Dive Brief:
- Old Dominion Freight Line will roll out a 4.9% general rate increase next month, the carrier announced in a news release Monday.
- The annual increase, which applies to rates established under the existing Old Dominion 559, 670, and 550 tariffs, is effective Dec. 2, the company said.
- “This GRI will affect our class tariffs and is intended to partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages,” said Todd Polen, VP of pricing services, in the announcement.
Dive Insight:
Old Dominion is raising rates in December — rather than in January, as it had done previously — for the second year in a row.
The rate is rising by the same percentage as last year’s, and the increase is similar to the average rate hikes announced by competitors FedEx Freight (5.9%), ABF Freight (5.9%) and Saia (7.9%) this year.
Old Dominion’s increase is based on the carrier’s economic forecast and expectations for the operating environment, Polen said in the announcement.
“We must continue enhancing our high-quality service network and systems to meet and exceed our customers’ expectations and deliver on our promises,” Polen said. “At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price.”
The rate increase will affect each customer differently based on specific shipment lanes and distance traveled, the carrier’s VP of pricing said.
“The GRI also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes,” Polen said.
