Feb 5 (Reuters) - Old Dominion Freight Line ( ODFL )

reported a year-over-year fall in fourth-quarter revenue on

Wednesday, as the less-than-truckload carrier hauled fewer

shipments in the quarter.

The U.S. freight industry has seen a downward trend since

2022 owing to higher capacity, lower rates and only seasonal

improvements in volumes. Experts, however, expect the situation

to improve by the second half of 2025, buoyed by a significant

increase in pricing.

"The challenging macroeconomic environment over the past

couple of years has created persistent demand headwinds for our

business," said Old Dominion's CEO Marty Freeman.

He said the company's fourth-quarter results reflect the

ongoing softness in the domestic economy.

Old Dominion's total revenue fell 7.3% to $1.39 billion in

the quarter, which was in line with analysts' estimate,

according to data compiled by LSEG.

Less-than-truckload companies carry multiple shipments from

different customers on a single truck, which are then routed

through a network of service centers where they get transferred

to other trucks with similar destinations.

The Thomasville, North Carolina-based carrier, which caters

to companies in the retail, manufacturing, automotive and

healthcare sectors, reported profit per share of $1.23, down

16.3% year-over-year, but above analysts' estimate of $1.16 per

share.

The company handled a total of 2.8 million shipments in the

fourth quarter, down 6.1% from a year earlier. Its revenue per

shipment fell 1.1% from a year ago.

Its quarterly operating ratio, a key metric indicating

operating expenses as a percentage of revenue, deteriorated to

75.9% from 71.8% a year ago.

A higher operating ratio reflects an increase in costs,

suggesting lower profitability.

(Reporting by Abhinav Parmar in Bengaluru; Editing by Mrigank

Dhaniwala)