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 a new destination-based compensation increase for its fleet partners within its LTL and Truckload divisions.
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Destination Based Compensation Map (Graphic: Business Wire)
The destination-based model provides additional compensation to team and solo owner operators based on the destination of their load. Today’s announcement is another example of Forward’s commitment to grow our business and ensure our fleet partners are profitable and successful. This is the fifth rate increase for Forward’s OTR fleets in the past four years.
Tim Parker, Senior Vice President, Linehaul Logistics said, "We are excited to make this adjustment, as it helps level-set supply and demand. Some areas of the country are less attractive for drivers due to factors such as urban road congestion, crowded fuel stops, limited parking or frequent road construction. These factors can lead to reduced utilization and higher equipment maintenance costs. The destination-based compensation increase will help offset those additional costs."
The destination-based compensation increase comes after the Company implemented its largest ever rate increase for leased capacity providers in March. Forward also offers a lucrative sign-on bonus program to help drive first year profitability for transitioning owner operators or fleet owners. The 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.
"Today’s announcement will have a very positive impact on our fleet partners. We’ve executed on a number of initiatives that not only help drive our impressive retention, but also encourage those Independent Contractors and Fleet Owners looking for a stable, highly profitable home for their trucks. From our constant review of per mile compensation, increased dedicated opportunities, the reliability of our closed network, and our unique Fleet Forward program that pays multiple truck owners an additional rate per mile on all miles based on the size of their fleet - the message is clear, we are committed to the sustained success of our fleet," said Kyle Mitchin, Chief People Officer.
Forward’s LTL and Truckload fleet opportunities consist of running its 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. Additionally, any drivers interested in connecting to one of our five-star fleet owners are encouraged to apply.
About Forward Air Corporation
Forward Air Corporation (NASDAQ: FWRD) is a leading asset-light freight and logistics company. We provide LTL, final mile, truckload and intermodal drayage services across the United States and in Canada. Headquartered in Greeneville, Tennessee, Forward operates approximately 200 facilities across the country and employs more than 5,200 people nationwide. 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.forwardaircorp.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 impact of the Company’s new destination-based compensation increase on its fleet partners and its ability to attract and retain the best drivers. 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 statement contained herein in light of such risks. We assume no duty to update these statements as of any future date.
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