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Old Dominion Freight Line (NASDAQ:ODFL) announced on Monday a general rate increase of 4.9% applicable to rates established under the existing ODFL 559, 670, and 550 tariffs. The company said the rate increase will be effective on December 4.
“In line with our economic forecast and expectations for the anticipated operating environment, OD is implementing a general rate increase to ensure the continued enhancement of our high-quality service network and systems,” noted Old Dominion Freight Line Vice President Todd Polen.
Old Dominion Freight Line (ODFL) indicated that it remains committed to providing a premium value proposition of on-time, claims-free service at a fair price as well as exceeding customer expectations and delivering on their promises. The rate increases aims to partially offset rising costs associated with new real estate and expansion projects, new equipment, technology investments, and competitive employee wage and benefit packages.
“While the GRI’s impact will vary based on individual shipment lanes and distances traveled, it aligns with our long-term yield management strategy. The GRI also includes nominal increases in minimum charges for intrastate, interstate, and cross-border lanes.”