LTL carrier Old Dominion Freight Line (ODFL) plans to increase its base rates 4.9% effective Aug. 6, though it cautioned the exact increase may differ for customers based on a number of variables, including the lanes utilized and the distance shipments move.
“We’re naturally sensitive to our customers’ budgets,” noted Todd Polen, Old Dominion’s vp-pricing, in a statement “Raising our rates is something we do reluctantly and after considerable analysis. “[But] this modest increase will enable us to absorb the rising cost of new equipment and escalating insurance costs while maintaining competitive wages and benefits for our employees.”
He added that he tariffs affected by the increase are the ODFL 559/555 and the 505 Canadian tariffs. The rate increase will also provide for a nominal increase in intrastate, interstate or cross-border lane charges, Polen said.
Carriers continue to plan rate increases this year despite the sluggishness of the overall economy, according to a recent survey, and Old Dominion’s rate boost follows that of fellow LTL carriers YRC Freight and FedEx Freight though its increase is lower than that imposed by its competitors.