Con-way says new LTL pricing plan will 'transform' trucking industry

Con-way's new pricing plan will guarantee on time delivery or shipment will be free, the company announced.

The Trucker News Services

6/16/2009

ANN ARBOR, Mich. — Con-way Freight, a less-than-truckload carrier and subsidiary of Con-way Inc., has announced the introduction of True LTL Pricing.

The company said the new pricing structure would “transform” the trucking industry.

The industry’s first capped pricing model offers customers uncomplicated truckload-style pricing for large LTL shipments, according to Sean M. Devine, vice president of pricing/engineering. True LTL Pricing is predictable and less expensive than truckload — eliminating the uncertainty, complexity and waste of previous LTL pricing models, he said.

“Customers want LTL shipping to be easy to use and less expensive than truckload, no matter whether their shipments are large or small,” Devine said. “True LTL Pricing offers this certainty to everyone without the need for negotiations, along with all the advantages of Con-way Freight’s optimized network.

“True LTL Pricing is not only an innovative pricing solution, but it also represents a big step on the sustainability path as it reduces waste in the transportation industry. Mixing smaller and larger shipments decreases the number of trucks on the road — ultimately conserving fuel, reducing carbon emissions and cutting down on traffic congestion.”

Con-way Freight’s True LTL Pricing applies the formula commonly used in truckload shipping and removes many of the current unexpected charges, such as the lineal foot rule, shippers face when moving large LTL freight, the company said.

According to Devine, Con-way customers will benefit from:

• Capped pricing — never pay more than truckload.

• Guaranteed on-time delivery — it’s on time or it’s free.

• Reliable, same-day pickup — available trucks when customers need them.

• Less waste than shipping via truckload — fewer trucks on the road and reduced fuel consumption, carbon emissions and traffic congestion.

“We recognize customers tend to choose truckload for large LTL shipments due to the unexpected charges and unpredictability of LTL pricing,” John G. Labrie, president, Con-way Freight, said. “Today, we’re fundamentally transforming the way we do business with the introduction of True LTL Pricing. We listened to customers and developed a solution giving them total confidence when choosing Con-way Freight for all their shipping needs.”

In 2007, Con-way Freight combined its three operating units to become more agile in the marketplace to meet the needs of customers, Labrie said, adding that True LTL Pricing is the company’s latest solution as an industry-leading carrier.

For more information on True LTL Pricing www.con-way.com/trueltl.

Kevin Jones of The Trucker staff can be reached to comment on this article at kevinj@thetrucker.com.

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