Estes Express Lines Announces A General Rate Increase
RICHMOND, VA, May 2—Estes Express Lines announced a general rate increase of 4.6%, effective today. The increase applies to both Estes’ direct business as well as shipments moving between Estes and the three other ExpressLINK carriers—G.I. Trucking, Lakeville Motor Express and TST Overland Express.
Revised rates are available on our website. Individual rate quotations can also be obtained by calling a local Estes terminal or by contacting an Estes Rating Specialist at 804-353-1900, Extension 2269.
“The reasons for the increase actually go back to 2004,” explained Vice President of Pricing and Traffic Paul Dugent. “With the new Hours of Service laws, the trucking industry experienced some of its most significant challenges since deregulation in 1980. The revised laws increased operating costs and created a shortage of qualified truck drivers. Ironically, this was happening just as the economy was rebounding from a recession and generating greater demands for LTL services. Estes responded by stepping up capacity in selected markets and by investing in new technology and equipment to improve operational efficiencies.”
In addition to the expenses generated by last year’s service laws, the company is also anticipating an increased demand from a robust economy in 2005 that will necessitate even more operational expenses and equipment purchases. “Equipment costs are continuing to rise which means that Estes will need to invest more than $66 million in equipment and $20 million in technology this year. This will enable us to continue providing customers with reliable service and timely information,” said Dugent.
The company sited escalating insurance costs as another reason for the increase. “Costs for both our health and liability insurance plans are going up by 10% this year,” stated Dugent.
About Estes Express Lines
Estes Express Lines is a full-service, multiregional transportation provider founded in 1931 by W.W. Estes. Still owned and operated by the Estes family, the company now employs over 10,000 people and boasts an inventory of more than 19,000 pieces of power equipment and trailers. Estes Express has grown from a small local carrier into one of the most respected multiregional, less-than-truckload and truckload transportation systems in the country. Beyond its direct service to 33 states and the Caribbean, the company also provides service to major commercial markets in Mexico, as well as complete coverage of the United States and Canada through its membership in the ExpressLINK service network.