VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Friday, January 2, 2026
Old Dominion Freight Line, Inc.
ODFL · The Nasdaq Stock Market LLC
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Old Dominion Freight Line is an asset-based North American LTL carrier; most revenue comes from LTL services, with a small contribution from value-added logistics (drayage, brokerage, consulting). The core moat is a dense service-center network that requires sustained capital plus strong operational execution (on-time performance and low claims) supporting a premium service proposition. The domestic LTL market is consolidated among large carriers but remains competitive on price and service; ODFL's advantage is strongest where reliability and network coverage matter. Value-added services mainly benefit from cross-sell into the LTL customer base but compete in more fragmented, lower-moat markets.
Primary segment
LTL Services
Market structure
Oligopoly
Market share
11%-14% (implied)
HHI: —
Coverage
2 segments · 5 tags
Updated 2026-01-02
Segments
LTL Services
North American less-than-truckload (LTL) freight transportation
Revenue
99.1%
Structure
Oligopoly
Pricing
moderate
Share
11%-14% (implied)
Peers
Other Services (Value-added logistics)
North American container drayage, truckload brokerage, and supply chain consulting
Revenue
0.9%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
LTL Services
North American less-than-truckload (LTL) freight transportation
Revenue share based on FY2024 revenue composition disclosed as 'LTL services' vs 'Other services' in the FY2024 10-K; company reports one operating/reportable segment for SEC reporting.
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
Dense terminal/service-center footprint supports fast, reliable pickup/delivery plus linehaul with lower rehandling.
Erosion risks
- Competitors expand/optimize terminal networks
- Rising real-estate and construction costs for new service centers
- Operational disruptions (weather, IT outages)
Leading indicators
- Service-center count / door capacity
- On-time service % and transit-time performance
- Cargo claims ratio
Counterarguments
- Other national LTL carriers also have dense terminal networks
- Network advantages can narrow if peers add capacity in key lanes
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength
Durability
Confidence
Evidence
LTL requires sustained capital to build and maintain terminals and fleet; high fixed-cost structure favors established operators through cycles.
Erosion risks
- Downcycles reduce utilization and pressure margins
- Rivals with strong balance sheets can match capex
- Shift toward brokered/asset-light freight reduces asset-based pricing leverage
Leading indicators
- Capex and service-center expansion pace
- Operating ratio through the cycle
- Volume growth vs industry (shipments/day, tons/day)
Counterarguments
- Large incumbents (peers) can fund comparable capex
- Scale alone does not ensure superior returns without execution
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Execution discipline (network management, scheduling, training, tech) shows up in best-in-class service metrics and cost control.
Erosion risks
- Labor availability (drivers/technicians) and wage inflation
- Service degradation if volume swings overwhelm network balance
- Higher accident/claims costs or safety issues
Leading indicators
- Operating ratio
- On-time % and cargo claims ratio
- Employee turnover / hiring metrics
Counterarguments
- Competitors can close the service gap with investment and process improvements
- When capacity is loose, service differentiation may matter less than price
Reputation Reviews
Demand
Reputation Reviews
Strength
Durability
Confidence
Evidence
Premium reputation anchored in consistent on-time, low-claims service supports retention and pricing discipline.
Erosion risks
- Service failures or network disruptions damage reputation
- Aggressive competitor discounting reduces willingness to pay for premium service
- Large customers multi-source carriers, limiting loyalty
Leading indicators
- Yield / revenue per hundredweight (ex-fuel) trend
- Claims ratio trend
- Customer retention / bid win-rate
Counterarguments
- Procurement can be price-driven; reputation premium is cyclical
- Shippers often split lanes across multiple carriers
Switching Costs General
Demand
Switching Costs General
Strength
Durability
Confidence
Evidence
Carrier IT integrations (tracking, documents, rating) create switching friction, but most shippers can multi-carrier through TMS/3PLs.
Erosion risks
- TMS/3PL platforms standardize integrations across carriers
- Competitors match digital feature sets
- EDI/API commoditization reduces differentiation
Leading indicators
- Digital shipment booking adoption
- Customer churn / retention metrics
- EDI/API integration counts
Counterarguments
- Most shippers can re-route volumes quickly using multi-carrier TMS
- IT features are increasingly table-stakes in LTL
Other Services (Value-added logistics)
North American container drayage, truckload brokerage, and supply chain consulting
This segment corresponds to 'Other services' revenue category (e.g., container drayage, truckload brokerage, supply chain consulting) disclosed in SEC filings; economically small versus core LTL.
Suite Bundling
Demand
Suite Bundling
Strength
Durability
Confidence
Evidence
Value-added services can be cross-sold to existing LTL customers as a single logistics vendor, but the underlying markets are highly competitive.
Erosion risks
- Customers unbundle and use specialized brokers/3PLs
- Digital freight platforms reduce switching costs
- Price competition compresses brokerage/drayage margins
Leading indicators
- Other services revenue growth rate
- Attach rate of value-added services to LTL accounts
Counterarguments
- Brokerage and drayage are fragmented and low-moat categories
- Customers can add/remove brokers quickly with limited switching cost
Procurement Inertia
Demand
Procurement Inertia
Strength
Durability
Confidence
Evidence
Existing enterprise procurement relationships in LTL may help win adjacent service spend, but contracts can be rebid frequently.
Erosion risks
- Annual/biannual bid cycles reset share
- 3PLs consolidate transportation procurement across carriers
- Service issues spill over from core LTL, hurting cross-sell
Leading indicators
- Share of wallet within top shipper accounts
- Win/loss rate in brokerage/drayage bids
Counterarguments
- Procurement teams multi-source by design and prefer optionality
- Asset-light competitors can undercut pricing easily
Evidence
261 service centers
Scale of service-center footprint (terminal network density).
minimize freight rehandling
Network design aims to reduce handling cost/damage and improve service reliability.
high fixed costs
Company describes high fixed costs/capital spending requirements that challenge new entrants.
capital expenditures ... $450 million
Illustrates ongoing investment required to expand/maintain service network, equipment, and IT.
daily basis
Service-center performance is monitored frequently to maintain quality and efficiency.
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Risks & Indicators
Erosion risks
- Competitors expand/optimize terminal networks
- Rising real-estate and construction costs for new service centers
- Operational disruptions (weather, IT outages)
- Downcycles reduce utilization and pressure margins
- Rivals with strong balance sheets can match capex
- Shift toward brokered/asset-light freight reduces asset-based pricing leverage
Leading indicators
- Service-center count / door capacity
- On-time service % and transit-time performance
- Cargo claims ratio
- Real-estate/service-center capex
- Capex and service-center expansion pace
- Operating ratio through the cycle
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.