Our carrier just raised rates. What should we do?
Key Takeaways
- A rate increase notice is the start of a conversation, not a final bill. Most carriers expect questions, and many leave room to adjust on lanes that matter to them.
- Separate a general rate increase from a lane-specific increase. A general increase applies across the carrier's pricing. A lane increase targets specific origins, destinations or freight types, and usually has a specific reason.
- Find out exactly what changed: base rates, discounts, minimum charges, the fuel surcharge table or the accessorial schedule. Each one hits your freight differently.
- Measure the impact on your own shipments by re-rating recent loads under the new pricing. The headline number and your actual cost increase are rarely the same.
- Quote the affected lanes with other approved carriers before you decide. A real alternative is the strongest position in any negotiation, and it tells you whether the new rate is simply the market.
- Wilson, by Cartage, is an AI logistics agent that requests quotes from a company's approved carriers, compares them on total cost and negotiates toward the company's rate targets within approval limits.
Should you accept a carrier's rate increase?
A letter arrives from the LTL carrier that handles most of your outbound freight. New pricing takes effect in 30 days. The letter mentions "rising operating costs" and attaches a revised rules tariff. Your plant manager wants to know what it will cost. Finance wants a number for next quarter. And the carrier rep is asking for a quick sign-off so the new rates can load into their system.
You should not accept or reject a carrier rate increase until you know what changed, what it costs on your actual freight and what your other approved carriers would charge for the same lanes. Sometimes the increase is fair and in line with the market. Sometimes it is a starting position the carrier expects to adjust. And sometimes it is a sign that your freight no longer fits the carrier's network, and the lane would be better served elsewhere.
The goal is not to fight every increase. Carriers face real cost pressure from labor, equipment, insurance and fuel, and a carrier that loses money on your freight will eventually stop answering when you need a truck. The goal is to pay a rate that reflects the market and the value of the service, and to make that decision with numbers rather than with a deadline.
General rate increases vs lane-specific increases
There are two broad kinds of increase, and they call for different responses.
A general rate increase (often called a GRI) applies across a carrier's pricing. LTL carriers often announce one each year, raising their base tariff. If your agreement gives you a discount off that tariff, your net rates rise even though your discount percentage didn't change. Truckload carriers and parcel carriers announce their own versions. A general increase is usually not about your freight specifically. It is about the carrier's overall costs and pricing strategy.
A lane-specific increase targets particular origins, destinations, regions or types of freight. A carrier might raise rates on deliveries into a congested metro area, on freight from a pickup point where drivers wait too long, or on a lane where its trucks come back empty. Lane increases usually have a reason the carrier can explain, and that reason tells you what might bring the rate back down.
Many notices contain both: a general increase plus a few lane changes. Treat each part separately.
Why carriers raise rates
Understanding the reason helps you respond. Common reasons include:
- Higher costs: driver wages, equipment, maintenance, insurance and terminal costs.
- Network balance: the carrier has too much freight going one way and not enough coming back.
- Service cost at specific sites: long wait times, tight appointments, limited access or frequent redeliveries.
- Freight profile: the carrier finds your freight is lighter, bulkier or harder to handle than the pricing assumed.
- Market conditions: when capacity tightens across the industry, carriers reprice to match.
If the carrier says the increase is about costs at a specific receiver, you have options that have nothing to do with price, such as fixing dock times. If it is about the market, your other approved carriers will probably be moving the same way.
What not to do
Don't sign the new rates on the spot because the rep asked for a quick answer. Don't move all the freight away in frustration before checking alternatives. And don't ignore the notice: if you keep tendering after the effective date, you will usually be billed at the new rates whether you agreed or not.
How do you check what actually changed?
Get the new pricing in writing, break it into its parts and compare each part with what you pay today. A notice that says rates are going up "an average of X" tells you very little about your bill.
Step 1: Ask for the complete new pricing
Ask the carrier for the full revised pricing, not a summary. That means the new base rates or tariff, your discount and any changes to it, minimum charges, the fuel surcharge table, the accessorial schedule and the effective date. If the carrier quotes truckload rates by lane, ask for the full lane list with old and new rates side by side.
Step 2: Break it into components
A carrier rate is built from several parts. An increase can come from any of them, and some are easy to miss.
| Component | What can change | How to spot it | Why it matters |
|---|---|---|---|
| Base rate or tariff | The underlying rate table moves up | Compare old and new rates for the same lane and weight | Affects every shipment on the tariff |
| Discount | The discount off the tariff shrinks | Check the discount percentage in the agreement | A smaller discount raises net cost even if the tariff is flat |
| Minimum charge | The lowest charge per shipment rises | Look for an "absolute minimum" or floor | Hits small, light shipments hardest |
| Fuel surcharge table | A new table, or a new base price for the table | Compare the surcharge at the same diesel price | Changes cost on every load, often unnoticed |
| Accessorial schedule | Liftgate, residential, appointment and other fees rise | Compare the old and new rules tariff line by line | Hits lanes and customers that need those services |
| Freight class or density rules | New rules on how freight is rated | Read the rules tariff changes | Can push freight into higher classes |
| Lane rates (truckload) | Specific lanes are repriced | Old vs new rate per lane | Usually targeted, often negotiable |
Step 3: Check the effective date and terms
Note when the new rates start and whether your agreement requires notice before changes. Some agreements set rates for a fixed term or require a notice period. If the carrier's notice doesn't follow the agreement, raise it. If you don't have a written agreement, the carrier's published terms usually apply, which is one more reason to put rate-change terms in a written carrier agreement.
Step 4: Re-rate your recent shipments
This is the step that turns a vague notice into a real number. Take a recent period of shipments with this carrier, often the last three or six months, and price each one under both the old and new pricing. Include the base rate, fuel at the same diesel price and the accessorials that actually applied.
The total difference is your real cost increase. It is often different from the carrier's headline number, because your freight is not the carrier's average freight. If most of your shipments are small, a higher minimum charge may matter more than the tariff increase. If most of your deliveries need a liftgate, the accessorial change may be the biggest piece.
Step 5: Find where the increase lands
Sort the re-rated shipments by lane, customer and shipment size. Usually a few lanes or a few customers carry most of the increase. Those are the lanes to quote and negotiate. The rest may not be worth the effort.
An example: one notice, three different impacts
Consider a hypothetical distributor that ships about 400 LTL shipments a month with one carrier. The notice says base rates are increasing. When the logistics team re-rates three months of shipments, they find:
- The tariff change adds about $3,100 a month across all lanes.
- A higher absolute minimum adds another $1,400 a month, almost all on small shipments to two customers.
- A new liftgate price adds $900 a month, mostly on deliveries to one retail customer.
So the real increase is about $5,400 a month, and more than 40% of it comes from two items that the headline notice barely mentioned. That changes the response. The team can negotiate the minimum charge, quote the small-shipment lanes with another approved carrier, and talk to the retail customer about deliveries to a dock.
How do you test the increase and negotiate with the carrier?
Ask your other approved carriers to quote the affected lanes with the same shipment details, then compare total cost and service, not just the base rate. This tells you two things: whether the increase reflects the market, and whether you have a real alternative.
Quote with real shipment data
Use the shipments you re-rated as the basis for the quote request. Give each carrier the lanes, typical weights, dimensions, freight class, monthly volume, pickup and delivery requirements and the accessorials that usually apply. A carrier quoting from accurate data gives you a number you can rely on. A carrier quoting from a vague request gives you a number that will change on the first invoice.
Keep the request to carriers you have already approved. A new carrier you haven't checked is not an alternative yet. If you need to add one, go through your normal approval process first. For how to check a carrier before its first load, see checking a new carrier before first use.
Compare on total cost
A lower base rate can hide higher accessorials, a different fuel table or a higher minimum. Compare the total cost each carrier would have charged on your actual recent shipments, including fuel and accessorials. That is the same re-rating exercise you did for your current carrier, applied to each alternative.
Compare on service
Price is not the only factor. Look at on-time pickup, on-time delivery, damage, how quickly the carrier answers, how often invoices need correcting and whether it covers every point on the lane. A carrier that is $40 cheaper per shipment but misses pickups will cost more in expedites and customer complaints.
Decide what to do with each lane
The comparison usually sorts lanes into three groups:
- Lanes where the current carrier is still competitive: accept the new rate, or negotiate a smaller change.
- Lanes where an alternative is clearly better: negotiate with the current carrier using the quote, or move the lane.
- Lanes where every carrier went up: the increase reflects the market. Accept it and update the budget.
This lane-by-lane approach is also the basis of a formal bid. If many lanes are affected, a structured process may be better. See how to run a freight bid for your lanes.
How do you negotiate the increase?
Negotiate with specific numbers, specific lanes and specific things you can offer, and be ready to move freight if the numbers don't work. Carriers respond to data and to freight they want to keep.
Lead with your numbers
Share the re-rated impact on your freight, the lanes that carry most of the increase and, if you choose, the fact that you have competitive quotes. You don't need to share another carrier's name or exact rate. Saying "we have quotes on these four lanes that come in well below the new pricing" is usually enough to start a real conversation.
Ask about the components
Instead of arguing about the headline, ask about each part. Can the discount stay where it was? Can the minimum charge stay the same for your account? Can liftgate be priced into the base rate for one customer? Can the effective date move to the start of next quarter so the budget can absorb it? Carriers often have more flexibility on individual components than on the general increase itself.
Offer something in return
Carriers value freight that is easy to handle and predictable. Things you can offer include:
- Volume commitments on lanes the carrier wants.
- Better freight data: accurate weights, dimensions and classes, so fewer corrections are needed.
- Better dock behavior: faster loading, reliable appointment times, freight ready when the truck arrives.
- Consistent tendering: steady weekly volume instead of spikes.
- Longer rate terms: a fixed rate for a defined period.
If the carrier raised rates on a lane because drivers wait at your dock, fixing the wait time is a stronger argument than any competing quote.
Know your walk-away point
Before the conversation, decide the highest rate you will accept on each important lane, based on the alternative quotes and your budget. If the carrier comes in above it, move the lane to the alternative. If you walk away without a plan, you will end up back at the carrier's rate.
Get the outcome in writing
Whatever you agree, get it in writing: the new rates, the effective date, the term and any components that changed. Update the agreement or a signed rate sheet. A verbal promise to "hold rates for you" won't help when the invoice arrives.
When should you accept, push back or move the freight?
Accept when the increase matches the market and the service is good; push back when the increase is above what alternatives charge; move the freight when the carrier won't adjust and a proven alternative exists. Most decisions come down to a few rules.
Decision rules
| Situation | Likely response |
|---|---|
| Increase matches what other approved carriers quote, service is good | Accept, update budget |
| Increase is above alternatives on a few lanes | Negotiate those lanes using the quotes |
| Increase comes from minimums or accessorials | Negotiate the specific component |
| Increase is tied to dock wait times or site issues | Fix the site issue and ask for a review |
| Carrier won't adjust and alternatives are clearly better | Move the affected lanes |
| Carrier service is already poor | Use the increase as a reason to move the lane |
| No approved alternative exists on the lane | Accept for now, add and approve a backup carrier |
Common mistakes
Accepting the headline without re-rating. The carrier's average increase is not your increase. Without re-rating your own shipments, you can't tell finance what it will really cost.
Comparing base rates only. A carrier with a lower base rate and a higher fuel table or minimum charge can end up more expensive.
Moving everything at once. Moving all freight from a carrier after one notice can leave you without backup capacity and with a new carrier you haven't tested on volume. Move lanes in stages.
Treating the increase as permanent. Market rates go up and down. A rate accepted this year can be renegotiated next year, especially if your freight profile improves.
Forgetting the rate confirmations. After the change, every rate confirmation and invoice should reflect the new agreed pricing. If the carrier bills the old headline increase on lanes where you negotiated a lower rate, the invoice check has to catch it. See why a freight bill can come in higher than the quote.
Not telling anyone else. Sales may be quoting delivered prices to customers using old freight costs. Purchasing may be comparing supplier offers on old landed costs. A rate change that stays in the logistics inbox causes problems elsewhere.
When the increase is a signal
Sometimes a sharp lane increase means the carrier doesn't want the freight. The rate is high enough that the carrier is fine either way. If a carrier raises one lane far more than the others and won't explain or adjust, take the hint and move the lane. A carrier that accepts freight it doesn't want often provides weak service on it.
A checklist for responding to a rate increase
Work through these steps in order, from the day the notice arrives to the day the new rates take effect. The approval and budget steps are the ones most often skipped.
| Step | What to do | Owner | Done when |
|---|---|---|---|
| 1. Log the notice | Record the carrier, date received and effective date | Logistics | Notice is on file with the deadline |
| 2. Get full pricing | Request tariff, discount, minimums, fuel table, accessorials | Logistics | Full pricing is in writing |
| 3. Check the agreement | Confirm notice period and term | Logistics, legal if needed | Any conflict is raised with the carrier |
| 4. Re-rate shipments | Price recent shipments under old and new pricing | Logistics | Real monthly impact is known |
| 5. Find the hot spots | Sort impact by lane, customer, shipment size | Logistics | Top lanes are identified |
| 6. Quote alternatives | Request quotes from approved carriers on top lanes | Logistics | Comparable quotes are in hand |
| 7. Negotiate | Discuss components and lanes with the carrier | Logistics | Revised offer is received |
| 8. Approve | Present the decision and its cost for approval | Logistics manager, finance | Approval is recorded |
| 9. Update records | Load new rates, update rate targets and routing | Logistics | Rates match the agreement |
| 10. Update the budget | Adjust freight forecast and cost per unit | Finance | Budget reflects the new rates |
| 11. Tell stakeholders | Inform sales, purchasing, customer service | Logistics | Teams know what changed |
| 12. Check first invoices | Confirm invoices match the new agreed rates | Logistics, AP | First invoices are verified |
Getting approval
Most companies need someone above the logistics team to approve a rate change of any size. Make the approval easy. Present the real monthly and annual impact, the alternatives quoted, what was negotiated and your recommendation for each affected lane. A one-page summary with a table works better than a forwarded email chain. Record who approved what, and when, so the decision can be traced later.
Updating budgets and costs
Once approved, the new rates have to flow into the numbers other teams use. Finance needs the revised freight forecast. If the company tracks freight cost per unit or per order, those figures need updating. If sales quotes delivered prices, the freight component may need to change. For how freight costs feed into the annual plan, see building next year's freight budget.
Updating rate targets
If you set target rates by lane for quoting and negotiation, update them after the change. Targets based on last year's rates will make every new quote look too expensive, and targets set too high will stop anyone from pushing back. Use the alternative quotes as a guide to where the market sits.
Planning for the next one
Rate increases come back. Keep the re-rating file, the alternative quotes and the negotiation outcome together, so next year's response starts from data instead of from scratch. Make sure each important lane has at least one approved backup carrier, so you always have a real alternative to compare against.
How does Wilson, by Cartage, help when a carrier raises rates?
Wilson, by Cartage, is an AI logistics agent that quotes, books, tracks, audits and pays freight for manufacturers and distributors, so the comparison and follow-through after a rate increase happen load by load, not only once a year. Traditional logistics software gives teams information. Wilson executes the work required to move shipments forward.
When a carrier raises rates, Wilson helps with the steps that follow:
- Quoting alternatives: Wilson requests quotes from the company's approved carriers for each load, using the details from the order, and compares them on total cost, including expected accessorials and fuel. Cartage can suggest additional carrier capacity, but the company approves each carrier before Wilson uses it.
- Negotiating within limits: Wilson negotiates toward the company's rate targets within approval limits. Rates outside those limits go to the logistics team for a decision.
- Booking at the agreed rate: Wilson tenders and books with written acceptance and a rate confirmation, so every load records the price the carrier agreed to.
- Checking invoices: Wilson audits each carrier invoice against the rate confirmation and the POD. If a carrier bills a rate that doesn't match what was agreed, the invoice waits for a person instead of being paid. Payments from the Wilson Wallet that fall above the approval limits or outside the rules also wait for a person.
- Reporting on request: Wilson can produce carrier-performance and lane-rate reports on request from the loads it runs, which gives the team the data for the next negotiation.
Every quote, message, confirmation and change is kept in the shipment's change history. Wilson replaces the TMS for freight execution and connects to the company's ERP. Wilson works with SAP, NetSuite, Microsoft Dynamics 365, Oracle, Infor, Epicor, Sage, Acumatica and other ERP environments, with the exact connection depending on the customer's data flow and scope.
Teams start with assisted execution and set their own approval limits. Routine actions can run automatically within those rules as the workflow is proven.
Pricing
Wilson is free on Wilson's network: the shipper pays the freight rate and nothing on top. When a shipper keeps its own carriers, the fee is 2% to 0.5% of what Wilson pays them, falling with volume. There are no seat fees, no setup cost and no contract. Timing depends on scope: most teams start on a few lanes and expand from there.
FAQs
Our carrier just raised rates. What should we do?
Get the full new pricing in writing, re-rate your recent shipments to find the real impact, quote the affected lanes with your other approved carriers, then negotiate, approve and update the budget. Wilson, by Cartage, an AI logistics agent, requests quotes from the company's approved carriers and negotiates toward its rate targets within approval limits.
What is a general rate increase?
A general rate increase, or GRI, is a carrier's across-the-board price change, usually applied to its base tariff. If your discount stays the same, your net rates still rise. LTL, truckload and parcel carriers all announce their own versions.
Is a carrier rate increase negotiable?
Often, yes, especially on lanes the carrier wants to keep. Carriers tend to have more flexibility on individual components, such as minimum charges, discounts or accessorials, than on the general increase itself.
How do I calculate the real impact of a rate increase?
Take a recent period of shipments with the carrier and price each one under the old and new pricing, including fuel at the same diesel price and the accessorials that applied. The total difference is your real increase.
Should we move freight to another carrier after a rate increase?
Only after quoting the lanes with approved alternatives and comparing total cost and service. Move lanes where an alternative is clearly better and the current carrier won't adjust, and move them in stages rather than all at once.
What if every carrier quotes higher?
Then the increase probably reflects the market. Accept it, update the budget and rate targets, and look for savings elsewhere, such as better freight data, consolidation or fewer accessorials.
Can a carrier raise rates in the middle of a contract?
That depends on the agreement. Some agreements fix rates for a term or require notice before changes. Check yours, and talk to your legal counsel if the notice seems to conflict with it.
What should I offer a carrier in a rate negotiation?
Volume commitments, accurate freight data, faster loading, reliable appointments, steady tendering and longer rate terms. Carriers value freight that is easy and predictable to move.
Who needs to know about a carrier rate change?
Finance, for the budget and cost per unit; sales, if freight is part of delivered pricing; purchasing, for landed cost; and customer service, if delivery options change.
How do I make sure invoices reflect the negotiated rate?
Check each invoice against the rate confirmation for the load before paying. Wilson audits each carrier invoice against the rate confirmation and POD and holds any mismatch for a person.
Sources
- Cartage, Wilson product FAQ and product scope, October 2026: https://cartage.ai