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rate increase for con-way customers

Date: October 11, 2010
Re Subject: Con-way Freight General Rate Increase


Con-way Freight will increase the rates in its base tariff, CNWY-599. The increase will be effective Monday, November 1, 2010. The average weighted impact of the rate increase will be 6.5%. The rates in the Con-way Freight Rules Tariff, CNWY-199, will remains the same. No increase.

It is important that all Con-way Freight account executives, corporate account executives and national account executives review their accounts immediately and determine those using the current version of the Con-way Freight Tariff CNWY-599 in their pricing agreement. These are the customers who will be immediately affected by the increase on November 1st. Communicate this rate change to those customers during the month of October.

The reason for our increase:

 The LTL industry is operating at a loss
 Con-way Freight costs have risen faster than price (Or, if you know your customer's price has
decreased, prices have decreased while costs have increased).
 Government regulations continues to add cost
 Con-way Freight’s profitability is too low to recapitalize our fleet
 This price increase will ensure that we can provide the level of service that our customers expect
 To include supporting highly trained uniformed drivers, improving safety, SafeStack that eliminates damage and hand held computers for drivers that improve customer information.

ExpressRate will be available no later than mid November for those customers that use. The rate quote screen will be uploaded with the GRI Monday, October 25, 2010.

IMPORTANT: Customers who are on CNWY – 599 who were selected for Wave 1, 2 or 3 increases will not be affected by this general increase.
 

Wreckerman

New Member
How interesting! On September 27, 2010, in response to ABF announcing their 5.9% increase, Conway spokesman Tom Nightingale was quoted in Journal of Commerce (Trade News | Shipping Logistics | Journal of Commerce) saying "Conway would NOT implement an 'out-of-cycle' GRI this fall." He went on to say "The reality is, the market still has overcapacity, not as much as it has had in recent past, but there still is overcapacity. We are selectively evaluating customers in areas we have have a tightening of capacity and dealing with those customers on a one-on-one basis." Then two weeks later a 180 degree reversal! One would think that a public company of this size and stature (and that has a very high LTL OR, so they really could use a rate increase to shore up their profitability) would have their ducks in a row before making such a bone-head move!
 

Rat

Well-Known Member
How interesting! On September 27, 2010, in response to ABF announcing their 5.9% increase, Conway spokesman Tom Nightingale was quoted in Journal of Commerce (Trade News | Shipping Logistics | Journal of Commerce) saying "Conway would NOT implement an 'out-of-cycle' GRI this fall." He went on to say "The reality is, the market still has overcapacity, not as much as it has had in recent past, but there still is overcapacity. We are selectively evaluating customers in areas we have have a tightening of capacity and dealing with those customers on a one-on-one basis." Then two weeks later a 180 degree reversal! One would think that a public company of this size and stature (and that has a very high LTL OR, so they really could use a rate increase to shore up their profitability) would have their ducks in a row before making such a bone-head move!

They had no choice other than to take an increase.

YRC & Vitran are taking a 5.9% increase.

Con-Way and FedEx Freight are taking a 6.5% increase...Others will follow.

If Con-Way doesn't take an increae they will be right back in the same boat they had worked to get out of...hauling more freight than capacity allows...increased claims...service failures.

Before John L. left he said the company was making definitive moves to reduce volumes so as to eliminate the shortages of available equipment being experienced at that time. He said they were evaluating rates on a customer by customer basis and adjusting accordingly.

If Con-Way did not take a GRI at this time as many have...they would be back to square one!

Smart move!

Rat
 

Dodge Ram

Well-Known Member
How interesting! On September 27, 2010, in response to ABF announcing their 5.9% increase, Conway spokesman Tom Nightingale was quoted in Journal of Commerce (Trade News | Shipping Logistics | Journal of Commerce) saying "Conway would NOT implement an 'out-of-cycle' GRI this fall." He went on to say "The reality is, the market still has overcapacity, not as much as it has had in recent past, but there still is overcapacity. We are selectively evaluating customers in areas we have have a tightening of capacity and dealing with those customers on a one-on-one basis." Then two weeks later a 180 degree reversal! One would think that a public company of this size and stature (and that has a very high LTL OR, so they really could use a rate increase to shore up their profitability) would have their ducks in a row before making such a bone-head move!

Con-Way is always talking out of both sides of their face.
 

rattlehead

he said member uh huh huh
They had no choice other than to take an increase.

YRC & Vitran are taking a 5.9% increase.

Con-Way and FedEx Freight are taking a 6.5% increase...Others will follow.

If Con-Way doesn't take an increae they will be right back in the same boat they had worked to get out of...hauling more freight than capacity allows...increased claims...service failures.

Before John L. left he said the company was making definitive moves to reduce volumes so as to eliminate the shortages of available equipment being experienced at that time. He said they were evaluating rates on a customer by customer basis and adjusting accordingly.

If Con-Way did not take a GRI at this time as many have...they would be back to square one!

Smart move!

Rat

Dude, I really enjoy Rat's posts, but I don't believe I have ever seen him say "smart move" and not be sarcastic when it comes to management decisions.:kickedoutsmile:
 

TiredDvrsWife

Well-Known Member
Did hell freeze over?? Tail caught in a trap?? MEDIC!! :Omg_I_gets_present_


They had no choice other than to take an increase.

YRC & Vitran are taking a 5.9% increase.

Con-Way and FedEx Freight are taking a 6.5% increase...Others will follow.

If Con-Way doesn't take an increae they will be right back in the same boat they had worked to get out of...hauling more freight than capacity allows...increased claims...service failures.

Before John L. left he said the company was making definitive moves to reduce volumes so as to eliminate the shortages of available equipment being experienced at that time. He said they were evaluating rates on a customer by customer basis and adjusting accordingly.

If Con-Way did not take a GRI at this time as many have...they would be back to square one!

Smart move!

Rat
 

Mechanic1

Member
They had no choice other than to take an increase.

Before John L. left he said the company was making definitive moves to reduce volumes so as to eliminate the shortages of available equipment being experienced at that time. He said they were evaluating rates on a customer by customer basis and adjusting accordingly.
Rat

We heard the opposite at our "town hall" meeting. They said that John L's business model was to slash prices and make up for it in volume. If that's true, I'm glad he's gone, took them too long to realize that it wasn't working. I'd much rather see less freight for more money, we were turning into the Walmart of LTL.
 
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