Old Dominion Freight Line, a less-than-truckload carrier based in Thomasville, N.C., announced an increase in its base rates effective Nov. 15. The general increase involves a restructure that provides for increases in rates based on length of haul rather than the traditional across-the-board increases, says Todd Polen, vice president of pricing. The tariffs affected by the increase are the ODFL 559/555 and the 505 Canadian tariffs.
“The rate increase will also provide for a nominal increase in minimum charges in intrastate, interstate or cross-border lanes,” Polen says. “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 4.9 percent.” Similar increases also will be made on Alaska, Hawaii, Puerto Rico, Caribbean, Canada and Mexico rates, he says.
Polen says customers have asked for more capacity and more opportunity to take advantage of Old Dominion’s products and services. “In order to meet that demand and deliver on the commitments we have made to the marketplace, we must continue to build our network and systems,” he says. “However, delivering on that promise is capital-intensive. Therefore, the increase is necessary to offset the rising cost of new equipment, escalating insurance costs, secure new service center capacity, continue to develop state-of-the art technology and provide for competitive wages and benefits. We believe the increase is essential in order to continue to provide our customers with an industry-leading value proposition.”