Thomasville, N.C.-based national less-than-truckload (LTL) carrier Old Dominion Freight Line (ODFL) provided guidance for key November operating metrics this week.
ODFL reported that revenue-per-day fell 8.2 % annually, paced by an 8.0% decrease in daily LTL tonnage, as well as slight decrease in LTL revenue per hundredweight. And it added that the change in daily LTL tonnage was due to a 6.8% decline in LTL shipments per day, as well as a 1.2% decrease in LTL weight per shipment.
On a quarter-to-date basis, ODFL said that LTL revenue per hundredweight and LTL revenue per hundredweight, excluding fuel surcharges, increased 1.2% and 3.7%, respectively, on an annual basis.
“Our revenue results for November reflect the continued softness in the domestic economy as well as the impact of lower fuel surcharge revenue on our yields,” said Marty Freeman, President and Chief Executive Officer of Old Dominion. “While our LTL volumes declined on a year-over-year basis in November, the improvement in our revenue per hundredweight, excluding fuel surcharges, demonstrates our continued commitment to yield management. We have achieved consistent, cost-based increases in our yield metrics, excluding fuel surcharges, by remaining committed to providing our customers with superior service at a fair price. As we continue to deliver on these core elements of our long-term strategic plan, we remain confident in our ability to win market share and increase shareholder value over the long term.”
In October, ODFL reported third quarter income of $1.47 billion, which was off 3.0% annually. LTL services revenue accounted for nearly all of that, at $1.457 billion, for a 2.9% annual decrease.
In an earnings release, Freeman said that third quarter financial results reflected ongoing softness in the domestic economy.
“The challenging operating environment, and strong comparable results for the third quarter of 2023, resulted in the first year-over-year decrease in our quarterly revenue and earnings per diluted share this year,” he said. “Our market share and volume trends, however, remained relatively consistent with the first half of this year while our yield continued to improve. The consistency in our market share and yield performance continued to be supported by our best-in-class service, as we once again provided our customers with 99% on-time service and a cargo claims ratio of 0.1% during the quarter.”
