost for an LTL shipment could double. NMFTA was temporarily setback when a lawsuit was brought against them for anti-trust violation. However, we believe that a restructuring will occur in the next year, and we are ready to work with you to research your best rate options.

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