Old Dominion Freight Line (NASDAQ: ODFL) has already opened nine new less-than-truckload (LTL) terminals so far in 2020, it announced Monday. The Thomasville, North Carolina-based carrier’s network of service centers now stands at 238.
The facilities have been added in new and existing markets in efforts to expand capacity and improve shipping times.
“Even during an unprecedented time, we will continue to invest in our network and look for additional ways to improve our operations. Our goal is to build capacity to win market share, while shortening response time and transit times. Our investments align with our long-term strategic plan of investing in our business,” Senior Vice President of Strategic Planning Chip Overbey said in a news release.
The company reiterated its 2020 capital outlay of $195 million for real estate and expansion projects in its second-quarter earnings release last week. On its second-quarter earnings call, management noted several opportunities to increase its market share. They said that some of the freight the carrier had lost to lower prices early in the quarter was coming back to their network as shippers appear more willing to pay a premium for service.
Old Dominion originally expected terminal projects to total $245 million at the beginning of the year before COVID-19 cast uncertainty on freight markets.
On the call, management said revenue per day was down 19.3% year-over-year in April, the peak of the COVID downturn, but improved as the quarter progressed. The year-over-year revenue decline was 11.4% in June, with July only seeing a 3% dip as manufacturers have resumed operations and supply chains restock depleted inventories.
The new facilities, representing nearly 500 doors, are located in Montana, Iowa, Texas, Arkansas, Indiana, Georgia, New York and two in Illinois. The bulk of the new door space is incremental, and the facilities have been constructed with the ability to expand in the future.
“Our customers are having to adapt to these rapidly changing times. Our newest service centers are integral to Old Dominion Freight Line’s operations, accommodating unique customer needs and shipping higher volumes of goods. We will continue to invest in long-term solutions to help our customers keep their promises,” concluded Overbey.