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A key overview of Old Dominion Freight Line for investors

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Old Dominion Freight Line

Old Dominion Freight Line (ODFL) is the fifth largest trucking company by revenue. Earl and Lillian Congdon founded the company in 1934 in Virginia. ODFL is a union-free, less-than-truckload (or LTL) motor carrier that provides regional, inter-regional, and national LTL service and other logistics services.

Apart from its LTL services that garner about 90% of the company’s revenues, the company also provides a broad range of value-added services, including international freight forwarding, ground and air expedited transportation, container delivery, truckload brokerage, supply chain consulting, warehousing, and consumer household pickup and delivery.

The company also provides transportation services to third-party logistics providers that determine both the mode of transportation and the carrier.

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Competition

ODFL mainly competes with other regional, inter-regional, and national LTL carriers, as well as truckload carriers, small package carriers, airfreight carriers, and railroads. The company also competes with a number of larger transportation service providers that have a wider service offering, broader network, more equipment, and better pricing power than ODFL.

The company is able to sustain and grow in the industry by providing superior quality and timely service at a fair and equitable price to its customers. ODFL provides its services through ten major break bulk facilities and 221 service centers located in six regions of the country in order to provide the highest quality service and minimize freight rehandling costs.

The company’s major competitors in the industry are JB Hunt Transport Services (JBHT), Con-way (CNW), YRC Worldwide (YRCW), Werner Enterprises (WERN), and USA Truck (USAK), which are all part of the iShares Transportation Average ETF (IYT).

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