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2007 - The Year of UPS
12/11/2006
Satish Jindel
Next year will be a special year for UPS as Big Brown turns 100 on Aug. 28. However, it is the other events that could occur in 2007 that will make it an important year for the company and the transportation industry and thus provide a strong incentive for the UPS management and Teamsters leadership to cooperate in an unprecedented manner in the interest of the customers, investors, employees and management.
ABF might gain the most from Teamsters consent for its workers to transition to a new UPS LTL contract. This could help ABF get acquired and provide UPS Freight a separate long haul (ABF) and regional (Overnite) network like its two major LTL rivals. With its 92 operating ratio, ABF has achieved better margins than most unionized LTL carriers. With ABF, UPS's LTL business unit would have combined annual revenue of $3.5 billion, enhance its competitive position against the larger YRC and FedEx Freight in a $32 billion market and create three giants with significant leverage to make changes in the LTL industry.
Traffic World OnLine - Columns