Less-Than-Truckload

Logistics Management Group News Editor Jeff Berman recently spoke with new Con-way Freight President Greeg Lehmkuhl and Con-way President and CEO Doug Stotlar about Con-way Freight, the LTL market, and other factors impacting the trucking industry.

ODFL officials said that the opening of this new location is spurred by significant growth in this region.

The financial restructuring of less-than-truckload services provider YRC Worldwide appears to be complete based on news late last week noting that company shareholders unanimously voted to have YRCW common stock diluted, according to media reports.

Company officials said this move was driven by increased growth in this area, adding that ODFL will hire 12 new employees to work out of this facility. ODFL now has four Wisconsin-based service centers and 214 throughout the United States.

FedEx Freight, the less-than-truckload (LTL) subsidiary of FedEx, said this week it opened three new markets in Mexico on August 1, rolling out service centers in Toluca, Puebla, and Veracruz.

Effective September 6, ODFL will implement a GRI of roughly 4.9 percent.

In early 2009, the United States Postal Service (USPS) stated its intent in a filing with the Postal Regulatory Commission (PRC) to launch a market test to provide service akin to a less-than-truckload (LTL) network. But in a filing submitted to the PRC on August 19, the USPS said it intends to shutter this initiative—it entitled “Collaborative Logistics”—on September 19.

Earlier this week, less-than-truckload (LTL) transportation services provider Old Dominion Freight Line (ODFL) broke ground on a service center expansion at its Indianapolis-based regional hub.

With the recent news of rate increases being implemented by large less-than-truckload companies come various reasons behind these increases. At the top of the list for many carriers are equipment expenses and the costs related to hiring and training drivers. LM Group News Editor Jeff Berman recently had the opportunity to chat with A. Duie Pyle President of Steve O’Kane about these factors.

There is new optimism, fresh capital and a familiar face at the wheel of financially ailing LTL giant YRC Worldwide as it hopes to end a five-year slump in which it has lost in excess of $2.6 billion, and tries to shed its infamous title of biggest money-loser in the history of trucking.

The company yesterday rolled out an average GRI of 6.9 percent which will cover non-contractual shipments in the United States, Canada, and Mexico, with increases varying by lane and shipment type, according to company officials.

It appears to be the season for less-than-truckload rate hikes, with Con-way Freight, the LTL subsidiary of freight transportation and logistics services provider Con-way Inc., announcing it is raising its rates by 6.9 percent, effective August 1.

YRC Worldwide has obtained commitments for a three-year, $400 million asset-based loan (ABL) facility that will replace its current asset-backed securitization (ABS) facility.

ABF received a dose of good news earlier today, when the United States Court of Appeals for the Eighth District changed course on a previous dismissal made by a lower court regarding ABF’s lawsuit against the International Brotherhood of Teamsters, YRC, Inc., Trucking Management, Inc. and other related entities.

Following the lead of UPS Freight, ABF Freight System announced today it will raise its rates by roughly 6.9 percent, effective July 25.