Cut-throat pricing in the trucking sector is being exacerbated by what appear to be efforts of some competitors to drive struggling YRC Worldwide Inc. out of business, an industry executive said Wednesday.
David Congdon, chief executive of Old Dominion Freight Line Inc. cited the economic downturn and trucking overcapacity as culprits behind "the worst pricing environment we've ever experienced."
But he also said in an interview that some of the pricing trends likely stem from deliberate moves to undercut YRC, a top but financially teetering player in the less-than-truckload, or LTL, shipping market. Less-than-truckload shippers consolidate freight from multiple customers onto single trucks.
A spokesman for YRC, which reports third-quarter results Friday, declined to comment, citing proximity to the earnings report. The debt-laden company also faces a deadline Friday to meet some covenants of its credit agreements, although it has won repeated leniency over the past year as its lenders have hesitated to push it into bankruptcy. Full Story........