Old Dominion Freight Line on Monday, Aug. 22, announced base rate increases of an average of 4.9 percent effective Sept. 6. The restructure provides for increases in rates based on length of haul rather than across-the-board increases. Charges in intrastate, interstate and cross-border lanes are affected. Similar increases also will be taken on Alaska, Hawaii, Puerto Rico, Caribbean, Canada and Mexico.
“At OD, we are committed to delivering on a value proposition that promises excellent transit service, award-winning technology and best-in-class claims-free delivery at a fair and reasonable price,” says Todd Polen, vice president of pricing for the Thomasville, N.C.-based company. “As a result of that commitment, our customers have asked for more capacity and more opportunity to take advantage of the products and services OD has to offer. In order to meet that demand and deliver on the commitments we have made to the market place, we must continue to build our network and systems. However, delivering on that promise is capital-intensive.”
Polen says the price increase is necessary to offset the rising cost of new equipment, escalating insurance costs, securing new service center capacity, continuing to develop the latest technology and providing 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,” he says.