ODFL reports solid tonnage trends in November update
The Thomasville, N.C.-based carrier reported that LTL tons per day increased 3.1% in November on an annual basis, which it said was driven by a 7% increase in LTL shipments per day that was offset by a 3.6% decrease in LTL weight per shipment.
Transportation in the NewsMay truck tonnage sees some gains but trends down due to tough annual comps, reports ATA Cass Freight Index reports more shipment and expenditures declines in May U.S. waterborne shipments are up in May, reports Panjiva Annual truckload and intermodal pricing gains remain intact, reports Cass and Broughton Capital U.S. rail carload and intermodal volumes are down for week ending June 8, reports AAR More Transportation News
Transportation Resource2nd Annual Trucking Fleet Management Survey Download This Complimentary eBook – 2019 Descartes Fleet Management Benchmark Study Findings
National less-than-truckload carrier provided guidance for key operating metrics for November.
The Thomasville, N.C.-based carrier reported that LTL tons per day increased 3.1% in November on an annual basis, which it said was driven by a 7% increase in LTL shipments per day that was offset by a 3.6% decrease in LTL weight per shipment. On a fourth quarter-to-date basis through November, ODFL said revenue per shipment was up 13.5% annually.
“Our revenue growth for the first two months of the fourth quarter reflects the ongoing strength of the domestic economy and our ability to win market share,” said Greg C. Gantt, President and Chief Executive Officer of Old Dominion, in a statement. “Customer demand continues to be favorable, and we look forward to the opportunity for further growth in 2019.”
In previous monthly updates provided by ODFL this year, Gantt mentioned that while the rate of the company’s LTL volume growth has slightly trailed what it experienced during the first half of 2018, ODFL believes change is primarily attributable to our decision to reduce the number of heavy-weighted shipments in our network. This strategic reduction also had a positive impact on LTL revenue per hundredweight. Customer demand for our service offerings remains strong, and we believe our service center network capacity will remain sufficient to support the anticipated growth of our business for the foreseeable future.
Gantt added that ODFL intends to continue to reinvest in its business to ensure that it has the necessary equipment, facilities and people to support our long-term strategic initiatives, which it believes will continue to increase shareholder value.
wrote in a research note that despite the subdued tonnage growth for ODFL, shipment trends are better than expected, while the pricing backdrop remains relatively strong.
About the AuthorJeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Warehouse Execution Systems (WES) Evolves Beyond “inside the four walls” Got labor? How supply chain companies are recruiting talent during a labor crunch View More From this Issue