The Kenan Advantage Group Inc (KAG) has announced that its Fuels Delivery Group will seek a rate increase of 3% for all non-contract customers effective July 1, 2010. KAG’s contractual customers will be addressed on an account-by-account basis.
This increase will allow the company to continue its level of service while retaining and hiring quality drivers. The increase comes after basically a two-year hiatus in rate increases due to the country’s slowed economy.
According to Bruce Blaise, executive vice-president of the Fuels Delivery Group, “As the economy begins to rebound and capacity tightens in the marketplace, we expect to experience another onslaught of driver shortages throughout the country. Many drivers have permanently left the industry over the past couple of years after several transportation companies either closed or implemented severe layoffs due to decreased demand and high fuel costs.
“To proactively prepare for this changing environment and ensure capacity for our valuable customers, we believe it is imperative that we continue to secure the employment of our drivers, who we consider to be the best drivers in the country,” said Blaise. “This requires providing competitive wages for our hard-working men and women on the front lines of our business.”