ODFL reports solid tonnage trends in November update

National less-than-truckload carrier Old Dominion Freight Line (ODFL) 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.

Credit Suisse analyst Allison Landry 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.