Old Dominion Freight Line, Inc. announced the organization will be increasing its base rates 4.3 percent effective May 1, 2014.
“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,” said Todd Polen, Old Dominion’s vice president of pricing. “The tariffs affected by the May 1, 2014 increase are the ODFL 559/555, 670 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 4.3 percent.”
Polen explained that the increase is necessary to offset the rising cost of new equipment, escalating insurance costs, securing new service center capacity, technology development, and staff support.