national linehaul will be gone and absorbed by harrison, some freight terminals will close and most national terms will close, all will be done in three months after the announcement.
not likely, they still have high hopes of YRC going under. no way they are going to limit capacity now to just freight terminals
Yea that's what I mean right there. With the earnings outlook positive and the 100% equipment expense write off for 2011, I just don't see any kind of scale back being logical. It all points towards growth in the next year.
Here is my take on the matter...which means absolutely nothing!
Freight and National will remain separate entities internally.
There may some merging in areas where there is not enough volume to justify separate facilities. If that happens then the two OpCos will perhaps merge into the same facility and may haul each others freight...based upon whatever is the most profitable option.
The larger markets...IE. Chicago...Atlanta...Dallas...just to name a few will most likely remain visibly separate companies...as they should.
But in smaller markets the idea of having two separate and distinct facilities is overkill...as they could be merged into one.
This will be invisible to the customer and as far as they know the two OpCos will be two separate and distinct entities. The main difference will be on the internal side...as two OpCos under one roof..
Both Freight and National have their respective customers and markets...and they each target specific services offered to the customers.
That being said there is no reason to believe that FedEx is going to abandon a specific market. There is a market for the National service...and it will continue to be so.
In the smaller areas/markets separate facilities for the most part makes no sense...and may be combined...but kept separate in their operations.
Also take into consideration the following...a 100% write off for capital expenditure purchases is going to cause a great many companies to make purchases they otherwise would put off and will generate additional business outside and inside...unfortunately the YRC question continues...if...when...or what???...who knows???...but every carrier must be prepared for whatever happens or doesn't happen.
The volume remains and requires a specific level of capacity to handle it...there isn't any real threat to our jobs...maybe some inconvenience...but everyone will still here after the dust settles.
Just my take...which means absolutely squat!
Rat