Old Dominion Freight Line Announces 4.9% General Rate Increase to Support Continued Service Excellence and Network Investment
Old Dominion Freight Line, Inc. one of the most respected names in less-than-truckload (LTL) transportation and logistics, announced today a general rate increase (GRI) of 4.9 percent, effective November 3, 2025. The rate adjustment will apply to tariffs currently established under ODFL 559, 670, and 550, and reflects the company’s ongoing commitment to maintaining premium service standards, investing in infrastructure, and rewarding its workforce competitively in a dynamic logistics environment.
The decision underscores Old Dominion’s dedication to balancing service quality, operational sustainability, and cost efficiency amid persistent economic pressures and industry-wide inflationary trends. The GRI is designed to ensure the company’s long-term financial strength while providing customers with continued reliability, precision, and capacity in an increasingly demanding supply chain landscape.
A Strategic Adjustment to Sustain Excellence
Announcing the update, Todd A. Polen, Vice President – Pricing Services at Old Dominion Freight Line, emphasized that the rate increase is essential to supporting the company’s mission of providing on-time, claims-free, and value-driven service.
“At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price,” Polen stated. “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. This GRI will affect our class tariffs and is intended to partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages.”
According to Polen, the 4.9 percent adjustment represents a measured and strategic response to cost escalations across multiple operational fronts. These include higher property and construction costs for expanding the company’s extensive terminal network, significant investments in technology modernization, and the need to retain top talent in a competitive labor market.
While the overall impact of the rate increase is estimated at 4.9 percent, the specific effect on individual customers will vary depending on factors such as shipment lanes, distance traveled, and regional cost differentials. The adjustment will also include a nominal increase in minimum charges applicable to intrastate, interstate, and cross-border movements, ensuring that Old Dominion continues to offer fair, sustainable pricing while maintaining industry-leading performance metrics.
Investing in Network Expansion and Innovation
Over the past several years, Old Dominion Freight Line has pursued a long-term strategic investment plan aimed at strengthening its terminal infrastructure, expanding capacity, and upgrading its technology platforms. These initiatives are designed to improve efficiency, visibility, and reliability across the company’s nationwide network.
By reinvesting revenues from rate adjustments like the current GRI, Old Dominion has been able to open new service centers, modernize existing facilities, and deploy cutting-edge logistics technology, including advanced routing systems and digital customer tools. The company’s focus on modernization has enabled customers to benefit from real-time tracking, enhanced freight visibility, and seamless integration with digital supply chain platforms.
These investments have also contributed to Old Dominion’s industry-leading record for on-time performance and low claims ratios. As logistics networks across North America become more complex and customer expectations for delivery speed and reliability continue to rise, Old Dominion’s consistent reinvestment ensures it remains positioned as a preferred partner for businesses seeking dependable freight solutions.
Balancing Customer Value and Financial Sustainability
Old Dominion Freight Line’s general rate increases are part of a broader yield management strategy that ensures the company can maintain its high standards without compromising customer value. Rather than adopting sudden or large-scale pricing shifts, Old Dominion implements incremental, transparent adjustments that reflect both operational realities and long-term business goals.
The 4.9 percent GRI for 2025 is consistent with this approach. It is intended not only to cover rising operating expenses but also to ensure that customers continue to receive premium-level service backed by robust infrastructure and innovation.
Old Dominion’s pricing philosophy centers on three key principles:
- Service Quality First: Maintaining an unmatched record of on-time and claims-free deliveries.
- Network Investment: Ensuring continued reinvestment in facilities, vehicles, and digital systems.
- Employee Excellence: Offering competitive wages and benefits to attract and retain the industry’s best talent.
Together, these principles create a sustainable model that supports long-term customer relationships and operational excellence.
Responding to Industry and Economic Dynamics
The LTL freight sector continues to experience cost pressures stemming from multiple fronts — infrastructure expansion, fuel prices, real estate inflation, and technology upgrades. In recent years, the industry has also faced challenges linked to labor shortages and equipment availability, both of which have influenced operating costs.
By implementing a general rate increase, Old Dominion aims to stay ahead of these challenges and continue providing stable, high-quality services to its customers. The company’s strong balance sheet and prudent financial management allow it to invest steadily in its people and assets, even amid economic volatility.
In addition, Old Dominion’s GRI aligns with its broader strategy to enhance operational resilience while maintaining pricing integrity. As customers increasingly prioritize reliability and transparency in their supply chain partners, Old Dominion’s disciplined approach to cost management helps ensure the company remains both competitive and trustworthy.
Strengthening Customer Partnerships
For Old Dominion, the GRI is not simply a pricing adjustment — it is a reaffirmation of the company’s long-standing partnership with its customers. The company’s customers span diverse industries including manufacturing, retail, automotive, and technology, all of which depend on precise, time-sensitive logistics solutions.
By ensuring financial sustainability and service quality through this rate increase, Old Dominion reinforces its ability to deliver the speed, accuracy, and dependability that customers expect. The company continues to communicate openly with customers about rate changes and works collaboratively to identify cost-effective solutions tailored to specific shipping needs.
Polen added that the rate adjustment should be viewed in the context of Old Dominion’s long-term reliability and value. “While each customer may experience the impact of the GRI differently depending on their shipping patterns and distances, the increase supports our continued investment in people, technology, and equipment — all essential to maintaining the superior service our customers trust us to deliver,” he said.
A Continued Commitment to Excellence
Old Dominion Freight Line’s announcement of its 2025 GRI comes at a time when many transportation providers are re-evaluating their cost structures and strategic investments. The company’s proactive stance reflects its confidence in the future of the LTL sector and its ongoing leadership in operational excellence.
Through careful management, continuous investment, and a steadfast commitment to its employees and customers, Old Dominion continues to demonstrate why it remains a benchmark for performance and reliability in freight transportation.
The company’s record speaks for itself: consistent profitability, superior service metrics, and one of the most modern fleets in the industry. With this latest rate adjustment, Old Dominion is positioning itself for sustained growth, ensuring it can continue to meet the evolving needs of customers and the logistics ecosystem at large.
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) is a leading less-than-truckload (LTL) carrier, providing regional, inter-regional, and national LTL services through a single integrated organization. The company also offers expedited transportation, container drayage, and supply chain consulting. With a reputation built on precision, reliability, and customer service excellence, Old Dominion operates one of the most efficient networks in North America, serving thousands of customers across the United States, Canada, and Mexico.
In summary, the announced 4.9 percent general rate increase, effective November 3, 2025, represents Old Dominion Freight Line’s balanced approach to sustaining excellence. By aligning pricing with operational realities and future investment goals, the company reaffirms its unwavering commitment to safety, reliability, and customer satisfaction — the core values that have defined its leadership in the freight industry for decades.