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I.T.T.S Freight in the Southeast Conference February 10 , 2011 David S. Congdon

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I.T.T.S Freight in the Southeast Conference February 10 , 2011 David S. Congdon President, C.E.O. Old Dominion Freight Line, Inc. ODFL Overview. 6 th largest LTL (Less than truckload) -Founded 1934 214 Service Centers – 11,000 FT Employees

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slide1

I.T.T.S Freight in the Southeast

Conference

February 10, 2011

  • David S. Congdon
  • President, C.E.O.
  • Old Dominion Freight Line, Inc.
odfl overview
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 for power equipment
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
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
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
"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
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”
facts about ltl service1
Facts about LTL service
  • 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 !!
legislation is the bottleneck
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
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 !!
slide11

Now I want to prove it !

ODFL only, just 1 month

odfl benefits triples
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
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 !!
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