March 19, 2007
Estes Express Lines Announces
A General Rate Increase
Dear Valued Customer:
At Estes Express Lines, we are committed to providing the superior service that you have come to expect from us. To continue operating at this level and to remain competitive, it is necessary for us to implement a price increase averaging 5.5% effective April 2, 2007. This increase also applies to shipments moving between Estes and our ExpressLINK member carriers.
An increase is essential for a number of specific reasons:
- As you well know, the cost of doing business continues to rise. Labor costs alone make up more than 60% of our total expenses, and for this reason, any increase in labor-related costs has an especially big impact on our operations. This year, we expect to spend an additional 3% to attract and retain top quality employees.
- Our health insurance premiums are increasing by 10%. Once again, this amount is magnified by the total percentage of costs devoted to labor.
- A major expense for any freight transportation operation, our liability insurance premiums are also increasing by 10%.
- In addition, we will spend $30 million for terminals and technology this year to ensure that we can continue to provide our customers with a comprehensive network and reliable service backed by timely information.
If you currently have a copy of our rating software, the revised rates will be mailed to you. On March 29, 2007 the new rates will be available on this website. And, as always, to receive individual rate quotations, simply call your local Estes terminal or contact one of our Corporate Office rating specialists at 804-353-1900, Ext. 2269. Feel free to contact your Estes sales representative with any questions. Thank you for allowing Estes Express Lines to be your transportation service provider.
Paul J. Dugent
About Estes Express Lines
Estes Express Lines
Vice President, Pricing & Traffic
Richmond, VA-based Estes Express Lines is a full-service transportation provider offering coast-to-coast North American coverage. Founded in 1931 by W.W. Estes, the company is still owned and operated by the Estes family. During the past 75 years, 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. Estes now employs more than 13,500 people and boasts an inventory of more than 29,000 pieces of power equipment and trailers. With a network of 185 terminals, the company serves 46 states, the Caribbean and major commercial markets in Mexico, while covering the rest of the United States and Canada through its membership in ExpressLINK.