Fall Business Update
Contributed by: Eric Vander Pol, Co-President
Leaves are turning yellow, and the air is beginning to chill meaning fall has arrived. This is always an exciting time of the year as the Holiday season is right around the corner. It is our hope that you and your families are able to connect and spend some quality time together over Thanksgiving and Christmas this year. The first core value at Oak Harbor Freight Lines is Family Comes First and the holidays are great opportunities to enjoy time off work and with whomever you call family.
As for life here at Oak Harbor, I wanted to take a quick minute to update you on how the company is progressing through 2024.
Once again, the Good Lord has blessed our company with another year of success in business. Here are some bullet points highlighting the metrics and projects we are focusing on this year:
Shipment Count
First off, our level of business has remained solid. Comparing this year to last year, our shipment count is up 7% and our revenue is up over 10%. These are great numbers when you consider we are operating in a relatively soft market and economy right now. The majority of our growth (for outbound freight) has come from CA, NV, UT, and AZ. The PNW as a whole is very soft right now, and we are actively looking to add additional business in these states. Remaining as close to balanced as possible helps our profitability. Nobody pays us to haul empty trailers.
Operating Ratio
Secondly, while our shipment count and revenue have risen past our goals for the year, our profitability has actually slipped a touch thus far. Year to date our OR is 0.75% higher than the prior year. We have seen inflation hit pretty hard on the maintenance, equipment and healthcare sectors of our business. We are taking some steps to help flatten the maintenance related costs with a reduction of outside vendors and more work in house. We expect improved results in the fourth quarter along this line.
| . | . | . | . | . | . |
| Service Improvement | |||||
| 95.66% | |||||
| 2.97% | 92.90% | ||||
| change | last year | ||||
| . | . | . | . | . | . |
Service Improvement
Our year over year service has improved from 92.90% up to 95.66%. This is a drastic improvement as we have reduced our number of late deliveries by over 30%. These improvements are a direct result of our teams being well staffed and our new CPR process keeping our teams focused on all facets of the business. Maintaining a superior level of service over our competitors ensures our longevity and brings our customers Peace of Mind. Thank you to all for your efforts along this line!
Optym Transition
Lastly, our transition from Cheetah to Optym is nearing the finish line. Over half of our terminals are already operating on the new platform and finding our efficiencies to be improved as a result. The remaining terminals will be on board before year end. This transition has been no small task and there are numerous individuals to thank for their efforts along the way. I want to specifically shout out Tom Sanchez, Tom Miller, Joe Cook and Mike Coons as they have put in many hours on this project. Thank you all for your efforts!
Patterson, CA
As for looking out into 2025, the biggest item on the horizon will be the opening of our new terminal in Patterson, CA. This terminal is currently under construction and if all goes to plan will be opening around April of next year. Stay tuned for more announcements about this facility and the job openings that will come with i
In closing, we are very grateful for each member on the team here at Oak Harbor Freight Lines. We have been blessed as company for many years and the future looks bright. It is our hope and prayer that each of you have a wonderful Thanksgiving with family and friends, and a Merry Christmas celebrating the birth of our Savior.