Forward Air Announces Largest Ever Rate Increase for Independent Contractor Drivers
December 16 2021 - 10:46AM
Business Wire
Forward Air Corporation (NASDAQ: FWRD) (the “Company” or
“Forward”) is executing a growth strategy that involves organic
infrastructure investments, such as its ongoing LTL network
expansion, as well as inorganic investments, including acquisitions
of complementary businesses. Forward today announced the largest
ever rate-per-mile increase to its independent contractor fleet
within its less-than-truckload (“LTL”) and Truckload divisions.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20211216005790/en/
Forward Air Team Drivers (Photo: Business
Wire)
Today’s announcement of a fifteen cent per mile increase for
independent contractor fleets and independent contractor teams and
solo drivers is an example of Forward’s commitment to grow our
business and provide our independent contractors an excellent
opportunity to operate and grow a successful business.
This announcement represents the largest per-mile increase in
company history and is the third increase announced this year and
the sixth in the last five years. With this fifteen cent per mile
increase, we anticipate team independent contractors to have the
ability to earn in excess of $497,250 annually/$41,437 monthly and
solo independent contractors to have the ability to earn in excess
of $203,500 annually/$16,958 monthly.
This increase, combined with other increases since 2016, means
the average Forward independent contractor rate per mile for solos
and teams has increased 25% and 43%, respectively over that time.
Additionally, this increase alone allows for existing independent
contractor solos and teams to increase their earnings
year-over-year by 13% and 10%, respectively. These numbers do not
include the opportunity for the recently announced destination
compensation (up to $0.25 per mile for teams, and $0.125 per mile
for solos) which provides additional compensation to independent
contractors for taking loads into certain states.
“Our business continues to experience record volume growth. We
remain focused on our commitment to delivering our customers’
freight with precision execution. We believe this rate increase
will allow us to secure freight capacity by retaining our existing
fleet and attracting new independent contractors and fleet owners
to become business partners with the Forward team,” said Tom
Schmitt, Chairman, President and CEO of Forward. “This rate
increase recognizes the dedication to excellence, precision
execution, and the safety-first mentality displayed by Forward’s
independent contractors.”
Per-Mile Rate
Composition
OTR Team
$1.55 Loaded
$1.28 Empty
+.02 HAZ
+ $.02 New Truck
+ Fuel Surcharge
+ Destination Compensation (Up to
$0.25/mile)
Per-Mile Rate
Composition
OTR Solo
$1.31 Loaded
$1.18 Empty
+.02 HAZ
$.02 New Truck
+ Fuel Surcharge
+ Destination Compensation (Up to
$0.125/mile)
Fleet Owner Rate
Composition
Solo & Team
Additional Per-mile Compensation
up to $0.15 per mile on all miles, based on # of trucks.
Forward offers a robust nation-wide expedited LTL operation,
allowing independent contractors to run from one Forward terminal
to another in our closed LTL network - which combined with our
sixth-rate increase in five years provides an outstanding
environment for success.
Forward’s LTL and Truckload fleet opportunities consist of
running our national LTL network (terminal to terminal – drop and
hook), dedicated lanes and open board opportunities. Fleet owners
and owner operators can expect consistent miles, revenue, and
mobile app technology to assist in the management of their
business.
Forward’s lucrative sign on bonus program is still in place to
help drive first year profitability for a transitioning Owner
Operator/Fleet Owner. The sign on bonus consists of $10,000 per
team truck and $4,000 per solo truck added to the Forward fleet –
all paid out in the first year of service. Any drivers interested
in connecting to one of our five-star fleet owners are encouraged
to apply.
For more information, visit www.DriveForwardAir.com or email
Recruiting@ForwardAir.com.
About Forward Air Corporation
Forward Air Corporation (NASDAQ: FWRD) is a leading asset-light
freight and logistics company that provides services across the
United States and Canada. We provide expedited LTL services,
including local pick-up and delivery, shipment
consolidation/deconsolidation, warehousing, and customs brokerage
by utilizing a comprehensive national network of terminals. In
addition, we offer final mile services, including delivery of
heavy-bulky freight, truckload brokerage services, including
dedicated fleet services; and intermodal, first-and last-mile,
high-value drayage services, both to and from seaports and
railheads, dedicated contract and Container Freight Station
warehouse and handling services. We are more than a transportation
company. As a single resource for your shipping needs, Forward is
your supply chain partner. For more information, visit our website
at www.forwardair.com.
This press release may contain statements that might be
considered as forward-looking statements or predictions of future
operations including with respect to the expected volume growth and
future performance of the Company and the ability of the Company to
attract and retain independent contractors. Such statements are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and are based on
management’s belief or interpretation of information currently
available. These statements and assumptions involve certain risks
and uncertainties. Actual events may also differ from these
expectations as a result of the risks identified from time to time
in our filings with the Securities and Exchange Commission. You
should consider the forward-looking statements contained herein in
light of such risks. We assume no duty to update these statements
as of any future date.
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version on businesswire.com: https://www.businesswire.com/news/home/20211216005790/en/
Sophia Farooq sfarooq@forwardair.com 404-362-3959
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