Tuesday, November 24, 2009

Greatwide Logistics Acquires YRC Division

Start of the Consolidation?
Shipping News Feature

USA – Third-party logistics provider Greatwide Logistics Services has announced that it is to acquire the Dedicated Contract Carriage (DCC) division of YRC Logistics, a subsidiary of YRC Worldwide. Greatwide will absorb the equipment and personnel from DCC Division as well as taking over its existing contracts, effective immediately.

The acquisition means that Greatwide will acquire new customer contracts in the grocery, steel and auto industries throughout the United States.

“The business obtained through the acquisition of YRC Logistics’ Dedicated Contract Carriage aligns perfectly with our industry-leading position in providing dedicated transportation to food and grocery, consumer products and retail customers, while also strengthening our presence in the industrial sector of the market,” said Raymond Greer, CEO of Greatwide Logistics Services.

“This acquisition allows us to expand our capabilities to include flatbed dedicated service and apply our transportation management services expertise to new industrial shippers.”

Such a move had been anticipated by industry observers who have noted that YRC has been suffering from the reductions in the cargo market and oversupply in the US domestic trucking sector. It remains to be seen if further consolidations are to follow.