Less-than-truckload carrier Old Dominion Freight Line recently increased its base rates. The Thomasville, N.C.-based company says the general increase, effective Feb. 11, involves a restructure that provides for increases in its rates and minimum charges based on length of haul rather than the traditional across-the-board increases.
Generally, the shorter the haul, the lower the impact of the rate increase, according to ODFL; although each customer will have a different financial impact based on the lanes and distance their shipments move, the overall impact of the increase is about 5.4 percent. The tariffs affected by the increase are the ODFL 559/555 and the 505 Canadian tariff.
“The increase is necessary to offset higher costs as a result of new equipment, new service centers, state-of-the art technology and insurance costs, as well as wages and benefits,” says Rick Keeler, senior vice president of pricing and strategic development. “We believe the increase is essential to continue to provide our customers with the value in technology and quality performance they have come to depend on.”