January Business Update
Contributed by: Eric Vander Pol, Co-President
Once again God continues to bless Oak Harbor Freight Lines with the right people on the team to perform, and this team showed up in 2022 producing record results. For the year, the company finished with an operating ratio of 91.98% compared to 93.84% the prior year. These record results could not be achieved without having the amazing team that we do, and without that team showing up day in and day out ready to perform. Congratulations and Thank you to each one of you!
Operations Results
How did we achieve these results?
Here were the biggest driving factors behind our improvements:
First off, improved revenue. Not just more revenue, but improved revenue. Due to market conditions and cost increases across the board, we were forced to adjust rates for our customers to ensure we were getting paid the appropriate price for services provided. Our pricing/sales teams did a great job of ensuring this was accomplished.
Secondly, matching the appropriate labor to our workload. This is always key in our business and industry, both when business is busy and when business is slow. For 2022, we actually hauled 1% less shipments than we did in 2021, but with extra staffing and an increased focus on our weight per trailer, we were able to cut out significant costs in using cartage for delivery, and cutting the use of contracted linehaul. When we haul and deliver our freight with OHFL drivers, we perform and operate much better.
Next off, our on time service improved. For the entire year of 2022, the company picked up and delivered just over 1.7 million shipments. And 1.5% improvement on service equates a reduction of 25,500 late shipments. This means less re handles on the dock, less opportunities to lose or damage a shipment, and all of the other costs associated with picking up and delivering freight. Improving service makes us more efficient.
The last main item I will focus on was our improved safety numbers. Working safely and in a safe environment should be always be a priority at each one of our facilities across the network. With our extra focus on this area, we saw a reduction in time loss injuries and accidents in 2022. These improved safety metrics mean improved profitability, but more importantly mean more people able to function at normal capacity at work and home on a daily basis.
The company has always kept with the theme that “when the company does well, we all benefit.” This rang true again in 2022. Our Quarterly Bonus Program paid out nearly double the bonuses in 2022 ($1050) compared to 2021 ($600). The company was also able to increase wages back in November of last year, as well as increase the 401k matching program from 50% up to 100%. This means that Oak Harbor will match your 401k donations dollar for dollar up to 5% of your earnings starting this year. We would encourage you to take advantage of this benefit, and if you have further questions to reach out to Human Resources for answers.
Dan and myself are excited to be getting out to the terminals again starting right away this year. We look forward to meeting with you. Once again, congratulations on a record year and we look forward to improving on those results in 2023!
