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Old Dominion announces base rate increase
Old Dominion Freight Line, Inc. has announced a modest increase to its base rates, effective July 1.
The exact increase may differ for customers based on a number of variables, including the lanes utilized and the distance shipments move. However, the increase is approximately 4.9 percent.
“We are sensitive to our customers’ budgets, and we are always reluctant to raise our rates,” said Todd Polen, Old Dominion’s vice president of pricing. “This increase is in line with our long-term pricing philosophy and involves a restructure that provides for an increase based on length of haul rather than a traditional across the board increase.”
The increased rate provides for a nominal increase in intrastate, interstate and cross-border lane charges. The new rate will also offset the rising costs of new equipment and insurance, while preserving competitive wages and benefits for employees.
“We are committed to delivering premium transit service, award winning technology and best-in-class delivery service at a fair and reasonable price,” Polen added. “To meet the demands our customers have for more capacity and additional value added products and services, we must continue to build our network and systems and hire the best talent in the industry.”
“Our philosophy is to take a fair and equitable approach that minimizes the impact to our customers’ budgets, yet deliver on our promises to the marketplace and Old Dominion’s stakeholders,” Polen said. “We believe the increase – which is less than increases many other carriers have imposed – is essential for us to continue to provide our customers with an industry leading service.”
The tariffs affected by the increase are the ODFL 559/555, 670 and the 505 Canadian tariffs.
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