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YRC Changes Names to Yellow

Kristi Ruggles — Tue, 09 Feb 2021 20:11:11 +0000

Association partner YRC is now the Yellow Corporation, which is the restoration of a previous company name represented by the “Y” in YRC.

“As we continue our transformation into a super-regional, LTL freight carrier, it is the right time to reintroduce the Yellow Corporation name and modernize the holding company brand,” said CEO Darren Hawkins. “The Yellow brand is synonymous with the LTL industry and we are honored to continue its proud legacy of service with one of the largest, most comprehensive logistics and LTL networks in North America.”

The company’s LTL brands—Holland, New Penn, Reddaway and YRC Freight, as well as HNRY Logistics—continue to operate under their existing names.

Source: Yahoo!Finance

YRC Gets $700 Million Loan from Treasury

Kristi Ruggles — Tue, 14 Jul 2020 18:12:00 +0000

The U.S. Treasury is providing a $700 million loan to YRC Worldwide, which warned in May it faced serious financial challenges without assistance.

The loan is part of the federal CARES Act meant to help small businesses. YRC is eligible because the CARES Act also helps businesses critical to national security. A statement from the U.S. Treasury said the loan was justified by the fact that the company provides a majority of the trucking services moving pallet-sized shipments of freight for the U.S. military, a segment of the industry known as “less-than-truckload,” or LTL.

“Treasury’s determination was based on a certification by the Secretary of Defense that YRC is critical to maintaining national security,” the statement said.

Taxpayers will end up owning 30 percent of the company’s stock as part of the loan agreement.

YRC warned in May that there was “substantial doubt” about its ability to stay in business without either federal help or a “meaningful stabilization of the economy in the near term.” On June 9, YRC warned that its per-day shipments were down 20 percent in the quarter, and the rates it was receiving per pound of freight moved were down 6 percent from a year earlier.

About half the loan money will be used to cover short-term contractual obligations, including pension and healthcare benefits. The loan will be due in 2024.

YRC is an endorsed service of the Association. Members receive a discount on LTL shipments.

Source: CNN on MSN

Truckload Market Changes May Lift LTL Market

Kristi Ruggles — Tue, 03 Mar 2020 19:44:41 +0000

YRC Worldwide, which collectively represents the second-largest group of carriers in the $43 billion less-than-truckload (LTL) sector, will benefit from closings and reduced capacity in the $340 billion full truckload (TL) market, according to analysts and top YRC officials.

“The year 2019 probably ended with close to 800 closings in the truckload industry,” YRC Worldwide President and CEO Darren Hawkins said. “That lessens capacity. Plus, the driver shortage, increased alcohol and drug screenings, the insurance market, all those things will impact capacity. The truckload market is (nearly) 10 times the size of the LTL market. But a ripple in truckload can create a tidal wave in LTL,” Hawkins added.

At least one analyst agrees. Satish Jindel with SJ Consulting said he believed LTL contract rates for shippers would rise at a higher rate than TL rates in 2020.

“One reason LTL will perform better is retailers are converting TL shipments to LTL because of e-commerce demand,” Jindel said. “LTL carriers are handling more retail shipments than ever before. That will continue. The caveat is the LTL industry must learn how to handle those shipments.”

As far as shippers are concerned, Hawkins said rates will continue to track internal operational costs—led by soaring insurance rates and equipment prices—that continue to rise in the “mid-single digits.”

Going forward, Hawkins said, YRC will have fewer physical locations but the same geographic service areas.

“We expect this will increase density, reduce mileage, facilities and equipment and better serve our customers,” he said.

YRC, which is an Association partner, consolidated 25 terminals last year. YRC Worldwide, parent of the fourth- and seventh-largest groups of LTL carriers, lost $104 million last year, compared with $20.2 million net profit in 2018.

YRC’s total revenue for last year fell 3.4 percent.

Hawkins said YRC’s full-year results from 2019 are hurt by comparisons with 2018, which was a boom year for trucking. Last year’s results, he said, were hurt by a slump in U.S. manufacturing.

Source: Logistics Management

YRC CEO Sees Light at End Tunnel for LTL Long-Haul

Kristi Ruggles — Wed, 19 Feb 2020 21:07:19 +0000

“The year 2019 probably ended with close to 800 closings in the truckload industry,” YRC Worldwide President and CEO Darren Hawkins said in an interview with Logistics Management. “That lessens capacity. Plus, the driver shortage, increased alcohol and drug screenings, the insurance market, all those things will impact capacity. The truckload market is (nearly) 10 times the size of the LTL market. But a ripple in truckload can create a tidal wave in LTL,” Hawkins added.

One top analyst agrees with Hawkins. Satish Jindel, principal of SJ Consulting, which closely tracks the LTL sector, said he believed LTL contract rates for shippers would rise at a higher rate than TL rates in 2020.
“One reason LTL will perform better is retailers are converting TL shipments to LTL because of e-commerce demand,” Jindel said. “LTL carriers are handling more retail shipments than ever before. That will continue. The caveat is the LTL industry must learn how to handle those shipments.”

As far as shippers are concerned, Hawkins said rates will continue to track internal operational costs – led by soaring insurance rates and equipment prices – that continue to rise in the “mid-single digits.”

Going forward, Hawkins said, YRC will have fewer physical locations, but the same geographic service areas.

“We expect this will increase density, reduce mileage, facilities and equipment and better serve our customers,” Hawkins said.

YRC consolidated 25 terminals last year and will continue to evaluate, he said.

YRC Worldwide, parent of the fourth- and seventh-largest groups of LTL carriers, lost $104 million last year, compared with $20.2 million net profit in 2018. YRC’s total revenue for last year fell 3.4 percent.