XPO | Selling truckload

Mr. Jacobs said XPO already is looking at changes in Con-way Freight’s LTL service as the company prepares to close on the deal this quarter. He said the company is considering adding a cheaper economy service to Con-way’s premium-priced distribution service.

The premium service makes up only about a third of the total LTL market and XPO wants to introduce technology that will allow Con-way to tap the larger economy portion of the market.

Sounds like he is going after OD.
 
Love how we're in the dark about everything an go onto fb to read article that truckload is being sold possibly!! Smh


It's from the Wall Street Journal and they quote Jacobs. But whatever. I am not sure anyone is surprised that a guy with fleets of O/O and independent contractors has no use for a truckload fleet of his own.
 
Con-Was sold truckload division before. They could never make their mind up whether they wanted a truck load division or not.I still wouldn't read to much into it yet. It could even be good news for the Ltl part of the business.
 
Mr. Jacobs said XPO already is looking at changes in Con-way Freight’s LTL service as the company prepares to close on the deal this quarter. He said the company is considering adding a cheaper economy service to Con-way’s premium-priced distribution service.

The premium service makes up only about a third of the total LTL market and XPO wants to introduce technology that will allow Con-way to tap the larger economy portion of the market.

Sounds like he is going after OD.
Conway already went down this road.... for a cheaper service.... if you remember right it was called Conway deferred.... and they got rid of that as not many used it.
 
Conway already went down this road.... for a cheaper service.... if you remember right it was called Conway deferred.... and they got rid of that as not many used it.

Well Con-way is dead, soon. Maybe his XPO customers would find more value in the economy service.
 
For a company that wants to drastically increase profits, hauling freight for less sounds counterintuitive doesnt it? Its hard enough to find the drivers to handle the premium freight. They'll have to make large investments in people, trucks, trailers forklifts, and even facilities to handle the extra volume for marginal paying freight? This mgmt seems to have good intentions, but I have doubts about their experience in the ltl market.
 
This is a different economy now and it may be profitable when they do things differently.Con-Was always had massive overhead cost. It's hard to make a profit paying so much, to so many(management)
 
I'm starting to realize there really will be massive change immediately.
I know most of us want nothing but the best for you guys, but in reality we have all been thru these things and it (almost) never ends well. I was amazed as a Yellow employee how fellow LTL drivers I saw daily would come up and say"I heard you all were broke", I heard YRC is going out of business. Nice people normally, but they just took stupid. Like things were not already bad enough. I always said that would have been like me knowing you had cancer and me walking up and asking "how long do you have to live". People across the board were terrible, but I finally looked up the financials on EVERY trucking company and whoever ask about YRC, I would inform them of their personal woes they needed to address. Don't be rude if you aren't perfect, "it will bite you".
 
For a company that wants to drastically increase profits, hauling freight for less sounds counterintuitive doesnt it? Its hard enough to find the drivers to handle the premium freight. They'll have to make large investments in people, trucks, trailers forklifts, and even facilities to handle the extra volume for marginal paying freight? This mgmt seems to have good intentions, but I have doubts about their experience in the ltl market.
Good point.
 
For a company that wants to drastically increase profits, hauling freight for less sounds counterintuitive doesnt it? Its hard enough to find the drivers to handle the premium freight. They'll have to make large investments in people, trucks, trailers forklifts, and even facilities to handle the extra volume for marginal paying freight? This mgmt seems to have good intentions, but I have doubts about their experience in the ltl market.
Hmm..... Maybe the city guys will get over-time now as well as more Line-Haul runs!!! Wait, that will make the numbers look bad (Except the bottom-line).
 
I know most of us want nothing but the best for you guys, but in reality we have all been thru these things and it (almost) never ends well. I was amazed as a Yellow employee how fellow LTL drivers I saw daily would come up and say"I heard you all were broke", I heard YRC is going out of business. Nice people normally, but they just took stupid. Like things were not already bad enough. I always said that would have been like me knowing you had cancer and me walking up and asking "how long do you have to live". People across the board were terrible, but I finally looked up the financials on EVERY trucking company and whoever ask about YRC, I would inform them of their personal woes they needed to address. Don't be rude if you aren't perfect, "it will bite you".

I appreciate your perspective, but find it totally wrong.

YRC should have gone under. Obama spent our money so it wouldn't and that is bull ::shit::. We at Con-way took cuts in pay and lost benefits. Where was our government money ? And we ain't done spending. The biggest pension of them all is busted. And you all are going to destroy the system and take even more tax payer money to fulfill 37% of YRC's broken promises.

Of course everyone was going to want to talk about the largest LTL in the business falling to pieces under it's own weight. It was effecting us all. The world doesn't revolve around just you. The whole rest of all of us do exist. We are real. Check it out.

And you guys prancing around all snooty and talking down to everyone that wasn't union all those years may have had something to do with folks finding pleasure in seeing you knocked down a peg.

As it applies to a cancer patient, apparently you have no experience. The first thing you ask is how long ? The next is, do you want to go somewhere ? Do something ? Can I bring something to you ? Life is precious. Most of us don't know when we are going to go. Could be any moment. These people have a time table. They know the when. And those last few days of freedom before the sickness squeezes the life out of them are amazing and wonderful. The kind that leave a lifetimes worth of memories.

I don't understand how you can see it fit to compare celebrating a life that is ending with a business or a job that has run it's course. A business exists to make money. When it is no longer profitable, it will stop making money. People don't come to work for free. We say that it died or that it is dead, it's because those are terms that hold a certain terminal quality. But it was never alive or living. And no one ever celebrated the doors closing. It just fades away. In this industry they will recycle those trailers and you will see them for years and years. The sun fading out everything but where those old stickers used to be.

Only person ever to be perfect was a man around 2000 years ago. None of us are him. So I guess we oughta be used to getting bitten by now. It's human nature to be fallible. When did it become rude to be human ? Maybe instead of shutting those guys out you should have talked to them. Most of them had probably already been through the same type of situation a time or two. But that would have required you to see them as a peer or an equal. And that's probably to big of an ask from a guy like you. Not that I know you at all. It's just my impression of you from this post of yours.

Anyway, thank you for sharing.
 
Maybe his XPO customers would find more value in the economy service.
Your point is one that I thought about also. A lot of XPO's freight comes from overseas, and it doesn't have nearly as tight of time constraints as the domestic freight would have because of the usual delays with foreign freight. So XPO's system might be perfect for the economy service. Faster than normal for foreign freight, but slower than domestic freight........and cheap. Quantity can be as good as quality when it comes to profitability ......if you do it right.
 
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