Shippers are asking for multiyear contracts, ODFL says
Some shippers want to negotiate LTL rates now rather than absorb a steep increase later, and Old Dominion execs read that as a...
Large shippers are asking Old Dominion Freight Line (CCJ Top 250, No. 9) for multiyear contracts, which the company’s executives view as a sign of improving demand.
Old Dominion President and CEO Kevin Freeman said during the company’s earnings call this week that contracts typically run two years and cover base-rate increases, with no volume commitments. He added that some larger customers are “seeing the future bright” and want to negotiate rates upfront so they don’t absorb a steep increase if the economy inflects.
Chief Financial Officer Adam Satterfield said shippers are “trying to get ahead of some things that they foresee changing in the space overall.”
Old Dominion reported a 26.9% increase in third-quarter net income to $343.7 million, up from $270.9 million a year earlier. Revenue rose 13.1% to $1.59 billion from $1.41 billion in the third quarter of 2025. The less-than-truckload (LTL) carrier leaned on disciplined pricing and cost control while demand stabilized.
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