ArcBest pricing adds dimensions of load
ArcBest Corp. has changed its pricing structure to take into account a shipment’s dimensions as well as weight, the company said Friday. Previously, the minimum charge for its lessthan-truckload shipments was strictly weight-based.
“Based on the way their pricing is set, they weren’t capturing enough revenue for some of these lighterweight, big bulky items that were taking up space in their trailers,” said Brad Delco, transport analyst at Stephens, Inc.
He referred to the example of shipping 10 pounds of lead versus 10 pounds of pingpong balls and the different amounts of space they can take up in a trailer.
Delco said that ultimately, the change is a price increase, “which you don’t take unless you have confidence in the demand environment and your ability to add value for your customers. So this is positive for [ArcBest] and should be read as a positive data point for the industry.”
The change will go into effect Aug. 1.