Yellow Freight - Rate Cutters?

[ATCO]

This is interesting info about truckload...
I know it's the LTL section, but as we know Yellow is a LTL carrier...

Here is whats interesting...

Shipping with Yellow, you get the benefit of same-day pickups on truckload shipments and variable-length service agreements. Additionally, on some lanes, we offer exceptional values; view them on the MyYellow Internet Specials page, then get your truckload quote and book your shipment today!

Special Values Sneak Peek
Yellow offers shipment rates from $0.60 per mile for one, 28-foot van and $1 per mile for a full schedule (two, 28-foot vans) on special lanes outbound from the following cities:

Albuquerque, N.M.
Amarillo, Texas
Atlanta
Baltimore, Md.
Boise, Idaho
Boston
Butte, Mont.
Casper, Wyo.
Chicago Ridge, Ill.
Dallas
Denver
Houston
Jacksonville, Fla.
Kansas City, Mo.
Laredo, Texas
Manchester, N.H.
Maybrook, N.Y.
Miami, Fla.
Middletown, Conn.
Oklahoma City
Orlando, Fla.
Portland, Maine
Reno, Nev.
St. Louis
Tampa, Fla.
Tracy, Calif.

$.60mi for a 28' pup or $1.00mi for 2 - 28' pups... come on Yellow, just becauseyou can, doesn't mean you should! I noticed Central Freight pulling some Swift trailers, I wonder what they are up to...

topic comes from another forum I regular, but felt it interesting enough for discussion here... Original post credit goes to Rob Archer.

[towstrap]

Your not suprised are you? They do what they want cause they can. It is a sad day when those who claim to have set the standard for the industry are the very ones hauling cheap freight. :wtf: :rofl:

[ATCO]

Your not suprised are you?

not one bit, figured the rest of us should know though...

[DrivingZiggy]

I'm surprised, because they still have to pay their drivers union wages. :wacko:

[truckermanitoba]

I know that reimer express here in manitoba is hauling alot of yellow freight pups up here. They are dropped in reimer yard than yellow picks up and takes to there wharehouse and breaks apart and delivers freight. Seems like lots of trailers of freight . They are looking for teams of drivers to haul tham up here,They pay well over quoted rate so rates will have to go up only lose money for so long.This is one case were a fast card will speed things up.

[ATCO]

Being that Reimer was the big Roadway contract in Canada, I'm not suprised at all Yellow is dumping their pups on them too... Good deal for Reimer I'd suspect... BTW, Roadway was bought by Yellow.... Anyways, Riemer should watch it's back, Yellow has a way of buying up companies lately, and I'd hate to see the green/white trucks go away...

So far as I know this is just deal on truckload freight...

The problem is Yellow is such a heavyweight in the industry, this really isn't that good of a sign. IMO

[daytrader]

Volume freight. Like Wal Mart.

[Big_Dave]

Volume freight. Like Wal Mart.
That's kinda what i was thinkin'. :angry:

[daytrader]

10, 10 pound boxes at .60 cents a mile in a pup is 6.00 a mile. Now fill the other 20 feet. They are working on around 20 dollar a mile rates. Now, on the truck load side. I have no clue what they are working on.

The LTL side pays off. Lots of handling. A pallet here a box here, two skids here 30 crates here. It adds up big time.

It isn't truck load. It may be broke 3 to 10 times. That is 3 to 10 times it has to be handled. LTL has high damage rates. Bring in the interline carriers that do not give a damn. It really adds up.

I was told that with interline ops. They mark 20% as freight claims. I do not know this for fact. Just what I was told.

[hellcat_99]

Yellow owns Reimer.

[ATCO]

Yellow owns Reimer.

LOL, I JUST found that out... was visiting with the Roadway driver just now... =)

[hellcat_99]

They also just bought out USF.

[ATCO]

They also just bought out USF.

heh, I already knew about that one :D

One thing of interst was that Yellow and Road way were a couple of the last "Union" LTL carriers... I forget who else he said was. He did mention that USF, being non-union was one thing Yellow liked about the deal.

Whats with these Union companies (Yellow and UPS) desiring to purchase, and ultimatly have bought out non-union companies (USF and Overnite/Motor Cargo)? Whats the advantage? If the union strikes, they can still move freight?

[DrivingZiggy]

Or maybe they can then shut down the unionized divisions, hence getting rid of the unions.

[daytrader]

Bet some Old CF drivers are thinking the same thing.

[Company5]

Let's bring this one back up to the top. Read yesterday that Roadway has begun a bunch of hard layoffs. You can't just haul stuff and make a dime off it and remain profitable forever. I believe it was Redstar that was operating at 105, and see where they are today. There is a bunch of LTLs that will sell their souls to get accounts only to provide poor service or create too many damages.

[Big_Dave]

There is a bunch of LTLs that will sell their souls to get accounts only to provide poor service or create too many damages.
Sadly it's not just the LTL segment of this industry that does this.

Covenant undercut our company at one of our main customers. Even with all of Covenants crappy service and late deliveries, we had a hard time getting 'our loads' back.

The company I used to be leased to had an account to haul cardboard boxes into a meat packing plant. We did it for around $500 a load (one way), and then had a reload back to the Twin Cities from Sioux City or Sioux Falls. Dart came in and undercut us by $175. :yikes:

The company never did get that run back as far as I know.

[towstrap]

Let's bring this one back up to the top. Read yesterday that Roadway has begun a bunch of hard layoffs. You can't just haul stuff and make a dime off it and remain profitable forever. I believe it was Redstar that was operating at 105, and see where they are today. There is a bunch of LTLs that will sell their souls to get accounts only to provide poor service or create too many damages.

My guess is that with all the mergers that took place to put all the USF's, Roadway's and Yellow's under one roof caused a whole lot of overlapping. It only serves to reason to cut the fat. Next will be the increase in H/W and a reduction in wages. When the union and it's members say no, it's gonna be Katie bar the door. I called this long ago, the UAW would go down then the Teamsters. If the UAW don't hurry, it could be the other way around.

[ATCO]

this is kinda skating on being a Union forum subject, but I don't care. :)

I remembered who the 'third' union carrier is in the LTL industry... It is Arkansas Best Freightway (ABF)... I don't know a lot about them, but feel like if we start seeing union carriers - do the CF thing - and go under... I feel ABF will be the first to die... SO far as I know, they are fully union, and don't appear to have a very good share of the LTL market. Yellow/roadway still has some clout.

One thing I've noticed about the union carriers, as a shipper, is that they have the "Take it or leave it mentality" when it comes to shipping with them... They don't seem to give a care to work with the small business, and ultimatly increase their market share... Perhaps it's because they can't trully compete because of the unions - a strangle hold...


On another note though, Central Freight Lines (CFL) does appear to be struggling. They have been laying off people - and maybe close to closing terminals. It appears they haven't fully recovered from the EOFF (Eastern Oregon Fast Freight) merger... Too much growth with a poor regional carrier... Many competetors were able to steal away EOFF's customer base with better, uninterupted service. Stock prices for CFL or VERY, VERY low... Swift owns CFL, but I'm unsure of whether they are funding CFL enough to withstand the storm, or if they'd even just let it go under... Personaly I don't see CFL going under, and I think the stocks were a plan to infuse the company with some quick cash. Eitherway, they are struggling... I know many that have moved over to Overnite - for better pay and job security...

[daytrader]

Swift Owns Central Refrigerated Freight. Not Central freight. Yes that company is very much in a hard spot right now.

UPS wanted to buy us. CCX. The purchase price was to high for the outstanding stock shares. We all wanted it, but it didn't happen. They did take some of our none profitable markets. Like Emery and Menlo.

The LTL market is HOT HOT HOT. I mean we are smokin. Many are not undercutting for biz they are marking up. Pay more for better service. Not pay less for the same service.

I ordered 10 5 gallon buckets Monday from U line. I priced on their web site the shipping. They have it were you have like 10 choices. My own company was 20 bucks higher(CCX). I opted for the UPS cheaper. Next morning a CCX driver from Salem Illinois delivered my package from UPS. Next day service. I love it. I paid for 3 day (UPS GROUND)!

Since they took over MENLO we haul a chit load of UPS.

[saddletramp]

Too bad we didn't have this discussion in the union forum. Joe, I think you will see more regional carriers like Oak Harbor Freight Lines, the USF's like Reddaway and Holland, and others become the majority one day in the union carrier bracket.
Everyone always assumes at contract time that the big carriers will be out on the street but I dont really see that happening. The senate today passed the pension reform bill that will make these companies fully fund their pensions, and they cannot use excuses like the airlines have gotten away with to get out of these obligations they have to their employees.

At UPS, we are hauling freight in those 28 foot flatfloor trailers you see us pulling. Yes, we now have O'nite and Motorcargo but they are pretty much doing there own thing. I am sure there is some work that is being directed to them but our trailers are full and we are putting on drivers; and not just for Christmas!!

[ATCO]

Swift Owns Central Refrigerated Freight. Not Central freight.

Jerry Moyes - the owner of Swift also has a special interest in CFL. When Central Freightlines was apart of the Caliber System (Ex. Roadway), and the merger brought Viking, Central Freightline, Spartan and Coles together - which later became Fed Ex Freight with the addition of American Freightways... During this time of combining the company, so I've been told anyways, The Viking side was sucking a lot of money from the rest of the companies... CFL saw this as a bad thing, something that could close their doors. The employees decided to try and buy back CFL's interest, and were seccesful with the help of a check from Jerry Moyes...

This is 'second hand' information, but if you watch CFL's operations, you'll notice Swift 53' trailers being utilized occosionally. They have such a trailer assigned to the terminal here, for the Target account they have.

Recently I heard Moyes offering to buy back CFL stocks at $2.25 a share... Amazingly, if he does this, he will still have made money in the deal... The whole buy low sell high worked out for him with CFL...

I'm almost willing to start up a discussion about Moyes... And yes Central Refridgerated is owned by Moyes... It is what is left of the the old Dick Simon... So yes Swift (Jerry Moyes) owns CFL...