Old Dominion Freight Line on Monday combined several existing business units to launch a carrier “neutral” third-party logistics provider, Vault Logistics.
The 3PL subsidiary gives ODFL an opportunity to pursue its expansion beyond the less-than-truckload market into new areas of transportation management. The portfolio of the new division includes warehousing, dedicated carriage and warehousing, logistics services and truckload brokerage, ODFL said.
The $1.5 billion LTL carrier named Michael Venegoni, a former group vice president at YRC Worldwide and vice president YRC Logistics, president of Vault.
Like many large LTL carriers, ODFL has been diversifying its services since the recession, expanding into areas such as dedicated carriage and drayage. Diversification not only helps LTL carriers expand into faster growing areas of transportation, but to find new ways to secure shipper freight.
“Customers are asking for a broader range of solutions and innovations across increasingly complex and dynamic supply chains,” said ODFL President and CEO David S. Congdon. “Vault Logistics is a significant investment in our future and expansion of our capabilities to help our customers thrive in the new economy.”
ODFL surveyed shippers and found fewer than one in five transportation managers were “completely satisfied” with their 3PLs, said Venegoni, whose career also includes stints with Direct Container Line, Intertrans and Flying Tiger Airline. That creates an opportunity for logistics expansion at ODFL and Vault.
Thomasville, N.C., ODFL increased its profit 83.1 percent to $39.4 million in the second quarter, as revenue rose 30.4 percent to $480.3 million.
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