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Old Dominion Freight Line will raise its rates by an average of 4.9% next month, the carrier was announced Monday.
The general increase — at the same rate as January’s price increase — takes effect on December 4. That’s nearly a month earlier than the Thomasville, North Carolina-based carrier held its 2022 year-end rate hike and marks the company’s second rate hike 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 salary and benefit packages, according to Todd Polen, Vice President of Billing Services.
In a statement, Polen said the increase is “in line with our financial projections and expectations for the anticipated operating environment” and will ensure continued improvements to Old Dominion’s network and service systems.
“We remain committed to delivering our high-value offering of on-time, no-claims service at a fair price, as well as exceeding customer expectations and delivering on their promises,” said Polen.
The rate increase applies to rates determined under Old Dominion’s 559, 670 and 550 tariffs.
Its impact will vary depending on individual shipping 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.
However, Old Dominion’s rates won’t jump north like Saia’s will. Competitor Johns Creek, based in Georgia, which also announced it would raise its increase on Dec. 4, plans to raise interest rates an average of 7.5%.
FedEx Freight will raise rates from 5.9% to 6.9% for LTL service on Jan. 1; according to the company.