Old Dominion Freight Line Inc. reported its less-than-truckload tons per day increased 7.7% in July and 5.8% in August year-over-year, while revenue dipped amid constraints on fuel surcharges.
The growth in LTL shipments in July and August was consistent with the company’s long-term growth trends, CEO David Congdon said in a statement.
Old Dominion cited declines in fuel surcharges as the primary reason for the year-over-year decrease in LTL revenue per hundredweight of 0.8% for July and 1.2% in August.
The carrier said excluding fuel charges, LTL revenue per hundredweight, increased 5.3% and 5.6% in July and August, respectively, year-over-year.
The increases in tons per day reflected growth in shipments of 12.9% in July and 11.7% in August year-over-year, partially offset by a decline in LTL weight per shipment of 4.6% and 5.3% in July and August, respectively, compared with the same period last year.
“Our LTL tons per day also continued to grow against difficult year-over-year comparisons of 18.8% and 19% growth for July and August 2014, respectively, and the continued decline in our LTL weight per shipment. We believe the pricing environment continues to be stable and are confident in our ability to continue to gain market share while also improving our yield,” Congdon said.
Meanwhile, speaking of the carrier’s second-quarter results, Baird Equity Research in a letter to investors said those results were slightly ahead of analysts expectations and “impressive in the context of slightly weaker-than-expected volume trends to end 2Q.”