Old Dominion Freight Line, Inc.

Old Dominion Freight Line, Inc. (Old Dominion) is one of the leading transportation company’s which operates as a less-than-truckload (LTL) motor carrier within North America and Mexico. Their customizable LTL services include direct, next, and second day delivery throughout the United States and Canada. In addition to LTL services, Old Dominion provides other logistical solutions (which are broken down into four segments) such as air expedited transportation, supply-chain consulting, warehousing, container delivery, and global freight services.

Political Factors

Currently, Old Dominion is non-union which gives them a competitive advantage on pricing; however, if Congress were to approve legislation that could motivate employees to unionize it would dramatically increase operating costs and customer pricing. Moreover, Congress regulates the trucking industry by the Federal Highway Administration which is an agency that works with DOT to support state and local agencies with financial and technical issues. The EPA can issue tighter exhaust emission limits which must be complied with new equipment. Old Dominion must comply with DOT regulations that are set by the government and enforced by the federal, state, and local government officials. These regulations include not only equipment related issues but also employee regulations. With the implementation of IFTA (International Fuel Tax Association) taxes are collected from carriers who travel outside their jurisdiction. The funds that are collected from this tax are used to maintain roads and bridges, and the amount of tax collected is contingent upon the jurisdiction in which the motor carrier travels.

Economic Factors

The trucking industry is an integral service in North America and Mexico. It provides logistical needs to stakeholders conducting business. The United States and Canada experienced economic impacts from the Great Recession, but both countries have been recognizing small incremental...