Thursday, June 20, 2013

LTL Road Haulage and Forwarding Outfit Old Dominion Freight Line Introduces Domestic Rate Increase

80 Year Old Company Continues to Expand - but at a Cost
Shipping News Feature

US – Less than truck load (LTL) carrier Old Dominion Freight Line (ODFL) which provides nationwide cargo services as well as international forwarding services, has introduced ‘modest increases’ to its domestic road haulage rate tariff with the actual percentage hike dependent on various factors including routes and distance. Reports put the average increase however at just below 5% with the tariffs affected ODFL 559/555, 670 and the 505 Canadian tariffs. A company statement says the increased income is necessary to pay for higher road tolls and to offset the rising costs of new equipment and insurance, while preserving competitive wages and benefits for all its employees, none of whom are believed to be unionised. Todd Polen, Old Dominion’s Vice President of pricing, commented:

“We are sensitive to our customers’ budgets, and we are always reluctant to raise our rates. This increase is in line with our long term pricing philosophy and involves a restructure that provides for an increase based on length of haul, rather than a traditional across the board increase.”

Earlier this month ODFL predicted an increase in its haulage trade this year, upping its earlier forecasts by half a percent and saying it expects tonnages to rise by 5 – 5.5% as against the second quarter of 2012. Certainly the company has seen growth in some areas with the relocation this week of its Fort Wayne, Indiana, Service Centre to new premises which will give the company twice the capacity for handling freight.

The new centre is located adjacent to Interstate 69 and is fitted with over seventy loading doors with a staff of forty four and serving a wide area which covers destinations in three states, Indiana, Ohio and Michigan. Randy Barton, manager of the new facility, said:

“The improved facility allows OD to maintain its strong rate of growth in Fort Wayne. We look forward to continuing our business philosophy of delivering premium, on-time service to our customers.”

Throughout 2013 Old Dominion has been recognized with numerous awards: Forbes Magazine named Old Dominion as one of America's 100 Most Trustworthy Companies; NASSTRAC honoured the company as 2013 Carrier of the Year; and Mastio & Company ranked Old Dominion as No. 1 National LTL carrier for the third consecutive year in a row.