Allied Holdings adding “processing fee”

Aug. 6, 2001
Automotive transporter Allied Holdings, Inc. will increase its pricing with an administrative processing fee for vehicles transported on behalf of its clients in the U.S. and Canada. Allied said it will begin charging this fee – adding up to an 8.5% price increase – on or about September 6 to approximately 85% of its business. “We have completed a careful diagnosis of our rate structure and pricing
Automotive transporter Allied Holdings, Inc. will increase its pricing with an administrative processing fee for vehicles transported on behalf of its clients in the U.S. and Canada. Allied said it will begin charging this fee – adding up to an 8.5% price increase – on or about September 6 to approximately 85% of its business.

“We have completed a careful diagnosis of our rate structure and pricing for all of our customers and have determined that Allied will charge a new processing fee for all vehicles transported for each of our clients so that we are more fully compensated for our services,” said Hugh E. Sawyer, Allied’s president & CEO.

“Allied performs many underlying services for its clients which are directly related to our core business of transporting vehicles and this processing fee is designed to compensate us for these services,” he added. “Our new rate structure will enable Allied to continue to invest in the people, technology and equipment needed to better serve our clients and meet their requirements for service and delivery times.”

The new fee comes at a time of heavy financial losses for Allied. The company recently reported that its second quarter revenues declined 15%, resulting in a loss of $5.7 million. Through the first six months of 2001, Allied has posted losses of $24.6 million, compared to net income of $5.9 million for the same period in 2000.

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Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

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