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Lone Star Overnight Announces Annual General Rate Increase (GRI), Effective Jan. 2, 2022


January 4, 2022
LSO
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AUSTIN, Texas, Nov. 18, 2021  -- Lone Star Overnight (LSO™), the leading parcel carrier in the Southwest and Central regions, is announcing a general rate increase (GRI), effective Jan. 2, 2022, that will average 5.9% on base rates. This news follows the earlier rate increase announcements from FedEx and UPS.

Richard M. Metzler, LSO President, and Chief Executive Officer commented, "Overall, LSO rates will continue to be significantly less expensive than FedEx and UPS for 2022. Compared to FedEx and UPS, our express and ground rates are much lower at key weights and zones. Shippers should also note that our accessorial fees are almost always significantly lower, which can have a significant impact on the total cost to ship."

Among the cost savings LSO provides vs. FedEx and UPS:

  • Next day service - 25% less on average, and up to 47% less Next day service (by 3:00 p.m.)
  • Ground service - 16% less on average for heavier parcels

Metzler went on to say, "ShipMatrix reported Oct. 23, 2021 in the Wall Street Journal that FedEx Ground on-time service levels were less than 85% in the third quarter when we were in the high-to-mid 90s for most of that quarter. Our customers, and theirs, continue to tell us that LSO has better on-time reliability, is less expensive, and has proven to be more flexible during the very challenging 2020 peak season when it counted most. That is a key factor of why we grew our e-commerce product by 185% last year."

Following LSO's peak surcharge update for e-commerce shipping between Oct. 15, 2021, and Jan. 13, 2022, pricing for each package is significantly lower than FedEx and UPS, there are no thresholds based on volume and no tiered surcharge levels. The simpler flat-rate surcharge level is based on individual shipping characteristics and volume throughout the year, and there is no peak surcharge for most business shippers.

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