With General Rate Increase (GRI) season in full swing, Less-than-Truckload (LTL) shippers are once again navigating the challenge of managing rising transportation costs. GRIs, which carriers typically announce once per year, can significantly affect your freight spend if not proactively addressed.
In this post, we’ll explain why GRIs happen, how they affect your business, and most importantly, how you can reduce their impact using data, smart negotiation, and technology.
At a high level, GRIs are driven by a combination of macroeconomic factors, operational costs, and strategic shifts in carrier networks. Some of the most influential factors include:
Important: Fuel surcharges are not included in GRIs. They fluctuate weekly and are pegged to the DOE fuel index, making them a separate variable cost.
GRIs affect different shippers in different ways. While your contract might state a fixed discount, that discount is applied to the carrier’s base rate, which typically updates annually. When that base rate changes, so does your per-hundredweight (CWT) cost—even if your discount remains unchanged.
What’s more, your impact will depend on:
A 6% GRI in the news might translate into a 3% increase for your outbound East Coast freight—or a 12% spike for certain inbound Western markets. In some rare cases, you might even see a rate decrease.
Understanding your own data is the most powerful tool you have. Track:
Analyze your per-CWT trends before and after a GRI takes effect. If you're using a TMS like MyCarrier, advanced analytics tools make this process far easier, faster, and more accurate than manual Excel reporting.
Example: If your average CWT to Texas jumped from $9.80 to $10.85 after the GRI, that’s a 10.7% increase - well above the stated GRI average and worth investigating or renegotiating.
A powerful TMS with comprehensive data and reporting can break down rate changes by origin-destination pairs, showing which lanes saw the biggest swings. You can:
By understanding where your rates are increasing, you can explore carrier alternatives or renegotiate contracts in those high-impact lanes.
FAKs are tempting because they simplify billing and quoting by averaging out freight classes. But using FAKs broadly can backfire:
Instead, consider investing in systems and tools that help you quote actual classes more accurately. This transparency builds trust with carriers and often leads to better pricing.
Each carrier's GRI reflects their network cost structure, not a universal standard. Build strong partnerships with carriers who:
Tip 1: Regional carriers may offer better pricing and service for specific routes compared to national carriers, especially if they’ve recently added terminal capacity in your area.
Tip 2: Digitally connect with your chosen carriers and communicate often. This enhances trusted partnerships and creates better shipping outcomes with more negotiating power.
A powerful TMS gives you the tools to monitor real-time rates, spot trends, and respond quickly to cost increases. Key features include:
With platforms like MyCarrier, even small shippers can access enterprise-grade intelligence to forecast and react before GRIs take a bite out of margins.
GRIs are inevitable - but rate surprises don’t have to be.
By understanding the true mechanics behind GRIs and embracing a data-driven approach, LTL shippers can insulate themselves from excessive increases, identify new savings, and future-proof their transportation budgets.
Key Takeaways
✅ GRIs are driven by fixed infrastructure, rising costs, and network imbalance
✅ Not all GRIs are equal - impacts vary by lane, weight, and class
✅ Analyze your own CWT trends to understand your real exposure
✅ Be careful with FAKs - they often lead to higher base pricing
✅ Use a direct-to-carrier shipping platform to gather data to stay agile and competitive
Want to assess how this year's GRI affects your freight spend?
Let MyCarrier help you run a personalized analysis and uncover ways to cut costs while improving service. Book a quick demo below.