Forward Air Announces A 5.9% General Rate Increase On Any Shipments Tendered On Or After February 5, 2024
Portfolio Pulse from Benzinga Newsdesk
Forward Air Corporation (NASDAQ:FWRD) announced a 5.9% general rate increase for shipments starting February 5, 2024. This adjustment is to support continued investment in customer support, safety, and service enhancements amid rising operating costs in the freight transportation industry, including real estate, equipment, cost per mile, and inflation. Forward Air is known for its expedited less-than-truckload (LTL) services, on-time performance, speed, and low damage rates.

December 11, 2023 | 2:28 pm
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Forward Air Corporation's 5.9% rate increase reflects its strategy to manage higher operating costs and continue investments in service quality. This may positively influence revenue but could affect demand elasticity.
The rate increase by Forward Air is a direct response to rising operating costs and is aimed at maintaining service quality. While this could lead to higher revenues, there is a risk that customers may seek more cost-effective alternatives if the price increase affects their willingness to pay. However, given Forward Air's strong market position and focus on expedited LTL services, the impact is likely to be positive in the short term as the company can potentially pass on the costs to customers without significant loss of business.
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