Less-than-truckload (LTL) carrier Old Dominion Freight Line Inc. has announced that it will be increasing its base rates effective January 18, 2010.
“The general increase involves a restructure that provides for increases in our rates based on length of haul rather than the traditional across the board increases,” explains Todd Polen, vice president of pricing. “Minimum charges in shorter haul lanes will be increased slightly while minimum shipments in longer haul lanes will be reduced.”
“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 4.4%,” add Rick Keeler, senior vice president of pricing and strategic development. “Additional increases will be taken on Alaska, Hawaii, Puerto Rico, the Caribbean and Mexico.”
The tariffs affected by the January 18, 2010, increase are the ODFL 559/555 and the 505 Canadian tariffs. According to Keeler, “The increase is necessary to offset higher costs as a result of new equipment, new service centers, state-of-the-art technology, insurance costs as well as wages and benefits.”
Domestically, OD provides complete national coverage to all 48 continental states and the District of Columbia with regional service in the Southeast, Central States, Gulf States, Northeast, Midwest, Pacific Northwest and Western regions of the country.