YRC reports tonnage declines and revenue gains in 3Q update

Less-than-truckload transportation services provider YRC Worldwide reported mixed operating metrics for the first two months of the fourth quarter this week.

YRC Freight, the company’s largest operating unit, saw tonnage per day in October fall around 7.1% annually, with November tonnage per day down around 1.4% annually.

And on a quarter-to-date basis through November, YRC Freight revenue per hundredweight was up around 8.8% on an annual basis, with revenue per shipment up around 5.3% for the same period. 

YRC’s Regional segment, which is comprised of New Penn, Reddaway and Holland, saw October tonnage per day drop around 5.5% annually, with November tonnage per day decrease around 6.5% annually.

On a quarter-to-date basis, YRC Regional revenue per hundredweight rose around 8.6% annually, with revenue per shipment up around 8.7% annually.

In the third quarter, YRC reported consolidated operating of $1.304 billion and consolidated operating income of $41.2 million, which included a $1.9 million net loss on property disposals. And compared to the the third quarter 2017, these results included operating revenue of $1.251 billion and consolidated operating income of $43.4 million, which included a $1.3 million net loss on property disposals. Third quarter net income, at $2.9 million, was down compared to the third quarter of 2017, which came in at $3.0 million

In September, when YRC provided an operating metrics update for the third quarter, it explained that while its revenue per hundredweight statistics at each of its operating companies were strong, they are being offset by the impacts of additional heavier-weight shipments in its network.

And CEO Darren Hawkins said at that time that YRC maintains that its ongoing commitment to reinvest in its equipment will position the company to effectively deliver quality solutions to our customers and continue to meet the sustaining demand for freight services in this strong economic environment.

YRC’s data continues to highlight an ongoing trend, in the LTL sector, of revenue per shipment topping tonnage.

This has been attributed to various factors, with an LTL stakeholder whom declined to be identified saying that LTL carrier increases are now very specific and very targeted, with different levels of rate increase based on different types of shipments, coupled with some minimum charge shipments heading up more rapidly than in the past, which is, in turn, creating totally different pricing activity. And as these rate increases go into effect, he said that this makes the annual revenue per shipment numbers look better.