Over-Dimension Rule – Final Update

  • Over-Dimension Rule – Final Update

    ** 01/06/22 Update  –  Ward Trucking’s new Over-Length fees effective 1/3/22 are now available in the Excel file below**

    **01/04/22 Update  –  Southeastern’s new Over-Length fees effective 1/10/22 are now available in the Excel file below**

    With the start of the new year 2022 it looks like all LTL carrier updates to their Over-Dimensional or Over-Length fees are now in place.  You will recall that beginning 11/1/2021 a number of LTL carriers began adjusting (increasing) their Over-Dimensional fees.  Most other LTL carriers soon followed through, with the final amendments becoming effective today.

    Note that we have two apparent hold-outs, one being a regional carrier in the Northeast and another being a regional carrier in the Southeast. I will keep an eye on both, and will post an update if they do indeed amend their item.  If you become aware of updates by these two carriers, please let me know.

    You can see from the final table that some LTL carriers clearly would prefer to NOT handle any over-length freight at all, unless they are richly compensated.  Other carriers appear ready and willing to handle this freight albeit at a higher price.  My view is that the LTL carriers, with networks choked by abundant freight and numerous disruptions, finally took the time to really consider the primary, secondary, and tertiary costs of handling and transporting long pieces of freight.  Are Over-Dimensional pricings going to come down once network pressure eases?  Most likely not.  Rather, as we move into the Spring and Summer of 2022, we may see a handful of carriers continue tweaking their rates to align non-conducive freight levels with their appetite.

    In the end, shippers of long articles need to have open conversations with their carrier partners, period.  They need to provide carriers with accurate shipment dims on every LTL shipment tendered so their carriers can optimize planning, ensure correct revenue capture, and ensure correct cost application.  Their carrier partners need to know what to expect.  It is in a shipper’s  interests to help the carriers so they can provide the capacity needed.  And shippers need this dimensional data anyway, such as in the event you need to switch or add providers for any reasons.

    And carriers, if you know a shipper has long freight, you really should consider NOT handling it unless the shipper provides you with accurate dimensional data on the BOL.  It’s not worth it to let even one of these shipments slip through your network without proper application of the Over-Dimension fee to supplement revenue and provide accurate costing.  That’s an unforced error.

    Below is the Excel file I have used to to track carrier Over-Dimension changes plus outline any specific and material rule applications.  You can download this file for your own use as needed.  Enjoy.

    Leave a comment

    Required fields are marked *