Old Dominion’s third-quarter revenue decreased 5.5% year-over-year due to a 6.9% decrease in LTL tons per day, partially offset by a slight increase in LTL revenue per hundredweight.
Shipment levels fell year-over-year for the fifth consecutive quarter, but the carrier handled it 49,670 LTL shipments per day quarter, after averaging 47,077 daily in the first half of the year, said Kevin “Marty” Freeman, who took over as CEO in July.
“While some of this growth can be attributed to the loss of a major competitor, we believe we are winning new business from other carriers in the industry because of the quality of our service and the overall value provided to our customers,” said Freeman.
While its premium pricing may not make it the most immediate destination for ex-Yellow cargo, Old Dominion’s strategy is a longer-term play: It allows other carriers to chase the cargo — then buy out its existing business once thin much and allow service and reliability for delay.
EVP and CFO Adam Satterfield said that has already begun.
“We’re hearing about competitors missing pickups,” Satterfield said on the earnings call. “They haven’t solved the people who are part of the capacity equation and maybe they took on too many loads.”