We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Old Dominion boosts third-quarter tonnage view, reflecting company's ability to grab LTL market share
newsworthy

Old Dominion boosts third-quarter tonnage view, reflecting company's ability to grab LTL market share

September 3, 2014
DC Velocity Staff
No Comments

Old Dominion Freight Line Inc. continues to be on a roll.

The Thomasville, N.C.-based less-than-truckload (LTL) carrier, which has established itself as one of the premier players in all transportation, late yesterday increased its outlook for third-quarter tonnage growth, saying daily tonnage would rise by between 18 and 18.5 percent compared to the same period in 2013. Previously, Old Dominion forecast third-quarter volumes would rise between 17 and 17.5 percent over prior-year results. This marks the third consecutive quarter that Old Dominion has raised its forecasts for tonnage growth during the quarter.

Old Dominion also affirmed its view that third-quarter revenue per hundredweight, excluding fuel surcharges, would increase by 2 to 2.5 percent over the prior-year quarter. Revenue per-hundredweight is a key metric of a LTL carrier's ability to manage its profitability.

Old Dominion said July and August tonnage rose by 18.8 percent and 19 percent, respectively, over the same periods in 2013. Given that September is considered the strongest month of the quarter, it is possible that yesterday's guidance may prove conservative.

In a statement, David S. Congdon, Old Dominion's president and CEO, said the revisions "reflect our ongoing expansion in market share while maintaining our price discipline." Old Dominion's daily tonnage growth has accelerated throughout the year, Congdon said.

Old Dominion's forecasts give industry watchers a more real-time glimpse into LTL market conditions than waiting for the company's quarterly financial results. A pickup in industrial activity, as measured by yesterday's strong August reading on manufacturing from the Institute for Supply Management (ISM), is spurring demand in general for LTL services. Gains in the second quarter came in part from pent-up demand as more traffic was pushed into April and May following inclement winter weather. However, Old Dominion's tonnage results are due as much to the company's ability to grab share as an improvement in macro conditions.

RISING TIDE
Still, a rising tide appears to be lifting other boats. Darren Hawkins, president of YRC Freight, the long-haul LTL unit of YRC Worldwide Inc., said in a phone interview that the company's volumes would remain strong for the rest of the year. Hawkins added that contract negotiations with large accounts—which represent the bulk of YRC Freight's business—are producing yields that are "well above historical norms."

The surge in second-quarter traffic pulled YRC Freight's physical network out of alignment during the quarter, the company has said. As a result, YRC Freight had to rely more heavily on costly purchased transportation services from the railroads. The network got back in sync around July 4, Hawkins said. In August, the company converted terminals in Houston, Seattle, and Memphis to breakbulk facilities capable of consolidating shipments from satellite terminals and repositioning equipment for outbound service. This network change will increase efficiencies, reduce miles travelled, and improve density, Hawkins said.

Today, purchased rail transportation is used judiciously and not as a reactive measure to protect shipment transit times against the delivery variability of a misaligned network, Hawkins said.

YRC Freight has recently added 2,500 employees, according to Hawkins. Of those 1,000 are drivers and 1,500 are working in dock operations, he said.

Transportation Trucking Less-than-Truckload
KEYWORDS Old Dominion Freight Line YRC Worldwide
  • Related Articles

    LTL capacity tightened up in third quarter, Old Dominion CEO says

    Old Dominion head says LTL pricing remained stable in quarter, refuting claims of rate wars

    Old Dominion posts record results in quarter, says LTL pricing strengthened

Recent Articles by DC Velocity Staff

Warehouse robotics vendor Berkshire Grey goes public in SPAC deal

DHL opens drive-up retail store in Virginia

Monthly truck tonnage continues slow monthly recovery, but remains depressed from pre-pandemic levels

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Walmart launches plan to build micro-DCs inside dozens of retail stores

  • Relaxed regulations for drone parcel delivery to take effect in March

  • Gartner survey signals increased investment in resilience over the next two years

  • Increasing Urgency for Vaccine Supplies Drives Launch of New Vaccine Manufacturing Resources on Thomasnet.com

  • What Level of Automation is Right for Your Warehouse?

Now Playing on DCV-TV

7d82a38f f300 4f37 aac7 93ec8a60c08a

Heads Up: Your CEO Could be Calling!

DCV-TV 4: Viewer Contributed
The challenge on the table is how to make the best of a tumultuous transportation market. Watch this video to hear some tips to consider. Check out last week's 2MW: https://blog.tranzact.com/2-minute-warning/note-to-ceos-dont-blame-the-logistics-department OTR with Peter Tirschewell, from the Journal of Commerce...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing