Old Dominion Freight Announces Rate Increase

Old Dominion Freight Line, Inc. (NASDAQ: ODFL) has announced two pricing initiatives that will be implemented effective November 30, 2015:  (i) a general rate increase (GRI) of 4.9% applicable to rates established under the existing ODFL 559 tariff, and (ii) a new, “re-indexed” base tariff, the ODFL 550, which eliminates the fuel surcharge when the average U.S. Department of Energy (DOE) price of diesel fuel is under $3.00 per gallon.

Stated Todd Polen, Old Dominion’s Vice President of Pricing. “The GRI also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes.”

The company further noted that it has “listened to our customers and developed a new ODFL 550 base tariff that we expect will make 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 through the elimination of a traditional fuel surcharge until such time as the price of diesel fuel reaches the average DOE price of $3.00 per gallon.”

Old Dominion Freight Line is a leading, less-than-truckload (“LTL”), union-free company. OD offers regional, inter-regional and national LTL service.

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