Old Dominion Freight Line (NASDAQ: ODFL) said Thursday it will implement a 4.9% general rate increase (GRI) to class tariffs beginning Jan. 3.
The size and timing of the carrier’s rate hike are in line with the GRI it issued last year.
“The general rate increase is based on the Company’s economic forecast and expectations for the operating environment,” Todd Polen, VP of pricing, stated in a news release. “We must continue enhancing our high-quality service network and systems to meet and exceed our customers’ expectations and deliver on our promises.”
Old Dominion’s customers will also see “a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes.”
Across the industry, GRIs are coming in level or a little light of last year’s increases as freight demand has moderated from the all-time highs that extended into early 2022. Recent updates from carriers show that year-over-year tonnage declines accelerated during November. Old Dominion and Saia (NASDAQ: SAIA) reported high-single-digit declines while Forward Air (NASDAQ: FWRD) and Yellow (NASDAQ: YELL) recorded declines of roughly 20% or more during the month.
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