Zinger Key Points
- Old Dominion remains the industry leader, with peers struggling to close the performance gap.
- XPO and ArcBest show improvement, but Old Dominion's service and pricing power set the standard.
- Discover Fast-Growing Stocks Every Month
Old Dominion Freight Line Inc ODFL just reaffirmed its status as the gold standard in less-than-truckload (LTL) freight, according to JPMorgan analyst Brian Ossenbeck, who recently pored over insights from the 2024 Mastio Survey.
Old Dominion's Playbook: The Industry's Gold Standard For 15 Years
The survey, with feedback from roughly 1,600 shippers, showcases Old Dominion's dominance in an industry where rivals are scrambling to catch up.
Despite the buzz around newer strategies, Ossenbeck's analysis indicates that Old Dominion still has a substantial lead. Peers like XPO Inc. XPO and Saia Inc SAIA may be adopting aspects of Old Dominion's "playbook". They’ve been prioritizing service, improving network efficiency, and leveraging pricing power. But even after implementing these strategies, they've only narrowed the gap by 7%.
Ossenbeck puts it simply—executing Old Dominion's playbook is easier said than done.
Read Also: Old Dominion Freight Line Q3: Misses On Earnings And Revenue As Economic Headwinds Weigh
ArcBest, XPO Make Gains, While TForce, Saia Lag
Among the pack, ArcBest Corp ARCB and XPO made notable strides in 2024.
ArcBest showed the largest service improvement, with strong gains in on-time pickup and delivery, key metrics for shippers.
XPO, with its LTL 2.0 strategy, also achieved robust performance gains, especially with smaller shippers. Meanwhile, Estes held steady, maintaining a high service level but not outpacing peers in improvement.
At the other end of the spectrum, TForce Freight is struggling with cost efficiencies and service expectations. Saia, despite a network expansion, saw its service performance slip, a trend Ossenbeck expects to stabilize in the coming year.
And then there's FedEx Freight – which has the second-slowest performance improvement among national carriers.
For 15 years running, Old Dominion has been the reigning champ in LTL freight, while peers have been taking notes. According to Ossenbeck, OD's mastery in service, pricing, and network efficiency keeps it miles ahead – leaving everyone else playing catch-up.
Read Next:
Photo: Jon Tetzlaff/Shutterstock.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
