the one thing no one talks about total bills number of doors we at my terminal do not have enough doors out grown our terninal no way we could put national freight in here we can barely get in the city to deliver never mind doing pickups there is not a terminal in this area that could handle merging us way to much freight between us maybe in some areas this could happen but i dont see this in a major city then there is the yrc issue have you kept a eye on this situation stock price going no where pension payment coming due no money for this stock will be d/ listed if not over 1.00 soon something will have to give soon until then fred will do nothing fred does 5 10 yrs plan not just for today he knows there in the future will be lots of growth in the freight industry.
First of all, there's no growth in the LTL biz...nor will there be in the future.
Look around...factories moved offshore to China and Mexico...the real growth is in intermodal and international shipments.
Don't believe me? Ask Warren Buffett he just bought a railroad.
Fred Smith is buying a bunch of Boeing triple 7's just for that very reason.
JB Hunt has been one of the most successful carriers because they've gotten away from truckload and diversified into intermodal.
In LTL, the only way you make more $$$$ is either the shippers you have ship more or you take business away from the other guy.
It's a non-growth industry that's been consolidating for many years into a few larger players.
True, some terminals are at capacity, but there's no reason why they can't build new, larger facilities and combine the city operations.
Look at the commercial real estate markets in most major cities...plenty of empty space around.
The savings would be huge...their administrative/operational overhead would be cut by 1/2...not to mention things like tax incentives, increased P&D route productivity, paying rent on 1 facility vs 2, etc.
Trust me, I've seen it happen when I used to work at RPS after FedEx bought us.