Old Dominion Announces Rate Increase

Todd Polen, vice president of pricing for Old Dominion Freight Line Inc., announced that the organization will increase its base rates effective Sept. 6, 2011.

“The general increase is in keeping with our long-term pricing philosophy and as such involves a restructure that provides for increases in our rates based on length of haul rather than the traditional across the board increases,” he said. “The tariffs affected by the Sept. 6, 2011, 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. 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 will also be taken on Alaska, Hawaii, Puerto Rico, Caribbean, Canada and Mexico.”

Polen added: “In order to meet [customer] 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. Therefore, the increase is necessary to offset the rising cost of new equipment, escalating insurance costs, securing new service center capacity, continuing to develop state-of-the art technology, and providing for competitive wages and benefits.”