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 !!