Old Dominion announces 4.9% general rate increase

Old Dominion (ODFL) announced a general rate increase, or GRI, of 4.9% applicable to rates established under the existing ODFL 559, 670, and 550 tariffs, effective December 2. Todd Polen, Old Dominion Freight Line’s VP – pricing services, commented, “The general rate increase is based on the Company’s economic forecast and expectations for the operating environment. We must continue enhancing our high-quality service network and systems to meet and exceed our customers’ expectations and deliver on our promises. At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price. This GRI will affect our class tariffs and is intended to partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages. Although the GRI will impact each customer differently based on specific shipment lanes and distance traveled, it is consistent with our long-term yield management philosophy and the overall impact of the increase is anticipated to be approximately 4.9 percent. The GRI also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes.”