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GAIN CONSULTING

Old Dominion Freight Line Announces 4.9% General Rate Increase

  • Kelsea Ansfield
  • 4 days ago
  • 3 min read

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In a move reflecting ongoing industry pressures, Old Dominion Freight Line, Inc. (ODFL), one of North America's premier LTL carriers, has announced a 4.9% general rate increase (GRI) effective November 3, 2025. This adjustment applies to rates under ODFL's existing 559, 670, and 550 tariffs and includes nominal increases in minimum charges for intrastate, interstate, and cross-border lanes.


At Gain Consulting, we’re closely monitoring carrier rate actions like this to help our clients navigate rising costs while maintaining service excellence. As trusted advisors to shippers and 3PLs, we break down the details, implications, and proactive strategies to mitigate impact in this dynamic freight market.


Key Details of ODFL's Rate Increase

  • Effective Date: November 3, 2025

  • Increase Amount: 4.9% across class tariffs

  • Affected Tariffs: ODFL 559, 670, and 550

  • Minimum Charges: Nominal increases for all lane types (intrastate, interstate, cross-border)

  • Expected Overall Impact: Approximately 4.9%, varying by shipment lanes and distance


Todd A. Polen, ODFL's Vice President of Pricing Services, emphasized the carrier's commitment: "At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price. This GRI will... partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages."


ODFL's focus on yield management ensures the increase aligns with long-term sustainability while preserving their industry-leading service metrics.


Why Now? Understanding the Cost Drivers

This GRI comes amid persistent inflationary pressures in logistics:

  • Real Estate: Higher costs for service center expansions and maintenance

  • Equipment: Investments in modern, fuel-efficient fleets

  • Technology: Enhanced tracking, automation, and visibility systems

  • Labor: Competitive wages and benefits to attract/retain drivers and staff

These investments directly support ODFL's 99.7% on-time delivery rate and claims ratio under 0.1%—benchmarks that justify premium pricing for shippers prioritizing reliability.


Impact on Shippers: What to Expect

The 4.9% GRI will affect customers differently based on:

  • Lane Density: High-volume, short-haul lanes may see moderated impact

  • Shipment Mix: Class-based pricing means lighter/denser freight varies

  • Volume Contracts: Negotiated rates may include protections

  • Minimum Charges: Small shipments face proportional increases

Pro Tip: Shippers with ODFL exposure should review Q4 2025 budgets immediately. Historical data shows carriers like ODFL often follow GRIs with fuel surcharge adjustments.


Gain Consulting's 5-Step Action Plan

Don't let this GRI erode your margins. Here's how Gain Consulting helps clients respond:

  1. Rate Impact AnalysisModel the exact financial hit using your shipment data—our clients see 10-15% savings through targeted adjustments.

  2. Contract Review & RenegotiationLeverage volume commitments for GRI offsets. 88% of shippers in the 2025 3PL Study report better outcomes with strategic carrier alignment.

  3. Modal DiversificationBlend ODFL's premium service with cost-effective alternatives like the newly unified AAA Cooper Transportation (effective Jan 1, 2026).

  4. Lane OptimizationConsolidate shipments to minimize minimum charge exposure—reducing small-package costs by up to 20%.

  5. Technology IntegrationUse ODFL's enhanced systems with your TMS for real-time rate visibility and proactive bidding.


Market Context: A Balanced Perspective

ODFL's 4.9% GRI aligns with industry trends:

  • Cass Freight Index: Q3 2025 shipment volumes flat, but expenses up 6.2%

  • TSI Freight Report: August 2025 volumes stagnant, pressuring carrier yields

  • Competitor Actions: Similar GRIs from Saia (5.9%) and XPO (4.5%) in recent months

Yet, ODFL's operational excellence—#1 in LTL customer satisfaction (2025 J.D. Power)—provides unmatched value. Shippers trading service for savings risk higher claims and delays.


Partner with Gain Consulting for Rate Resilience

In a market where 75% of shippers seek cost reductions through partnerships (2025 3PL Study), proactive management is key. Gain Consulting delivers:

  • Complimentary GRI Impact Assessments

  • Benchmarking Against 50+ Carriers

  • Custom RFP Strategies

  • Sustainability-Linked Savings


Ready to offset ODFL's GRI and beyond? Schedule your free consultation today and discover how we’ve saved clients millions in freight spend.


For more on freight market trends, check our recent posts on AAA Cooper's unification and August 2025 TSI insights.


ODFL press release: Business Wire

 
 
 

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