VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Old Dominion Freight Line, Inc.
ODFL · NASDAQ
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
Old Dominion Freight Line is a large North American LTL carrier whose moat is built on an expansive service-center network, dense lanes, and high service reliability supported by disciplined operations and proprietary technology. The business is overwhelmingly LTL, with a small mix of value-added services such as drayage, brokerage, and consulting. Key risks include freight-cycle sensitivity tied to industrial activity, competitive bid cycles that pressure pricing, and the fixed-cost leverage inherent in an asset-heavy network.
Primary segment
LTL Services
Market structure
Oligopoly
Market share
11%-13% (implied)
HHI: —
Coverage
2 segments · 5 tags
Updated 2026-01-06
Segments
LTL Services
Less-than-truckload (LTL) freight transportation
Revenue
99.1%
Structure
Oligopoly
Pricing
moderate
Share
11%-13% (implied)
Peers
Other Services (Drayage, Brokerage, Supply Chain Consulting)
Freight brokerage, container drayage, and supply chain consulting
Revenue
0.9%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
LTL Services
Less-than-truckload (LTL) freight transportation
ODFL reports one operating/reportable segment in SEC reporting; this segment models the core LTL revenue line. Revenue share derived from the FY2024 10-K revenue composition table. Per FY2024 10-K, no single customer exceeds 6% of revenue.
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
A large service-center footprint creates pickup/delivery and lane density that supports faster transit, fewer rehandles, and better unit economics; difficult to replicate given capex and fixed-cost requirements in LTL.
Erosion risks
- Competitors expand terminal/service-center footprints
- Freight downturn reduces network density advantages
- Technology/automation reduces rehandling disadvantage for less-dense networks
Leading indicators
- Service-center count and door capacity
- On-time performance and cargo-claims trends
- Operating ratio trend vs peers
Counterarguments
- Other large incumbents also run national LTL networks, so the advantage is relative, not exclusive
- Asset-heavy networks increase fixed-cost leverage in prolonged downcycles
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Disciplined execution (daily productivity/service monitoring, cross-trained labor, and integrated operations) supports high service levels and cost control over time.
Erosion risks
- Labor availability and wage inflation
- Service quality degradation during network expansion
- Technology execution failures or outages
Leading indicators
- Pickup & delivery productivity (stops/shipments per hour)
- Linehaul load factor and transit-time consistency
- Claims expense and cargo-claims frequency
Counterarguments
- Well-capitalized peers can replicate process improvements over time
- Regulatory constraints (safety rules, hours-of-service) limit the ceiling on productivity gains
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength
Durability
Confidence
Evidence
LTL economics have high fixed costs; larger/dense networks can spread terminal and linehaul fixed costs over more shipments, improving cost per shipment relative to smaller operators.
Erosion risks
- Competitors gain scale via M&A and network build-outs
- Downcycle reduces utilization and reverses unit-cost benefits
- Higher capex intensity raises depreciation burden
Leading indicators
- Network density metrics (shipments/tonnage growth within existing infrastructure)
- Capex intensity and depreciation as % of revenue
- Cost per shipment vs peers (if disclosed/estimated)
Counterarguments
- Scale does not guarantee cost advantage if network utilization falls
- Service differentiation may require higher costs that offset some scale benefits
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
B2B reputation for reliable transit times, strong on-time performance, and low claims supports retention and share gains even when pricing is competitive.
Erosion risks
- Service disruptions (weather, accidents) damage reputation
- Industry capacity loosens, shifting shipper focus to price
- Large-customer bid cycles shift freight among carriers
Leading indicators
- On-time performance and claims trends
- Yield vs peers (e.g., revenue per hundredweight trends)
- Share gains in downcycles (proxy: shipment/tonnage trends vs peers)
Counterarguments
- Many large shippers multi-source carriers and re-bid regularly, limiting long-term loyalty
- Peers can improve service levels, compressing differentiation
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Customer-facing systems (tracking, documents, rating/quotes, account activity) and integrated support can embed ODFL in shipper workflows, adding friction to switching, though typically not absolute lock-in.
Erosion risks
- TMS platforms abstract carrier-specific workflows
- Industry-standard APIs reduce integration friction
- Competitors match digital tooling/visibility features
Leading indicators
- Digital self-service adoption (if disclosed)
- EDI/API integration penetration (if disclosed)
- Customer-service contact rate per shipment (proxy for friction)
Counterarguments
- Most carriers offer similar tracking/rating tools; switching costs are often modest
- Shippers can shift volume quickly if price/service changes
Other Services (Drayage, Brokerage, Supply Chain Consulting)
Freight brokerage, container drayage, and supply chain consulting
Revenue share derived from the FY2024 10-K revenue composition table; these offerings are small relative to core LTL.
Suite Bundling
Demand
Suite Bundling
Strength
Durability
Confidence
Evidence
Cross-selling value-added services alongside core LTL can make ODFL a 'single-source' provider for some customers, improving stickiness versus standalone providers (though the category is generally competitive).
Erosion risks
- Customers prefer best-of-breed providers for brokerage/drayage
- Non-asset brokerage is highly price-competitive and fragmented
- Limited scale in these offerings reduces differentiation
Leading indicators
- Other-services revenue share trend
- Attach rate of ancillary services to LTL customers (if disclosed)
- Gross margin trend in ancillary services (if disclosed)
Counterarguments
- Brokerage and drayage are generally commoditized; bundling may not create durable defensibility
- Large 3PLs can bundle more modes/geographies than ODFL
Evidence
Describes LTL as requiring an expansive service-center network with significant capital requirements; states ODFL operated 261 service centers (owned 239) as of December 31, 2024.
Risks & Indicators
Erosion risks
- Competitors expand terminal/service-center footprints
- Freight downturn reduces network density advantages
- Technology/automation reduces rehandling disadvantage for less-dense networks
- Labor availability and wage inflation
- Service quality degradation during network expansion
- Technology execution failures or outages
Leading indicators
- Service-center count and door capacity
- On-time performance and cargo-claims trends
- Operating ratio trend vs peers
- Pickup & delivery productivity (stops/shipments per hour)
- Linehaul load factor and transit-time consistency
- Claims expense and cargo-claims frequency
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.