sort and seg groceries? Do they still do that? I had enough seniority that I never had to have those loads...
ABF | A Brilliant Accounting Move (even If I Do Say So)
- Thread starter 6PakAbs
- Start date
Yes they do, but because of the virus most places won't let you in do you sit & wait until their done....
wow...glad I done retired...I bet there would be an issue on shortages or damages? Must be fun ! NOT ! I would imagine the dispatcher would get quite frustrated watching you on camera playing solitare , candy crush..checking out T/B or Facebook while they are unloading and you just have to wait? What else you gonna do? I guess you could download a safety video to watch? or maybe some kind of adult entertainment (just kidding)
Thank god for smart phone's....
it would be interesting to see some kind of "warning letter" from a video surv of having to wait! Man, I would like to see that..or as Joe Biden might say (not a political statement)--"Come On, Man" !
Last edited:
Red arrow freight LTL cardinal freight carriers (truck load) GI trucking LTL properties, equipment ,most was previously old refurbished ABF road units.All for the bargain price if 72 million bucks.I’am sure the fort figured it all out how to expand there southern foot print .
The most logical reason I would guess is try and retain a lot of their market share,and maybe certain terminals that ABF wanted. On the other hand, maybe the person who came up with the buyout idea, was the same genius who talked ABF into building that big terminal in Springfield, Il that was off I -55, in the middle of nowhere, and if memory serves me right, lasted less than 10 years?
The terminal I am speaking of in Springfield was back in the early 80’s.
woodennose
TB Lurker
- Credits
- 370
Carolina owned a lot of property. I was told that was the reason for Abf to buy Carolina.
They opened that terminal in the beginning of 85 and closed it after buying Carolina, May of 96. At the time it was one of the top ten employers of the Springfield area with over 300 road drivers, and 200+ dock workers. I used to love being a nobody in the middle of nowhere lol
A road guy I knew back then told me they were sending freight there north from St. Louis, and south from Chicago, then half of it was running right back past where it originated going to destination? WTF? Thanks for calling
I also questioned the wisdom of buying Worldway Corporation. The only profitable subsidiary of Worldway was Cardinal Freight which ABC later sold. A maintenance management person told me they decided to sell that off because the equipment was due for replacement. A profitable company sells better while it is still profitable. CFCC & Clipper both were bleeding. CFCC like others ABF bought had contracts that were not profitable but were bid low for cash flow. CFCC had such a contract to supply the Olympics in Atlanta. They thought being designated the official carrier for the Olympics would be a good PR move & might bring new customers as a result. ABF tried to get out of the costly contract but was not successful in doing so. Supplying the Olympics was a logistical nightmare. It is a challenge to move freight in Atlanta even when the city is in a 'normal' mode. The freight had to be delivered over night. ABF was successful & secured several logistical contracts for conventions etc. because of the service the company provided.
As for equipment CFCC had mostly old equipment except for the new Internationals that were being put in service at the time of the acquisition. ABF has sold a fleet of three year old Louisville Fords to CFCC years earlier & they were still in the fleet. The new Internationals were originally to be financed by GE Capital on a three year lease with a condition clause. At the end of three years the tractors would not meet the condition requirement & would require paint & interior work so ABF bought out the lease & sold the tractors, many went to Roadway.
GE Capital higher ups got cold feet & were afraid they would have to repossess the Internationals because of the red ink of CFCC so they sought other financial groups to take on some of the load. Some financial institutions financed fifty tractors some a few more. The cab books listed several owners. Repossessed fleet tractors are difficult to sell, GE & the other financial institutions would have suffered a great loss had it not been for ABF. The maintenance VP said the lease was not a bad lease except for the condition stipulation at the end of the three year lease.
GE Capital higher ups got cold feet & were afraid they would have to repossess the Internationals because of the red ink of CFCC so they sought other financial groups to take on some of the load. Some financial institutions financed fifty tractors some a few more. The cab books listed several owners. Repossessed fleet tractors are difficult to sell, GE & the other financial institutions would have suffered a great loss had it not been for ABF. The maintenance VP said the lease was not a bad lease except for the condition stipulation at the end of the three year lease.
Worldway executive's contracts were apparently underestimated because many exercised their option for a buyout. A management person admitted the millions they were required to pay for contract buyouts caught them somewhat by surprise & it really hurt profits.
As for the initial question as to why ABC bought Worldway, I think the company wanted more market share & growth which is necessary for a company to survive. Worldway did indeed own a lot of real estate & much of it was sold. The reason the Springfield Illinois terminal was sold was because of the South Chicago terminal that CFCC owned. The Springfield terminal was a profitable terminal. I am sure the local there didn't want to see the COO.
As for the initial question as to why ABC bought Worldway, I think the company wanted more market share & growth which is necessary for a company to survive. Worldway did indeed own a lot of real estate & much of it was sold. The reason the Springfield Illinois terminal was sold was because of the South Chicago terminal that CFCC owned. The Springfield terminal was a profitable terminal. I am sure the local there didn't want to see the COO.
https://www.joc.com/after-2-years-abf-has-little-show-merger-headache_19970710.html
My guess was they wanted to buy market share and compete with the big three at the time.
In 95 the majority of ltl's were still union.
Problem today is if they were to buy YRC what would they get?
Their market share would be divided up with most every other line.
Most YRC property has been sold and leased back.
That would return to the owners.
Their equipment is fairly dated. Not much to gain their.
A lot of their workforce is 50 and over.
Probably still good drivers, but for how long?
Better to use that capital to pay off any of their own debt expand their service, update existing facilities and equipment.