Wednesday, December 24, 2014

Help yourself do your job quicker.  Get the new Freight Density Calculator at the Google play store and now available on ITunes.




Sunday, January 26, 2014

YRC and Teamsters agree to a contract

YRC and International Brotherhood of Teamsters have agreed to a contract that will save the company from heading into bankruptcy.  The teamster agreement gives the banks the ability to provide the loans necessary for YRC to stay afloat. YRC has had many contract re-negotiations with the Union over the years.  No one would be surprised if they were back at the table in another year or two.  YRC has many dynamics facing them in the market.
No matter what your feelings are about YRC, it's great that they saved 30,000 jobs from going extinct.


LTL TRAFFIC.COM 

Thursday, January 9, 2014

YRCW - The Union Tells YRCW NO!

The Union has told YRCW no to the new contract extension.  This is a setback for YRCW and bankruptcy looms closer.  Some sources have told me that YRC has told the Union if they don't return a yes vote that YRCW would be out of business in 19 months.  They will not be able to cover the cost.  The Union and YRCW have been able to work through many obstacles over the years.  It looks like they have another hurdle to jump to keep YRCW afloat through 2015.  


YRCW still runs a 1.4 billion-dollar debt that it just can't pay.  Since 2007, YRC has lost over 3.1 billion dollars and will report another loss in excess of 99 million for 2013.  The Teamsters from Yellow, Roadway and Holland helped build rock solid companies over the years.  It's not the Union/Teamsters fault.  This company had a CEO named Bill Zollars who spent money like a drunken sailor on liberty in Hong Kong.  Let the record be clear, YRCW bit off more than they could chew, and now they continue to choke off of the drunken sailor's bar tab of 1.4 billion.  YRC's stock closed down 15% today.  In after hours trading it is down 19 percent. Those numbers will probably continue to slide on Friday. 

Trucking fans it doesn't look good for YRCW.  We will know more on Friday.


LTL TRAFFIC.COM

Wednesday, November 13, 2013

YRC - Heading back to the union again

November 14, 2013

Jim Welch CEO of YRC recently sent out a letter to employees that contained the following statement in it,
"we have all worked too hard and sacrificed too much to go that route and lose some of the industry's best jobs."  Why did Mr. Welch make that statement?  YRC's lenders are demanding a renegotiated union contract as a condition for refinancing their debt.

YRC has fought to stay alive, and they have been very creative in doing so, but they just can't seem to alleviate the debt that consumes them.  396 million matures next year.  A total of 548 million matures the following year.  They need the union to renegotiate the contract again.  They have to get this done or Mr. Welch and YRC will face the inevitable.  Yes, BK.  The banks are demanding that YRC renegotiate with the union or the company will go BK.

I believe the union will continue to work with YRC, but the problem is much larger than just union wages for YRC.  The LTL industry is faced with many competitors.  During the downsizing/integration of YRC, many of their competitors gained business due to the issues that YRC was going through.  During the integration of YRC, the company lost over 4 billion dollars in revenue.

It's difficult for YRC to increase their business and revenue in today's LTL world.  The other carriers have caught up. The 1.2 billion debt total for YRC is going to be difficult to pay down in the current LTL environment.  They may never be able to pay all of it.
If YRCW doubled their business, they still wouldn't be able to pay their debt down.
The options are obvious and the hole YRCW has to slide through is getting smaller.

Mr. Welch is going back to the same well (Union Pockets) that Bill Zollars had to go to.  What more can the Union do?  They can't pay down the debt for YRCW.  The union has worked with YRCW and probably will again, but this didn't solve the problem the first time and won't now.  YRCW is kicking the can down a dead-end street.

What are YRC's options?

1. They get the Union to agree, and they live another day.

2. They sell Holland (YRC goes out of business quicker)

3. They sell New Penn, Holland and Reimer (YRCW OOB)

It's sad. A lot of people could lose their jobs over it.  The union didn't tank YRC; Bill Zollars did.  Bill Zollars tore this company down with his extreme appetite for over spending on smaller carriers.  The Roadway share holders and the Roush family were smart to sell at double their stock price.

LTL TRAFFIC.COM

Wednesday, October 30, 2013

LTL TRAFFIC.COM: ABF teamsters reject a strike vote

LTL TRAFFIC.COM: ABF teamsters reject a strike vote

ABF teamsters reject a strike vote



Good news for ABF.  The ABF Central Region has rejected a strike vote.  This puts ABF on course to ratify their contract and positions ABFS to save on cost over the term of their contract.

ABFS stock is trading roughly 4pct up at 28.60 a share.  All that ABF has to do now is produce a profit and keep YRCW out of their office.  ABF has been known to manage their business well.  I believe they will get on track to do so. 

LTL TRAFFIC


Wednesday, October 16, 2013

ABF STRIKE UPDATE


ABF Strike Update; ABF has provided the teamsters a final offer.  Both parties have until Oct 29, 2014 to ratify the two remaining items left in their contract.     27 of 29 items were ratified back June 2013.  Both parties are instructing employees to vote no on the strike.



I think both parties will agree to end the dispute and ratify all 29 items.  ABF would be devastated by a strike.  If a strike happens,  ABF and YRCW would resume talks of a purchase.

LTL TRAFFIC