Old Dominion Freight Line Inc. reports its May 2023 less-than-truckload freight revenue was down 14.4% compared to May 2022.
The Thomasville, N.C., carrier attributed the revenue decrease to an 11.4% decrease in LTL shipments per day and a 3.4% decrease in weight per shipment.
For the quarter-to-date period, less-than-truckload revenue per hundredweight excluding fuel surcharges increased slightly, 0.1% compared to the same period last year, the company announced in a second-quarter update announcement. LTL revenue per hundredweight increased 7.9%.
“Old Dominion’s revenue results for May reflect continued softness in the domestic economy as well as a decrease in fuel surcharge revenue. While our volumes decreased on a year-over-year basis, our LTL shipments per day remained relatively consistent with the first quarter of 2023, and our yield continued to improve,” Greg C. Gantt, Old Dominion president and CEO, said in the announcement.
Gantt attributed the increase in LTL revenue per hundredweight primarily to the company’s ongoing execution of a yield-management strategy.
“We remain focused on delivering superior service at a fair price to support our consistent, cost-based approach to managing yields, despite the year-over-year decrease in volumes,” Gantt said. “As we continue to deliver our unmatched value proposition, and consistently execute on the other key elements of our long-term strategic plan, we believe we will win market share and increase shareholder value over the long term.”
Old Dominion first-quarter revenue
In April, Old Dominion reported revenue for the quarter ending March 31 down 3.7% from 2022, dropping from $1.5 million to $1.44 million.
LTL freight for the first quarter dropped 3.5% from $1.48 million in 2022 to $1.42 million in 2023.
“While our volumes decreased on a year-over-year basis, our overall market share remained relatively consistent and our yield continued to improve,” Gantt said in April’s report.
The company’s operating ratio rose from 72.9% for the first quarter of 2002 to 73.4% for first quarter 2023. The operating ratio indicates how efficiently costs have been contained while generating revenue. The smaller the ratio, the more efficient a company is in generating revenue relative to total expenses.
Old Dominion Freight Line is a nonunion LTL carrier. It was founded in 1934 by Earl and Lillian Congdon in Richmond, Va. In 1991, the company closed its furniture shipment division. It also sold its commodities truckload and flatbed freight division of its Deaton subsidiary according to Zippia.com. That same year, it had its initial public stock offering. LL
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