Common use of Cost Increases Clause in Contracts

Cost Increases. After the first year of the Term, Service rates will automatically increase annually by three percent (3%). CARRIER shall have the right to charge a surcharge for fuel as set forth in the matrix below, a security surcharge of five percent (5%), and insurance cost increases, provided that CARRIER must give CUSTOMER at least ninety (90) days’ notice prior to implementing any charges related to insurance cost increases.