Old Dominion to raise rates
Less-than-truckload carrier Old Dominion Freight Line said Monday it will increase its base rates from Sept. 6.
'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, vice president of pricing for Old Dominion.
The tariffs affected are the ODFL 559/555 and 505 Canadian tariffs, with the increase also providing 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' Polen said. 'Similar increases will also be taken on Alaska, Hawaii, Puerto Rico, Caribbean, Canada and Mexico.'
Polen said the increases are primarily driven by customers’ requests for more capacity and services from Old Dominion, and that the company wants to ensure its service quality doesn’t drop with such an expansion.
'Our customers have asked for more capacity and more opportunity to take advantage of the products and services OD has to offer,” he said. “In order to meet that 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.'