I.T.T.S Freight in the Southeast Conference February 10, 2011 David S. Congdon President, C.E.O. Old Dominion Freight Line, Inc.
Feb 11, 2016
I.T.T.S Freight in the SoutheastConference
February 10, 2011
David S. CongdonPresident, C.E.O.
Old Dominion Freight Line, Inc.
ODFL Overview
• 6th largest LTL (Less than truckload) -Founded 1934• 214 Service Centers – 11,000 FT Employees
– OD Domestic - Multi-regional, inter-regional, 48 state coverage
– OD Global – 48 states to/from the world• 5,800 power units – 388 million miles – 64 million
gallons of fuel• 21,000 - 28’pup trailers over the road• Sustainability/Green trucking are obviously key
focal points
ODFL Green Initiatives forPower equipment
• Smartway certified• Aerodynamics since 1971• Most efficient engines & equipment available• LRR Tires and automatic tire pressure systems• Driver training – Fuel Efficient driving techniques• Peoplenet Onboard system – Driver metrics, route
optimization, E-Logs• Maximize cube utilization - Load bars, bags, straps• Load & route optimization software – 15 yrs.• Triple 28’ trailers where allowed (more later)
BOTTOM LINE• We are utilizing every proven means
available to us as a fleet operator• Professionally managed LTL and large
T/L fleets are too• Increasing vehicle productivity by
allowing for increased size and weight is the only meaningful lever left to pull !!
Tremendous Challenges ahead
• Growing U.S. population – 2.6 million per year driving more consumer demand
• Inevitable we will have more cars, trucks, congestion if nothing changes
• Nothing?? – Unacceptable – last 20 years• Add highway capacity with focus on bottlenecks
– expensive & time consuming but has to be done
• Improve productivity of ALL existing modes !
"Get more trucks off the highway"
• “Shift more freight to rail” – Common theme• Shippers, consignees, consumers
– Want everything now! We’re in a hurry!– Shippers consider total supply chain cost – 1st and
last mile $$, rail intermodal$$, inventory carrying $$, etc. vs. door to door LTL or TL
– In many cases intermodal works – not THE answer.• Great idea and we endorse ! – But will this realistically
solve the problem ?• MORE PRODUCTIVE TRUCKS will get trucks off the
highway !!
Facts about LTL service
• LTL Customers demand tight door to door transit times– Next day up to 600 miles– Second day up to 1,400 miles– Third day up to 2100 miles– 4th & 5th – beyond 2,100 miles
• For OD, we have found rail intermodal works only in long haul, head haul lanes, over weekends, end of the month/quarter surges
• Trucks are the only answer for “first and last mile”
• 28’trailers are most efficient in LTL network from cost and transit time standpoint
• OD utilizes100% 28’trailers in line haul – Doubles everywhere (97% of line haul miles)– Triples where allowed in western states– Very typical of LTL industry
• In LTL environment we cube out trailers before weigh out. ODFL total GCW averages 64,000 lbs
• Triples avg 90,340 GCW spread over 32 more ft • WE’VE GONE AS FAR AS WE CAN GO AND
NEED THE EXPANDED USE OF TRIPLES !!
Facts about LTL service
Legislation IS the bottleneck
The Problem• 1991 - I.S.T.E.A froze states from allowing more
productive vehicles – 20 years ago!!!• Times have changed!! – Nation’s needs have
changes It’s time to free up that legislative bottleneck !
The Solution• Lifting the freeze, allowing more use of triples
provides proven and significant benefits !• Benefits are IMMEDIATE, SAFE, and require
negligible cost or capital investment.
BENEFITS - Triples
• Reduced trucks & congestion• OD’s experience - D.O.T. accident ratio is 13%
better on mileage and 20% on tonnage• Fuel consumption - Ton mpg improves 20 –
25%• Reduce Carbon & GHG emissions• No impact on highway infrastructure• Negligible capital or operating costs increase• Shippers / Consumers will benefit• Productivity improvement and benefits
are IMMEDIATE !!
Now I want to prove it !ODFL only, just 1 month
ODFL BENEFITS - Triples
• One month – July 2010 at ODFL• Just these 10 selected routes would save 2.84
million miles ONE MONTH - 10% of total miles• Annualized 5,672,700 gallons of diesel !!• 62,967 tons of carbon per year !!• 9.6 % fewer trucks on the road – 4,825 per
month• JUST 1 FLEET, 10 routes, one slow month• WHAT IF all interstates and all LTL
carriers???
What we need from you
• Recognize that allowing more productive trucks is a big part of the answer to our nation’s current and future freight transportation problems
• Recognize that this solution is IMMEDIATE, SAFE, and will provide economic benefits to shippers and consumers
• Help us dispel unfounded perceptions and change legislation to allow MORE PRODUCTIVE TRUCKS !!