Tuesday, August 30, 2011

Old Dominion Announces Rate Increase


THOMASVILLE, North Carolina (Aug. 22, 2011) – Todd Polen, vice president of pricing for Old Dominion Freight Line Inc., announced that the organization would be increasing its base rates effective Sept. 6, 2011.
“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. The tariffs affected by the Sept. 6, 2011, increase are the ODFL 559/555 and the 505 Canadian tariffs. The rate increase will also provide 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 added: “At OD, we are committed to delivering on a value proposition that promises excellent transit service, award winning technology and best-in-class claims free delivery at a fair and reasonable price. As a result of that commitment, our customers have asked for more capacity and more opportunity to take advantage of the products and services OD has to offer. 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. We believe the increase is essential in order to continue to provide our customers with an industry leading value proposition.”
For more information about Old Dominion, visit www.odfl.com or call (800) 432-6335.

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