Old Dominion Freight Line will raise its rates by an average of 4.9% next month, the carrier announced Monday.
The general increase — at the same rate as its January price hike — is effective Dec. 4. That’s nearly a month sooner than the Thomasville, North Carolina-based carrier executed its year-end rate increase in 2022, and it marks the second rate increase by the company in 2023.
The increase seeks to partially offset rising costs associated with new real estate and expansion projects, new equipment, technology investments, and competitive employee wage and benefit packages, according to Todd Polen, VP of pricing services.
In a statement, Polen said the increase is “in line with our economic forecast and expectations for the anticipated operating environment” and will ensure ongoing enhancements to Old Dominion’s service network and systems.
“We remain committed to providing our premium value proposition of on-time, claims-free service at a fair price as well as exceeding customer expectations and delivering on their promises,” Polen said.
The rate increase applies to rates established under Old Dominion’s 559, 670 and 550 tariffs.
Its impact will vary based on individual shipment lanes and distances traveled, according to the company. It covers nominal increases in minimum charges for intrastate, interstate and cross-border lanes, the LTL provider said.
Old Dominion’s rates won’t soar north the way Saia’s will, though. The Johns Creek, Georgia-based competitor, which also announced it would move up its increase to Dec. 4, plans to boost rates by an average of 7.5%.
FedEx Freight will increase rates 5.9% to 6.9% for the LTL service on Jan. 1, according to the company.