Old Dominion Freight Line is basically saying this: business was softer in February, but they’re not ready to call it a downturn — and they’re still betting the U.S. economy is headed the right way, even if it’s doing it at the pace of rush hour.
The trucking company reported that revenue per day fell 3.3% in February compared with a year earlier, largely due to a 6.8% drop in less-than-truckload tons per day. Shipments per day were down 7.0%, only slightly offset by a 0.2% increase in weight per shipment.
In plain terms: fewer loads were moved, and the loads weren’t meaningfully heavier. But pricing held up.
Old Dominion said LTL revenue per hundredweight increased, helping soften the blow from lower volumes. For the quarter to date, revenue per hundredweight was up 3.5%, and up 4.1% excluding fuel surcharges, compared with the same period last year.
Management said that while tonnage has been down year over year for the first two months of the quarter, it remains cautiously optimistic about the direction of the domestic economy. The company also pointed to strong service and tight yield management as reasons it has been able to keep improving revenue per hundredweight, and said it has capacity available to handle more freight if demand picks up.
So yes, February was lighter. But Old Dominion’s message is that the floor hasn’t dropped out — and they’re positioning themselves for the moment the freight market finally decides to wake up.
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