Old Dominion Freight Line Inc. announced Friday, Feb. 6, that it would be increasing its base rates effective Feb. 16. The general increase involves a restructure that provides for increases in the less-than-truckload company’s rates based on length of haul rather than the traditional across-the-board increases. The rate increase does not affect minimum charges in intrastate, interstate or cross-border lanes.
“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 approximately 5.6 percent,” says Rick Keeler, senior vice president of pricing and strategic development for Thomasville, N.C.-based Old Dominion. Smaller increases will be taken on Alaska, Hawaii, Puerto Rico, Caribbean and Mexico, Keeler says.
The tariffs affected by the increase are the ODFL 559/555 and the 505 Canadian tariffs. “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,” Keeler says. “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.”