OnTrac to hike 2024 published rates by 6.2%

Super-regional parcel delivery carrier OnTrac will raise its 2024 tariff rates by a blended average of 6.2%, with shorter-haul traffic being charged less than longer hauls.

Rates on parcels moving 600 miles or less will increase, on average, by 5.9%. For shipments moving 600 miles or more, a 6.4% rate increase will apply. The new rates take effect Jan. 1.

As it has in the past, Chandler, Arizona-based OnTrac will significantly discount the published rates in its contracts with enterprise customers. It handles almost exclusively business-to-consumer traffic.

The current OnTrac is the product of an integration between the original OnTrac, which serves eight Western states as far east as Colorado, including all of California, and LaserShip, which blankets much of the East Coast and mid-Atlantic and extends as far west as Arkansas. The current company provides coast-to-coast deliveries to 31 states and the District of Columbia.

The integrated entity added Texas to its network earlier this year. It plans to expand next into the Chicagoland market, although there is no publicly announced timetable for the move.

In addition, OnTrac said that it will adjust its diesel fuel surcharge levels on a weekly basis instead of monthly. The move brings the carrier in line with the policies of national carriers FedEx Corp. (NYSE: FDX) and UPS Inc. (NYSE: UPS). Surcharges are set, and adjusted, based on the weekly nationwide on-highway diesel price set by the Department of Energy’s Energy Information Administration (EIA). The adjustments occur with a one-week lag from changes in the EIA prices.

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Source: freightwaves - OnTrac to hike 2024 published rates by 6.2%
Editor: Mark Solomon