Old Dominion Freight Line will raise rates 4.9% next month, the LTL carrier announced Thursday.
The increase, applicable to rates established under Old Dominion 559, 670 and 550 tariffs, is effective Jan. 3.
Old Dominion based the increase — which is lower than the 6.9% hikes announced by parcel carriers FedEx and UPS — on its economic forecast and expectations, according to the announcement.
It seeks to partially offset rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages, Vice President of Pricing Services Todd Polen said in a statement.
“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 increase will affect each customer differently based on specific shipment lanes and distances, Polen said. But he said the pricing maneuver was “consistent with our long-term yield management philosophy.”
The increase also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes, Polen said.
With inflation and other cost pressures going nowhere, freight companies are hiking rates, even with demand slowing.
DHL Express will levy an even larger 2023 rate increase than those announced by FedEx and UPS. The parcel carrier plans to raise rates for U.S. account holders by 7.9% on Jan. 1, it said.
