Forward Air Announces 2024 General Rate Increase

Rhea-AI Summary

Forward Air Corporation (NASDAQ: FWRD) announces a 5.9 percent general rate increase (GRI) to offset rising operating costs in the freight transportation industry, aiming to maintain best-in-class service.

Positive

• Forward Air Corporation (NASDAQ: FWRD) is investing in customer support, safety, and service enhancement to maintain best-in-class service.
• Forward Air Corporation leads the less-than-truckload (LTL) industry with best on-time performance, fastest speed on major lanes, and lowest damage rates.

Negative

• The 5.9 percent general rate increase may lead to potential customer pushback or loss if competitors do not follow suit.
• Increased operating costs in real estate, equipment, and economic inflation may impact the company's bottom line.

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ: FWRD) (the “Company” or “Forward”) today announced a 5.9 percent general rate increase (GRI) on any shipments tendered on or after February 5, 2024.

The rate changes will enable the Company to continue investing in customer support, safety and service enhancement, as operating costs have risen for many in the freight transportation industry. Factors necessitating the GRI include increased costs in real estate, equipment, cost per mile and economic inflation.

As an expedited carrier, Forward leads the less-than-truckload (LTL) industry with best on time performance, fastest speed on major lanes and lowest damage rates. Forward remains committed to providing best-in-class, premium expedited service to its customers.

About Forward Air Corporation

Forward Air is a leading asset-light provider of transportation services across the United States, Canada and Mexico. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer final mile services, including delivery of heavy-bulky freight, truckload brokerage services, including dedicated fleet services; and intermodal, first-and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. We are more than a transportation company. Forward is a single resource for your shipping needs. For more information, visit our website at www.forwardaircorp.com.

This press release may contain statements that might be considered as forward-looking statements or predictions of future operations including with respect to the expected growth and future performance of the Company and the ability of the Company to make necessary adjustments that will allow it to continue providing world-class service to its customers. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management’s belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties including that the rate changes will not be enough to mitigate higher operating costs and that the Company is not able to achieve its planned growth and expansion. Actual events may also differ from these expectations as a result of the risks identified from time to time in our filings with the Securities and Exchange Commission. You should consider the forward-looking statement contained herein in light of such risks. We assume no duty to update these statements as of any future date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231211691193/en/

MEDIA CONTACT:

Justin Moss - Forward Air

JMoss@forwardair.com

404.362.8933

Source: Forward Air Corporation

FAQ

What is the recent announcement from Forward Air Corporation (NASDAQ: FWRD)?

Forward Air Corporation (NASDAQ: FWRD) announced a 5.9 percent general rate increase (GRI) on shipments tendered on or after February 5, 2024.

What is the reason behind the rate increase by Forward Air Corporation (NASDAQ: FWRD)?

The rate changes aim to offset increased operating costs in the freight transportation industry, including real estate, equipment, cost per mile, and economic inflation.

What are the competitive advantages of Forward Air Corporation (NASDAQ: FWRD) in the less-than-truckload (LTL) industry?

Forward Air Corporation leads the LTL industry with best on-time performance, fastest speed on major lanes, and lowest damage rates.

How does Forward Air Corporation (NASDAQ: FWRD) plan to utilize the rate increase?

The rate increase will enable the company to continue investing in customer support, safety, and service enhancement.

What are the potential drawbacks of the rate increase by Forward Air Corporation (NASDAQ: FWRD)?

The 5.9 percent general rate increase may lead to potential customer pushback or loss if competitors do not follow suit, and increased operating costs may impact the company's bottom line.