Old Dominion Freight Line announced Monday a 4.9% general rate increase to various tariff codes effective Oct. 5. The increase comes one month earlier than last year’s hike, which was also moved up by a month.
Less-than-truckload carriers usually implement GRIs for standard tariff codes annually. The percentage increase represents an expected average of adjustments to base rates across different lanes and weight classes. The increases are used to offset cost inflation and fund capex projects.
Last year, Old Dominion’s (NASDAQ: ODFL) GRI was also expected to average 4.9%.
“To continue meeting our customers’ expectations and supporting the commitments we make to them, we must continue to invest in the strength, capacity, and efficiency of our service network and technology systems,” said Greg Lawrence, vice president of pricing services, in a news release. “As a result, this GRI is designed to help offset continued cost pressures related to real estate, equipment, technology, and competitive wages and benefits for our employees.”
Other public carriers have continued installing GRIs ahead of the traditional one-year schedule.
ArcBest (NASDAQ: ARCB) again pulled forward its GRI this year. It implemented a 5.9% hike for LTL services at both of its business units on June 22. This year’s increase was approximately six weeks ahead of the one-year anniversary of last year’s increase. The company has been following an 11-month cadence in recent years.
Saia (NASDAQ: SAIA) implemented a 7.1% general rate increase on July 6. The increase was 120 basis points higher and 3 months earlier than last year’s increase.
This year’s GRIs are occurring alongside a stronger industrial complex.
The Institute for Supply Management’s Manufacturing PMI remained in expansion territory for an eighth consecutive month in August. The 54.6 reading was just 100 bps below a four-year high set in July. (A reading above 50 signals expansion, while one below 50 indicates contraction.)
The new orders subindex—an indicator of future activity—fell 3 percentage points but remained in growth mode at 53.7. Carrier tonnage typically lags the index by three months.
Why it matters? Old Dominion’s latest GRI shows LTL carriers are continuing to move up implementation schedules as the industry’s favorable pricing thesis remains intact. The increases also show how carriers are addressing rising real estate, equipment and wage costs as the industry enters a growth cycle amid solid manufacturing demand.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now