How to Make Peace and Prosper with Carrier General Rate Increases

General Rate Increases (GRIs) are a fact of life for shippers. Although they may seem arbitrary, unsubstantiated, or prone to bandwagon behavior, they serve a very important purpose.

They keep carriers financially stable so they in turn can keep shippers’ transportation stable.

GRIs are a standard practice carriers use to make sure their rates cover their changing costs. That helps keep them in business so you can keep promises to your buyers.

What are General Rate Increases in transportation

Less-than-truckload (LTL) General Rate Increases are typically announced in the final quarters of the year and go into effect in the months following. They are announced as percentage increases that will be added to carriers’ base rates.

This year Old Dominion Freight Line announced a 4.9% GRI, ABF Freight implemented a 5.9% GRI, Saia instituted a 5.9% GRI, and FedEx Freight released plans for a 5.9% GRI that will take effect January 5th, per Freightwaves.

LTL carriers tend to be consistent in their GRIs from year-to-year, in fact, the timing and amount of FedEx Freight’s 2026 GRI are the exact same as last year’s.

Carriers institute General Rate Increases for good reasons

Rising costs of operating a truck. “Ops costs” continue to rise.The marginal cost of operating a truck, excluding fuel, rose to its highest recorded level in 2024 to $1.779 per mile, according to the American Transportation Research Institute’s annual benchmarking report.

Inflation. The inflation Rate in the United States increased to 3% in September 2025. Although this is close to the 3.29% average for the U.S., inflation is persistent. Responsible carriers must keep current in order to remain competitive in hiring and maintain profit margins.

Increasing CapEx demands. Carriers face pressure replacing aging equipment today. The average age of class 8 tractors in 2024 was 12.3 years, and according to ACT Research, “Tariffs continue to increase new equipment prices materially.” The cost to build terminal and warehouse facilities required for expansion is also rising. Project costs for large warehouses rose 2% in 2025, according to Cushman & Wakefield. Technology is also a continuous drain on CapEx. It touches every link in the supply chain today and requires continuous updates. 

Market pressures and demand. Volumes in specific markets can shift dramatically. When volume exceeds a carrier’s capacity, a carrier will satisfy the demand by directing resources from elsewhere in the network. The impacts are networkwide and have a cost attached to them. GRI help offset these costs.

Know the strategies for mitigating GRIs

A General Rate Increase doesn’t have to derail your transportation budget if you understand how to respond strategically. By looking beyond the headline percentage and examining how GRIs affect your specific lanes, freight mix, and volumes, shippers can uncover meaningful opportunities to adjust. With the right analysis, technology, and carrier strategy, even a challenging GRI cycle can become a moment to strengthen cost control and improve long-term resilience.

Start by understanding the impact of GRIs on your transportation

Read the fine print. General Rate Increases don’t always affect every lane equally. Look closely at how your lanes, volumes and freight types will be impacted. You may not get hit across the board on every shipment. Know what shipments the increases will hit so you can focus your attention there.

Take the opportunity to analyze and optimize your program

A GRI provides a good occasion to reassess your transportation program and optimize it. You may be able to make some adjustments through packaging, rerouting, or mode choice that make the best of the situation. Fully understanding what you’re currently paying and what you will pay under a GRI enables you to compare options. With SONAR’s LTL pricing tool, introduced in 2024, it’s now possible to compare rates to a national LTL benchmark by freight class. It’s a helpful development for shippers looking for a reality check.

Lock in an advantageous contract

GRIs provide an opportunity to talk to carriers. That should include renegotiating with your existing carrier to lock-in rates that protect you from subsequent rate increases in the near future. Also consider an RFP. Gather the details of your current carrier’s GRI and all your current shipment data and see what other carriers are offering. Read WSI’s Guide for RFP Success.

Leverage technology to analyze and optimize costs

Technology provides definitive advantages when it comes to comparing options and making accurate decisions. With comprehensive data and a powerful TMS, shippers can gain a thorough understanding where rates are increasing at the lane level. That enables shippers to explore carrier options and zero-in on renegotiating the lanes that are most impacted. Success starts with your quality data for:

• Origin and destination zip codes
• Freight classifications and weight tiers
• Average cost per hundredweight (CWT)

The 3PL freight broker advantage in GRIs

Technology and expertise in problem-solving General Rate Increases are table stakes for a leading 3PL freight broker. WSI’s TMS makes short work of understanding GRI impacts, optimizing shipments, and benchmarking them against rates for any lane from our many LTL customers.

Bulk contracts and bargaining power with LTL carriers are another advantage provided by a leading 3PL freight broker. An example of this is that WSI negotiates large contracts with the biggest LTL carriers for much lower rates than most shippers could secure by themselves.

The reality is that general rate increases generally aren’t as bad for WSI customers. Talk to our team about your best options for LTL and lock in a future that relieves you from GSI worries going forward.