Old Dominion Freight Line reports solid fourth 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 month of November this week.

ODFL reported that revenue per day increased 6.3% annually, driven by a 5.2% gain in daily LTL tonnage, as well as LTL revenue per hundredweight heading up.   

And it added that the change in LTL tons per day was due to a 2.6% increase in LTL weight per shipment and a 2.5% increase in LTL shipments per day. What’s more, on a quarter-to-date period, LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, increased 0.5% and 3.8%, respectively, annually.

“Old Dominion’s revenue results for November include increases in both our volumes and yield,” said Greg C. Gantt, President and Chief Executive Officer of Old Dominion, in a statement. “The increase in tonnage reflects the additional demand for our industry-leading service as well as further improvement in the domestic economy. Although there continues to be risk to the economy associated with the pandemic, we are increasing the capacity of our team to prepare for anticipated growth.”

Earlier this year, Gantt observed that while there are continuing risks to the domestic economy, ODFL believes these recent trends will create additional opportunities for it to win market share while also supporting its long-term yield initiatives.

In early August, ODFL announced that it expanded its network by adding nine service centers in new and existing markets during the first half of 2020.

Company officials said that this steady growth solidifies the company’s strong presence across the United States, bringing total nationwide service center count to 238. The less-than-truckload (LTL) carrier’s new facilities include, Butte, Mont., Cedar Rapids, Iowa, Conroe, Texas, Jonesboro, Ark., Lafayette, Ind., LaGrange, Ga., Rochester, N.Y, Rock Island, Ill. and University Park, Ill.

Credit Suisse analyst Allison Landry wrote in a research note that ODFL’s November volume trends came in stronger than expected, with positive momentum continuing thus far in December. And she added that retail customer volumes have been strong, with the company highlighting notable strength from big box stores, supported by ongoing inventory restocking.