ODFL issues solid second quarter update

Thomasville, N.C.-based national less-than-truckload (LTL) carrier Old Dominion Freight Line (ODFL) provided guidance for key operating metrics for the second quarter this week.

ODFL reported that revenue per day increased 47.6% annually, driven by a 28.3% gain in daily LTL tonnage, as well as LTL revenue per hundredweight heading up. The company said that the change in LTL tons per day was due to a 32.6% increase in LTL shipments per day that was partially offset by a 3.2% decrease in LTL weight per shipment.

And on a quarter-to-date period, LTL revenue per hundredweight and LTL revenue per hundredweight, excluding surcharges, headed up 15.3% and 11.1%, respectively, annually.

“Old Dominion produced strong revenue growth for the first two months of the second quarter due to an increase in demand for our services and the ongoing improvement in the domestic economy,” said Greg C. Gantt, President and Chief Executive Officer of Old Dominion, in a statement. “Our quarter-to-date revenue performance is above our normal sequential trend, which reflects our ability to win market share by delivering superior service at a fair price to our customers. In addition, we have available capacity within our service center network due to the significant investments we have made over many years. We remain committed to further expanding the capacity of both our workforce and our service center network this year, and we are confident that the continued execution of our strategic plan can produce long-term gains in market share and shareholder value.”

In early February, ODFL announced it is expanding its domestic footprint through the addition of nine service centers in new and existing markets, which ups the number of its service centers to 245.

Company officials said that these new and renovated service centers strategically placed for operational efficiency and are aligned with the OFDL’s long-term strategic plan, noting that the investment in each market will support capacity needs, improve shipping time and enhance delivery flexibility, allow ODFL to better serve customers as demand continues to grow amid the COVID-19 pandemic.

What’s more, ODFL added that each service center is constructed with best-in-class facilities to improve operational efficiencies. And ODFL’s recent investments in innovative technology, such as tools for real-time track and traceability, allow it to adapt to meet evolving customer needs while maintaining its premium service, the company said.