Old Dominion Freight Line (ODFL) Announces General Rate Increase of 4.9%
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Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced a general rate increase (GRI) of 4.9% applicable to rates established under the existing ODFL 559, 670, and 550 tariffs effective September 26, 2016.
Todd Polen, Old Dominion's vice president of pricing commented, "At Old Dominion, we are committed to delivering our superior value proposition of on-time, claims-free service at a fair price. In order 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. Our GRI will affect our class tariffs and is intended to partially offset the rising costs of new equipment, real estate, 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 4.9 percent. The GRI also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes."
"Our yield management philosophy is to take a fair approach that minimizes the impact to our customers' budgets while also supporting the value proposition that we promise to deliver each and every day," continued Mr. Polen. "In keeping with this philosophy, last year we developed a new ODFL 550 base tariff that has gained momentum and made it easier for customers to utilize our services. The ODFL 550 tariff is a re-indexed tariff option that is designed to simplify rate estimates by eliminating the traditional fuel surcharge as long as the average DOE price of diesel fuel is under $3.00 per gallon. We also recently added a new feature to the ODFL 550 tariff that enables customers to obtain a simplified through rate to Alaska, rather than one charge to Washington and another charge from Washington to Alaska. This change reflects both our continued commitment to simplifying our customers' pricing programs and our ability to innovate in order to satisfy customer demand."
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