Old Dominion to implement rate increases based on routes, distances, with overall impact about 4.9%, effective Sept. 6
THOMASVILLE, North Carolina
August 23, 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."
About Old Dominion Freight Line
Old Dominion Freight Line Inc. (NASDAQ:ODFL - News) is a national less-than-truckload motor carrier providing one-to-five day service among six regions in the United States and next-day and second-day service within these regions. Through its four product groups, OD-Domestic, OD-Expedited, OD-Global and OD-Technology, the Company offers an array of innovative products and services that provide direct service to 48 states within the Southeast, Gulf Coast, Northeast, Midwest, Central and West regions of the country. In addition to domestic less-than-truckload services, the Company offers assembly and distribution services as well as LCL and FCL delivery services to and from all of North America, Central America, South America and the Far East. The Company also offers a broad range of expedited and logistical services for both its domestic and global markets, and for more than 75 years, Old Dominion has been helping the world keep promises. More information can be found at www.odfl.com.