Old Dominion Freight Line has pulled forward its general rate increase (GRI) to take effect on October 14, 2024, implementing a 4.9% average increase across its less-than-truckload (LTL) network.
LTL carriers accelerate pricing actions
The move follows a broader industry trend, as multiple LTL carriers have accelerated their 2024 GRIs in response to tightening capacity and rising operational costs. Old Dominion’s October 14 effective date marks a shift from its originally scheduled November 1, 2024, implementation timeline — a pull-forward of 18 days.
SONAR data, the national LTL pricing index rose 3.2% year-over-year in August 2024, with spot market rates up 7.1% compared to the same period last year. Carriers including Estes Express Lines and AAA Coohave also announced GRIs effective in early October 2024.
The 4.9% increase applies to standard freight shipments and includes adjustments to fuel surcharge methodology, which will be updated to reflect the U.S. Energy Information Administration’s (EIA) weekly diesel price averages beginning October 14, 2024.
Market context and timing
Old Dominion’s decision coincides with the start of peak shipping season and comes just weeks before the U.S. Department of Transportation’s new Hours of Service (HOS) rule takes effect on October 28, 2024 — a regulatory change expected to further constrain driver availability.
FreightWaves’ analysis indicates that LTL carrier operating ratios improved to 87.4% in Q2 2024, up from 86.1% in Q1 2024, reflecting stronger yield management and cost discipline. The company reported $1.42 billion in revenue for the quarter ended June 30, 2024.
Industry observers note that this is the second GRI Old Dominion has announced in 2024; its first, implemented on April 1, 2024, raised base rates by 4.5%. The cumulative impact of both increases represents a compounded average rise of 9.6% over six months.
Source: FreightWaves
Compiled from international media by the SCI.AI editorial team.
