Post on 11-Feb-2016
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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 !!