Reliance Network gets DOJ's okay to bid collectively
By David Hannon -- Purchasing, 10/15/2009 2:00:00 AM
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The Reliance Network, a collection of six regional LTL carriers, received Department of Justice clearance in September to bid jointly on LTL contracts as one entity.
"Based on representations made by the applicants, the proposed conduct is not likely to reduce competition in regional LTL truck transportation markets and could enhance competition in the long haul LTL market," the Department of Justice said.
The six regional LTL carriers that make up the Reliance Network include: Averitt, DATS, Lakeville Motor Express, Land Air Express, Pitt Ohio Express and Canadian Freightways.
Phil Pierce, senior vice president of sales and marketing at Averitt Express, tells Purchasing the carriers within the network has less formalized relatinships before the Reliance Network was launched in March 2008.
The six carriers created guidelines and strategies for how the Reliance Network operates. Shippers can put shipments into the network through regional carriers. All carriers in the network have agreed on a standard set of accessorial charges and share tracking and tracing data.
Pierce emphasizes that Averitt and all the other members of the network are still regional carriers at their core. "We are still very bullish on the regional LTL market," he says. "And we are all still experts in our regional markets and can provide broader service at a national rate."
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