Old Dominion Freight Line, Inc. Announces General Rate Increase

Rhea-AI Summary

Old Dominion Freight Line (ODFL) announced a 4.9% general rate increase effective January 3, 2022. This increase will impact rates established under existing tariffs 559, 670, and 550. According to Todd A. Polen, Vice President of Pricing Services, the GRI is designed to offset rising costs including real estate, equipment, technology investments, and employee wages. The increase will affect customers based on specific lanes and distances but is in alignment with the company's long-term yield management strategy.

Positive

• Rate increase of 4.9% aims to offset rising operational costs.
• Alignment with long-term yield management philosophy.

Negative

• Potential negative customer reactions to increased rates.
• Increase may impact competitive positioning if rivals do not follow suit.

THOMASVILLE, N.C.--(BUSINESS WIRE)-- Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today announced a general rate increase (GRI) of 4.9 percent applicable to rates established under the existing ODFL 559, 670, and 550 tariffs, effective January 3, 2022.

Todd A. Polen, Old Dominion’s Vice President – Pricing Services, commented, “At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price. To satisfy our customers’ expectations and deliver on the promises we have made, we must continue to enhance our high-quality service network and systems. 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, 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 United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211216005010/en/

Todd A. Polen

VP – Pricing Services

(336) 822-5160

Source: Old Dominion Freight Line, Inc.

FAQ

What is the general rate increase for Old Dominion Freight Line (ODFL) announced?

Old Dominion Freight Line announced a 4.9% general rate increase effective on January 3, 2022.

What tariffs are affected by the new rate increase at ODFL?

The 4.9% rate increase will apply to tariffs 559, 670, and 550.

Why is Old Dominion implementing a rate increase?

The rate increase is intended to offset rising costs such as real estate, new equipment, and competitive employee wages.

How will the rate increase impact customers of ODFL?

The impact will vary by customer depending on specific shipment lanes and distances.

What is Old Dominion Freight Line's strategy related to pricing?

The rate increase is consistent with Old Dominion's long-term yield management philosophy.