• Old Dominion Freight Line (ODFL) has a strong pricing discipline and best-in-class service capabilities.
• It has been consistent in investing in network capacity.
• It has an industry-wide record of 99% on-time delivery and an impressive 4% cargo claims record.
• It uses state-of-the-art technologies to provide more efficiency.
• It focuses on employees and customers.
• The company’s non-union labor force bestows greater cost flexibility and operational efficiency.
• Volumes in the company’s operations are subject to variability in US macroeconomic conditions.
• Since the company operates in a single business segment, any downturn in the segment would lead to losses.
• The company is subject to seasonal trends and harsh weather conditions adversely affect the company’s earnings.
• The company is exploring international opportunities in newer countries and markets in emerging economies such as BRIC nations (Brazil, Russia, India, and China).
• It is expanding into the full truckload segment.
• It is expanding operations in the drayage market.
• The company competes with industry heavyweights such as FedEx and United Parcel Service, which have a greater network and a competitive edge.
• Price competition drives down the profitability of all providers during periods of anemic freight demand.
• Unionization of the company’s employees would have an adverse effect on the company’s business and its financial condition.
• Newer regulations on hours of operations could adversely affect the operating efficiency of the company.