Old Dominion Freight Line, Inc. Announces General Rate Increase
Old Dominion Freight Line (ODFL) has announced a 4.9% general rate increase (GRI) effective December 2, 2024. The increase will apply to rates under ODFL 559, 670, and 550 tariffs. The GRI aims to offset rising costs in real estate, equipment, technology investments, and employee compensation. The company states this adjustment aligns with their yield management philosophy and will affect customers differently based on shipping lanes and distances, including nominal increases in minimum charges for intrastate, interstate, and cross-border lanes.
Old Dominion Freight Line (ODFL) ha annunciato un incremento generale delle tariffe del 4,9% (GRI) con effetto dal 2 dicembre 2024. L'aumento si applicherà alle tariffe sotto le tariffe ODFL 559, 670 e 550. Il GRI mira a compensare l'aumento dei costi nel settore immobiliare, nelle attrezzature, negli investimenti tecnologici e nelle retribuzioni dei dipendenti. L'azienda dichiara che questo adeguamento si allinea alla loro filosofia di gestione del rendimento e influenzerà i clienti in modo diverso a seconda delle rotte di spedizione e delle distanze, inclusi aumenti nominali delle spese minime per le rotte intrastatali, interstatali e transfrontaliere.
Old Dominion Freight Line (ODFL) ha anunciado un aumento general de tarifas del 4,9% (GRI) que será efectivo el 2 de diciembre de 2024. El aumento se aplicará a las tarifas bajo las tarifas ODFL 559, 670 y 550. El GRI tiene como objetivo compensar el aumento de costos en bienes raíces, equipos, inversiones tecnológicas y compensación a empleados. La empresa indica que este ajuste se alinea con su filosofía de gestión de ingresos y afectará a los clientes de manera diferente según las rutas de envío y distancias, incluidos aumentos nominales en los cargos mínimos para las rutas intrastatales, interestatales y transfronterizas.
Old Dominion Freight Line (ODFL)가 2024년 12월 2일부터 시행되는 4.9% 일반 요금 인상(GRI)을 발표했습니다. 이 인상은 ODFL 559, 670 및 550 요금에 적용됩니다. GRI는 부동산, 장비, 기술 투자 및 직원 보상 비용 증가를 상쇄하는 것을 목표로 합니다. 회사는 이 조정이 그들의 수익 관리 철학과 일치하며, 고객에게는 배송 경로와 거리별로 다르게 영향을 미칠 것이라고 밝혔습니다. 여기에는 주 내, 주 간 및 국경 간 경로에 대한 최소 요금의 명목상 인상이 포함됩니다.
Old Dominion Freight Line (ODFL) a annoncé une augmentation générale des tarifs de 4,9 % (GRI) qui entrera en vigueur le 2 décembre 2024. Cette augmentation s'appliquera aux tarifs ODFL 559, 670 et 550. Le GRI vise à compenser l'augmentation des coûts liés à l'immobilier, à l'équipement, aux investissements technologiques et à la rémunération des employés. L'entreprise déclare que cet ajustement est en accord avec sa philosophie de gestion des rendements et influencera les clients différemment en fonction des itinéraires de livraison et des distances, notamment par des augmentations nominales des frais minimums pour les itinéraires intrastat, interétat et transfrontaliers.
Old Dominion Freight Line (ODFL) hat eine allgemeine Tariferhöhung von 4,9% (GRI) angekündigt, die am 2. Dezember 2024 in Kraft treten wird. Die Erhöhung gilt für die Tarife ODFL 559, 670 und 550. Das GRI soll steigende Kosten im Immobiliensektor, für Geräte, Technologieinvestitionen und Mitarbeitervergütungen ausgleichen. Das Unternehmen erklärt, dass diese Anpassung mit ihrer Philosophie des Ertragsmanagements übereinstimmt und die Kunden je nach Versandrouten und Entfernungen unterschiedlich betroffen sein werden, einschließlich nominaler Erhöhungen der Mindestgebühren für innerstaatliche, staatenübergreifende und grenzüberschreitende Routen.
- Implementation of 4.9% rate increase to improve revenue
- Strategic investment in service network and technology improvements
- Proactive approach to offset rising operational costs
- Potential risk of customer loss due to higher rates
- Increased pricing during competitive market conditions
Insights
The announced
The GRI's impact extends beyond simple revenue enhancement - it reflects ODFL's strong market position and pricing power in the less-than-truckload (LTL) sector. Historical data shows ODFL has successfully implemented similar increases, maintaining both market share and profitability. The focus on minimum charge increases for various lanes suggests a comprehensive approach to yield management.
The increase aligns with industry-wide trends of rising costs in real estate, equipment, technology and labor. With ODFL's premium service reputation and high on-time delivery rates, this pricing action should translate to improved operating margins while maintaining competitive positioning.
Todd A. Polen, Old Dominion Freight Line’s Vice President – Pricing Services, commented, “The general rate increase is based on the Company’s economic forecast and expectations for the operating environment. We must continue enhancing our high-quality service network and systems to meet and exceed our customers’ expectations and deliver on our promises. At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price. This GRI will affect our class tariffs and is intended to partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages. Although the GRI will impact each customer differently based on specific shipment lanes and distance traveled, it is consistent with our long-term yield management philosophy and the overall impact of the increase is anticipated to be approximately 4.9 percent. The GRI also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes.”
For more information about Old Dominion Freight Line, visit www.odfl.com or call (800) 432-6335.
About Old Dominion Freight Line, Inc.
Old Dominion Freight Line, Inc. is one of the largest North American less-than-truckload (“LTL”) motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental
View source version on businesswire.com: https://www.businesswire.com/news/home/20241118502890/en/
Todd A. Polen
VP – Pricing Services
(336) 822-5160
Source: Old Dominion Freight Line, Inc.
FAQ
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