Wednesday, February 2, 2011

Some Good News For US Truck Companies As Freight Haulier Profits

Others However Still Give Cause for Concern
Shipping News Feature

US – In the past year or so we have seen extreme disquiet amongst those involved in haulage in general and less than truck load (LTL) operators in particular. With the ongoing saga at YRC Worldwide attracting criticism from competitors, sufficiently serious to engender court action, and ongoing comments that the part load market is still oversupplied, the latest news from Old Dominion Freight Line (ODFL) is to be welcomed.

In a fourth quarter report ODFL turned in a net profit of over $22 million, as compared with the same period last year, up 127% on the previous $9.7 million. Revenue was up 28% to just under $400 million, coupled with a tonnage increase of over 20% and David Congdon, President and Chief Executive Officer of Old Dominion commented that at least some of the growth was attributable to the increase in U.S. industrial production and manufacturing, “…which has not only boosted volumes for transportation providers, but also decreased excess capacity in our industry.”

For their part YRC learnt yesterday that the lawsuit being prosecuted against them by ABF Freight System as detailed in our previous article is to be considered as a priority by the Federal Appeal Court which will hear the arguments in their sessions of 11th to 15th April. By that time the next round of negotiations between YRC and the Teamsters, scheduled to finish on the 15th March, may have seen the issues of pay and pensions resolved one way or another.