Old Dominion Freight Line reports solid February 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 February today.
ODFL reported that revenue per day increased 9.2% compared to February 2020, which was driven by a 5.9% increase in LTL tons per day, as well as an increase in LTL revenue per hundredweight. And it added that the change in LTL tons per day was due to a 4.1% increase in LTL weight per shipment.
Through the first two months of the first quarter, ODFL reported that LTL revenue per hundredweight and LTL revenue per hundredweight, minus fuel surcharges, headed up 2.7% and 3.8%, respectively, on an annual basis.
“Old Dominion produced solid revenue growth for February, despite the significant impact from winter weather on our operations,” said Greg C. Gantt, President and Chief Executive Officer of Old Dominion, in a statement. “While we are generally accustomed to the challenges associated with inclement weather, the severity and geographic coverage of the storms during the third week of the month negatively affected revenue and operations for an unusually large number of our service centers. We began to resume normal operations as the weather improved during the last week of the month. As a result, our revenue growth per day for all but the third week of the month was relatively consistent with our revenue growth rate in January 2021 of 14.6%.
Gantt added that with an improving operating environment and domestic economy, ODFL believes it can win additional market share by continuing to deliver superior service at a fair price.
“As we anticipate additional growth in volumes, we are focused on expanding the capacity of both our workforce and our service center network,” he said. “By continuing to focus on these fundamental elements of our long-term strategic plan, we expect to produce profitable growth and long-term 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.
