Old Dominion Freight Line’s tonnage metrics have turned positive for the primary time in nearly two years. The less-than-truckload carrier’s second-quarter update shows improvement from the primary quarter but a slight deceleration in growth rates from April to May.
The corporate announced Wednesday that revenue per day was 5.6% higher yr over yr (y/y) in May, higher than the 1.2% growth rate in the primary quarter but barely below a 6.3% increase in April. May’s tonnage was up 1.5% y/y as shipments increased 2.3% and weight per shipment fell 0.7%.
The carrier reported a 4.2% y/y increase in revenue per hundredweight, or yield, for the primary two months of the second quarter. The metric was 4.7% higher excluding the impact of fuel surcharges.
“We’re pleased with the continuing improvement in our LTL revenue per hundredweight, which reflects our consistent, cost-based approach to pricing in addition to stability in the general pricing environment,” said Marty Freeman, president and CEO, in a news release.
![](https://www.freightwaves.com/wp-content/uploads/2024/06/05/LTL-KPI-table.jpg)
The corporate historically sees an 8.7% sequential growth rate in revenue from the primary to the second quarter together with 350 to 400 basis points of margin improvement. Nonetheless, the trend through the primary two months of the quarter implies revenue is up lower than 3% sequentially. A weaker sequential revenue trend in April prompted management on its first-quarter call to forecast just 150 bps of margin improvement for the second quarter.
Old Dominion’s (NASDAQ: ODFL) midquarter update highlighted its cautious approach in taking market share through the current downcycle.
As compared, competitor Saia (NASDAQ: SAIA) has been aggressively onboarding orphaned freight following Yellow Corp.’s (OTC: YELLQ) shutdown last summer. Saia bought 28 terminals from the bankrupt estate and plans to grow its door count by 12% to 14% this yr.
Saia’s Tuesday update showed a 19% y/y increase in shipment counts during May, a slight acceleration from an 18% increase in April. On a two-year stacked comparison, its tonnage was up 7% for the April-May period in comparison with a 12% decline for Old Dominion.
Old Dominion purposefully sat out the recent jump ball for freight but has historically captured market share at a better clip than its peers. It invests in infrastructure ahead of the demand curve and currently sits on 30% latent network capability.
“We consider our service metrics and value proposition remain best at school, which puts us in a powerful position to win market share and increase shareholder value over the long run,” Freeman said.
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