The head of transportation and logistics company YRC Worldwide Inc. said Wednesday that he has started seeing some bright spots in the economy but that the overall environment is "still a bit like crawling over broken glass."
Meanwhile, YRC's shares followed other trucking stocks in a downward spiral after several analysts said first-quarter earnings reports likely will be worse than expected, as harsh winter weather compounds weak demand and record fuel prices.
YRC shares on Wednesday fell 85 cents, or 6.9 percent, to $11.40, below the previous 52-week low of $11.77.
Bill Zollars, chief executive of the Overland Park, Kan.-based company, told analysts at a conference sponsored by JP Morgan and broadcast over the Internet that YRC's attempts to restructure its troubled regional trucking business are starting to gain traction, although he also cautioned it was early in the process.
YRC, the nation's largest less-than-truckload carrier, last month said it was closing 27 service centers for its USF Reddaway and USF Holland brands and eliminating 1,100 jobs as it tried to give the struggling carriers smaller regions to work in.
"We've seen some pretty significant impacts," Zollars said. "Reddaway has snapped back almost immediately from the return to their normal market. Holland has also shown signs of improvement although that's going to take a little bit longer."
Less-than-truckload carriers combine shipments from multiple customers into a single load.
Zollars said he has noticed increased weakness from retail customers and that the overall economy hasn't changed in recent months, although he added that severe winter weather has made it difficult to gauge the exact health of the economy. He said the company has had better luck getting price increases as it renews shipping contracts with customers and has seen an uptick in the weights per shipment, which he said has typically pointed to economy recovery in the past.
"It's too early to call that as we haven't seen that across all companies, but that increase in weight per shipment is an encouraging sign and one we didn't have several months ago," he said.
Zollars' comments came after Baird analyst Jon A. Langenfeld cut his per-share annual earnings estimate for YRC from $1.25 to $1, noting that severe weather and fuel costs are driving up expenses across the industry. He didn't change his expectation that YRC will lose 20 cents per share in the first quarter.
Analysts surveyed by Thomson Financial expect annual earnings of $1.49 per share and a first-quarter loss of 17 cents.
Wednesday, March 19, 2008
Panel discusses hindrances, helpers of innovation
A forum on “drivers and impediments” to innovation, held Monday at the Kauffman Foundation, put permission to fail high among the “drivers.”“We celebrate innovation, even when it doesn’t work,” said William Zollars, chief executive of YRC Worldwide. “Our only rule is ‘fail fast.’ ”
Zollars said YRC has worked to break down its former hierarchical chain of command and push decision-making closer to the customer, making it easier to introduce innovations.
Tops on the “impediments” list: a U.S. education system that’s not turning out appropriately qualified graduates for the workplace, the panel said.
“Education and work worlds too often are spinning in separate orbits,” said Emily DeRocco, president of the Manufacturing Institute. “As the boomers line up at the exit doors in our manufacturing plants, we find almost no young workers ready to replace them.”
She said government incentives, educators and parents need to redirect attention to the value of technology-based education, keyed to the needs of today’s workplace.
Zollars and fellow Kansas City area chief executive Len Rodman of Black & Veatch contributed their business leaders’ perspective to a discussion led by U.S. Secretary of Commerce Carlos Gutierrez and Kauffman chief executive Carl Schramm.
Rodman said his engineering company sees three impediments to innovation — the declining trend in U.S. science and engineering graduates, U.S. immigration policies that limit access to foreign-born talent, and “legislation driven by concern of terror” that limits foreigners’ access to proprietary computerized information (which is a must for any company doing international business).
Gutierrez said that the U.S. has the ability to maintain its historical role as an innovation leader, but that businesses could benefit from “greater predictability on taxes” to help make investment decisions.
Also, Gutierrez said, U.S. isolationism is not the solution.
“We should put out the welcome sign for foreign investment,” he said.
“We shouldn’t be having debates about staying in NAFTA. … This is the most open economy in the world and we should stay that way.”
Schramm said the young U.S. generation entering the work force is demanding that businesses provide climates where innovation can foster.
“If they don’t get it, they will take their careers and go elsewhere,” Schramm said.
ABF Selects 2008-2009 Load Team
ABF Freight System, Inc. has selected its 2008-2009 Load Team, an elite group of freight-handling professionals from across ABF’s North American network. The Load Team members and their customer service centers are:
Erik Van Amen, Salt Lake City, Utah
Joseph B. Baety, Atlanta, Ga.
Jeremiah Shane Bergman, Dayton, Ohio
David Shane Crockett, Little Rock, Ark.
Lowell Mark Moore, Kansas City, Mo.
Ronald E. Patrick, Carlisle, Penn.
Ricky C. Self, Winston-Salem, N.C.
Mark Reed Shaffer, Dallas, Texas
Leonard Taylor, Chicago, Ill.
Warren E. White, Albuquerque, N.M.
“Load Team members exemplify an attitude of teamwork and commitment to meeting the needs of our customers through safe and efficient freight handling,” says ABF Senior Vice President of Operations Wes Kemp. “We acknowledge the contributions and the talents of these dedicated employees who make it possible for customers to trust ABF — knowing that more than 99 percent of all ABF shipments are moved claim free.”
The Load Team program was established both to honor outstanding performance and to draw upon dock employees’ insights regarding dock procedures and equipment. Members are selected on the basis of their safety records, involvement in ABF’s Quality Process, integrity and their ability to load trailers in an optimal fashion – a skill that facilitates the safe, timely, claims-free and efficient movement of shipments.
Erik Van Amen, Salt Lake City, Utah
Joseph B. Baety, Atlanta, Ga.
Jeremiah Shane Bergman, Dayton, Ohio
David Shane Crockett, Little Rock, Ark.
Lowell Mark Moore, Kansas City, Mo.
Ronald E. Patrick, Carlisle, Penn.
Ricky C. Self, Winston-Salem, N.C.
Mark Reed Shaffer, Dallas, Texas
Leonard Taylor, Chicago, Ill.
Warren E. White, Albuquerque, N.M.
“Load Team members exemplify an attitude of teamwork and commitment to meeting the needs of our customers through safe and efficient freight handling,” says ABF Senior Vice President of Operations Wes Kemp. “We acknowledge the contributions and the talents of these dedicated employees who make it possible for customers to trust ABF — knowing that more than 99 percent of all ABF shipments are moved claim free.”
The Load Team program was established both to honor outstanding performance and to draw upon dock employees’ insights regarding dock procedures and equipment. Members are selected on the basis of their safety records, involvement in ABF’s Quality Process, integrity and their ability to load trailers in an optimal fashion – a skill that facilitates the safe, timely, claims-free and efficient movement of shipments.
Monday, March 17, 2008
View From the Road
Thank a Trucker
By Dale Morrow
Mar 13, 2008 - 4:53:13 PM
This week my travels brought me to Tampa. Imagine, actually working in a city where I knew the location of most everything is. It was a pleasant change.
I had to pick up freight on east Broadway early Thursday morning, and then two freight pick ups in Lakeland later in the day. It does not seem very exciting, but the familiar streets and local sites were refreshing. The three partial loads were going to be delivered in Gainesville the following morning.
After all the pick ups were made, I decided to stop at a truck stop for the night just north of Tampa. I had a nice meal, and had my hair cut. Then I sat in the truckers lounge and enjoyed some television on a big screen. The next morning I woke up and proceeded north to Gainesville.
The scenery at the truck stop can be very interesting. I was parked close to the entrance to the fuel pumps. As I prepared to sleep, I completed some paperwork and listened to some music on the radio. As the evening progressed a parade of trucks passed before me while I looked through the windshield into the dark skies.
My imagination had visions of all the different places that these trucks had come from. Every imaginable type of freight was soon to be resting here along with me and my load. Car transporters, flat beds, van bodies, tankers and refrigerated trailers filled the lot.
Many men and women, far from their families and homes had stopped for some well deserved rest, many heading for Tampa with their loads.
Many truck stops offer conveniences and supplies that make our journeys down the highways more comfortable.
A safe place to sleep, to get a refreshing shower, and a good meal. This type of place is as close to a temporary home as some men and women get. Often drivers spend several weeks at a time away from there families. This can be an oasis of sorts to them.
Most people don’t think about the hardships that truck drivers sometime incur, while making sure products arrive for the pubic to enjoy.
Everything you buy has probably been brought to the store near you by a trucker. Night and day the wheels of America’s trucks turn so that commerce can continue.
When you shop this week, consider all the effort it took to get the products to you. You can probably thank a trucker.
My “View From The Road” this week recognizes the efforts of truckers that keep the economy moving.
By Dale Morrow
Mar 13, 2008 - 4:53:13 PM
This week my travels brought me to Tampa. Imagine, actually working in a city where I knew the location of most everything is. It was a pleasant change.
I had to pick up freight on east Broadway early Thursday morning, and then two freight pick ups in Lakeland later in the day. It does not seem very exciting, but the familiar streets and local sites were refreshing. The three partial loads were going to be delivered in Gainesville the following morning.
After all the pick ups were made, I decided to stop at a truck stop for the night just north of Tampa. I had a nice meal, and had my hair cut. Then I sat in the truckers lounge and enjoyed some television on a big screen. The next morning I woke up and proceeded north to Gainesville.
The scenery at the truck stop can be very interesting. I was parked close to the entrance to the fuel pumps. As I prepared to sleep, I completed some paperwork and listened to some music on the radio. As the evening progressed a parade of trucks passed before me while I looked through the windshield into the dark skies.
My imagination had visions of all the different places that these trucks had come from. Every imaginable type of freight was soon to be resting here along with me and my load. Car transporters, flat beds, van bodies, tankers and refrigerated trailers filled the lot.
Many men and women, far from their families and homes had stopped for some well deserved rest, many heading for Tampa with their loads.
Many truck stops offer conveniences and supplies that make our journeys down the highways more comfortable.
A safe place to sleep, to get a refreshing shower, and a good meal. This type of place is as close to a temporary home as some men and women get. Often drivers spend several weeks at a time away from there families. This can be an oasis of sorts to them.
Most people don’t think about the hardships that truck drivers sometime incur, while making sure products arrive for the pubic to enjoy.
Everything you buy has probably been brought to the store near you by a trucker. Night and day the wheels of America’s trucks turn so that commerce can continue.
When you shop this week, consider all the effort it took to get the products to you. You can probably thank a trucker.
My “View From The Road” this week recognizes the efforts of truckers that keep the economy moving.
Truckers Expect Record High Fuel Costs
Truckers see no exit from a fuel price "crisis" and expect diesel bills to break records in 2008, the industry's main trade group said Monday.
The American Trucking Associations said current price forecasts show the industry will spend $135 billion on fuel this year, up from $112.6 billion in 2007.
Diesel fuel rose more than a penny overnight to a new record Monday, surpassing a national average of $4 a gallon, up from $2.75 a year ago, according to AAA and the Oil Price Information Service. Meanwhile, light, sweet crude for April delivery fell $3.79 to $106.42 a barrel on the New York Mercantile Exchange in afternoon trading.
The ATA is asking Congress and the Bush administration to address the "crisis situation and move immediately to take steps to increase diesel fuel supply," including increased refining capacity and exploration of Alaska's Arctic National Wildlife Refuge and Outer Continental Shelf.
In the air, rising fuel prices have led to rising ticket prices. Some of the nation's largest airlines, including United and Continental, last week increased their fares by as much as $50 round-trip to help offset surging fuel prices.
Fuel is gaining on labor as the largest expense for motor carriers, said ATA President and Chief Executive Bill Graves. At close to 25 percent of total operating expenses, fuel typically represents the second highest expense.
The cost to fill fuel tanks on a typical tractor trailer has increased 116 percent, or $615, in five years, according to the ATA, whose members include United Parcel Service Inc. and Knight Transportation Inc. Trucks haul 70 percent of all freight and rising fuel costs could raise the cost of their cargo, including food, retail and manufactured goods.
The American Trucking Associations said current price forecasts show the industry will spend $135 billion on fuel this year, up from $112.6 billion in 2007.
Diesel fuel rose more than a penny overnight to a new record Monday, surpassing a national average of $4 a gallon, up from $2.75 a year ago, according to AAA and the Oil Price Information Service. Meanwhile, light, sweet crude for April delivery fell $3.79 to $106.42 a barrel on the New York Mercantile Exchange in afternoon trading.
The ATA is asking Congress and the Bush administration to address the "crisis situation and move immediately to take steps to increase diesel fuel supply," including increased refining capacity and exploration of Alaska's Arctic National Wildlife Refuge and Outer Continental Shelf.
In the air, rising fuel prices have led to rising ticket prices. Some of the nation's largest airlines, including United and Continental, last week increased their fares by as much as $50 round-trip to help offset surging fuel prices.
Fuel is gaining on labor as the largest expense for motor carriers, said ATA President and Chief Executive Bill Graves. At close to 25 percent of total operating expenses, fuel typically represents the second highest expense.
The cost to fill fuel tanks on a typical tractor trailer has increased 116 percent, or $615, in five years, according to the ATA, whose members include United Parcel Service Inc. and Knight Transportation Inc. Trucks haul 70 percent of all freight and rising fuel costs could raise the cost of their cargo, including food, retail and manufactured goods.
Members Overwhelmingly Endorse DHL National Contract in Massachusetts, Pennsylvania
Additional Meetings Planned for DHL Members Across the U.S.
In meetings held this past weekend, more than 600 DHL workers in Massachusetts and Pennsylvania voted overwhelmingly to support the new DHL National Master Agreement. During these first meetings scheduled to inform members of the highlights of the historic agreement, not one member in attendance voted to oppose the tentative agreement.
"Our principal officer told our membership how we felt," said John Murphy, chairman of the New England DHL negotiating committee, and Local 25 Vice-President and business agent. "This is the best contract we could have negotiated with DHL. I think it's a damn good contract for our members. When we got a motion to accept and adopt the contract there was no one against it."
Approximately 352 members of Local 25 and 250 members of Local 107 in Philadelphia attended meetings to learn about the tentative agreement.
"Coming into the meeting members had questions and some concerns. But when everything was explained and they got the real story, there was 100 percent support for the contract," said Bill Hamilton, President of Local 107 and Joint Council 53. "I think this is the best contract I've been associated with. Considering the wages, benefits and no-layoff guarantees, we've given the company the opportunity to grow and protected and strengthened our members" position."
"Without a doubt the overwhelming support from two of the largest DHL locals is strong sign," said Brad Slawson Sr., chair of the Teamsters national negotiating committee. "This shows that when members learn the details of this contract, they see its benefits. As additional meetings are held, we are confident that other members will also support this tentative agreement."
Unanimously endorsed 52-0 by local leaders who represent workers at DHL throughout the country on March 12, the tentative agreement is the first new national master agreement to be negotiated in more than 30 years. Members will be mailed voting ballots in the next few weeks.
Additional informational meetings are planned for DHL locals across the country. As more locals hold meetings, members will be updated regularly.
See more information about the tentative DHL National Master Agreement.
In meetings held this past weekend, more than 600 DHL workers in Massachusetts and Pennsylvania voted overwhelmingly to support the new DHL National Master Agreement. During these first meetings scheduled to inform members of the highlights of the historic agreement, not one member in attendance voted to oppose the tentative agreement.
"Our principal officer told our membership how we felt," said John Murphy, chairman of the New England DHL negotiating committee, and Local 25 Vice-President and business agent. "This is the best contract we could have negotiated with DHL. I think it's a damn good contract for our members. When we got a motion to accept and adopt the contract there was no one against it."
Approximately 352 members of Local 25 and 250 members of Local 107 in Philadelphia attended meetings to learn about the tentative agreement.
"Coming into the meeting members had questions and some concerns. But when everything was explained and they got the real story, there was 100 percent support for the contract," said Bill Hamilton, President of Local 107 and Joint Council 53. "I think this is the best contract I've been associated with. Considering the wages, benefits and no-layoff guarantees, we've given the company the opportunity to grow and protected and strengthened our members" position."
"Without a doubt the overwhelming support from two of the largest DHL locals is strong sign," said Brad Slawson Sr., chair of the Teamsters national negotiating committee. "This shows that when members learn the details of this contract, they see its benefits. As additional meetings are held, we are confident that other members will also support this tentative agreement."
Unanimously endorsed 52-0 by local leaders who represent workers at DHL throughout the country on March 12, the tentative agreement is the first new national master agreement to be negotiated in more than 30 years. Members will be mailed voting ballots in the next few weeks.
Additional informational meetings are planned for DHL locals across the country. As more locals hold meetings, members will be updated regularly.
See more information about the tentative DHL National Master Agreement.
Two-Thirds of UPS Freight Workers Have Signed Cards to Become Teamsters
Latest Victories In Ohio, Pennsylvania Include 230 Drivers, Dockworkers
With victories in Ohio and Pennsylvania, two-thirds of UPS Freight workers have signed authorization cards to become Teamsters, announced Teamsters General President Jim Hoffa. The number of UPS Freight workers who are seeking to join the Teamsters is about 8,400 since January 16.
"This milestone is especially gratifying given the years of struggle many of these workers have endured to be able to join the Teamsters," Hoffa said. "We look forward to many more victories in the coming weeks."
"We are proud to have these workers join the Teamsters," said Ken Hall, Director of the Teamsters Package Division. "They have worked tirelessly and for so long to gain a strong voice in their workplaces. The Teamsters will in turn make certain they get the strong contract they deserve."
The latest victories came in Ohio and Pennsylvania when an overwhelming majority of 230 workers at those UPS Freight terminals signed cards. The workers are seeking to join Local 585 in Pittsburgh and Local 24 in Richfield, Ohio.
"I would like to thank my in-house Organizing Committee led by UPS Freight city driver Keith Van Nostran," said Travis Bornstein, President of Local 24. "These guys worked extremely hard. Their commitment to building the union and standing together for change is what makes this exciting."
"Becoming Teamsters is going to be tremendous for these workers," said Roy Marshall, Secretary-Treasurer of Local 585 and also President of Joint Council 40. "It's been a long effort for them to join the Teamsters and now they will finally benefit from that."
With victories in Ohio and Pennsylvania, two-thirds of UPS Freight workers have signed authorization cards to become Teamsters, announced Teamsters General President Jim Hoffa. The number of UPS Freight workers who are seeking to join the Teamsters is about 8,400 since January 16.
"This milestone is especially gratifying given the years of struggle many of these workers have endured to be able to join the Teamsters," Hoffa said. "We look forward to many more victories in the coming weeks."
"We are proud to have these workers join the Teamsters," said Ken Hall, Director of the Teamsters Package Division. "They have worked tirelessly and for so long to gain a strong voice in their workplaces. The Teamsters will in turn make certain they get the strong contract they deserve."
The latest victories came in Ohio and Pennsylvania when an overwhelming majority of 230 workers at those UPS Freight terminals signed cards. The workers are seeking to join Local 585 in Pittsburgh and Local 24 in Richfield, Ohio.
"I would like to thank my in-house Organizing Committee led by UPS Freight city driver Keith Van Nostran," said Travis Bornstein, President of Local 24. "These guys worked extremely hard. Their commitment to building the union and standing together for change is what makes this exciting."
"Becoming Teamsters is going to be tremendous for these workers," said Roy Marshall, Secretary-Treasurer of Local 585 and also President of Joint Council 40. "It's been a long effort for them to join the Teamsters and now they will finally benefit from that."
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