Pricing discipline the focus for carriers in cheap fuel market
Airlines and trucking companies at Stifel Transportation and Logistics Conference said the value of a service can’t be undercut by the short-term impact of low fuel prices.
Excerpt from American Shipper | By: Eric Johnson | February 13, 2015
If there was a phrase to watch among speakers at this week’s Stifel Transportation and Logistics conference in Miami, it was “pricing discipline.”
Carriers across the spectrum of modes – from truckload to less-than-truckload to air – stressed that they would have to hold fast to rate levels in the face of intense competition and low fuel prices.
“When you maintain service levels, you can maintain pricing discipline,” said Wes Frye, chief financial officer of the LTL carrier Old Dominion Freight Line. “Shippers don’t want a 30 percent discount, then a 35 percent rate increase with no difference in service.”