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ABF | YRC admits bankruptcy near; ABF stands to benefit

Jeff

Jeff

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Without more concessions from lenders and labor — and the Teamsters have already agreed to more than $350 million in labor cuts through 2013 — YRC admits that bankruptcy is the next step. Making the point even finer, the company outlined several outcomes of a bankruptcy filing. Those included:
• Our customers would likely cease or substantially reduce their use of our services to avoid the possibility of stranded freight in our network in the event we cease to operate or substantially reduce our operations;
YRC admits bankruptcy near; ABF stands to benefit | The City Wire
 
ABF might benefit in the short term but I think looking at the long term future of organized trucking YRC tanking is not a good thing. I want to see ABF turn things around but I don't want it to be from YRC failing.
 
Agreed Shooter, I am on LOA and don't want to see them fail. I think the pension obligations would crush any profits the sneaky ceo's have, unless the sneaky ceo has a trump card up his sleeve!
 
Jeff said:
Without more concessions from lenders and labor — and the Teamsters have already agreed to more than $350 million in labor cuts through 2013 — YRC admits that bankruptcy is the next step. Making the point even finer, the company outlined several outcomes of a bankruptcy filing. Those included:
• Our customers would likely cease or substantially reduce their use of our services to avoid the possibility of stranded freight in our network in the event we cease to operate or substantially reduce our operations;
YRC admits bankruptcy near; ABF stands to benefit | The City Wire
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Kind of a biased article out of Fort Smith Arkansas.
 
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mud said:
Kind of a biased article out of Fort Smith Arkansas.
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True this is their home town paper.Since you work for yrc maybe you can answer this ? I noticed a lot more yrc sets in the past couple of weeks & the bill count has increased. But after hearing the shipper & the yrc driver talking i dont think they are making much revenue off this account im talking about seeing the shipper said the rates were "dirt cheap". This account is a big vitamin distrabution warehouse & the freight is bid daily. Yrc is getting 2 or 3 more vans a day more for the last few weeks I thought the consession money was to pay down debt not to give it back to the shipper?
 
go40 said:
true this is their home town paper.since you work for yrc maybe you can answer this ? I noticed a lot more yrc sets in the past couple of weeks & the bill count has increased. But after hearing the shipper & the yrc driver talking i dont think they are making much revenue off this account im talking about seeing the shipper said the rates were "dirt cheap". This account is a big vitamin distrabution warehouse & the freight is bid daily. Yrc is getting 2 or 3 more vans a day more for the last few weeks i thought the consession money was to pay down debt not to give it back to the shipper?
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nottttttttttt.
 
YRC is pulling the freight they are pulling for one reason and one reason only, Price. They are working on the plan that includes lowering the price to whatever you have to to get the freight. Now if ABF can't pull that freight and make money on it what makes anyone think YRC can pull it for less and make money on it? They were supposed to use their concessions to lighten their financial burden but went and used it to lower rates. Counterproductive I would say. And this recipe for disaster is killing all of us.
 
ABFer said:
YRC is pulling the freight they are pulling for one reason and one reason only, Price. They are working on the plan that includes lowering the price to whatever you have to to get the freight. Now if ABF can't pull that freight and make money on it what makes anyone think YRC can pull it for less and make money on it? They were supposed to use their concessions to lighten their financial burden but went and used it to lower rates. Counterproductive I would say. And this recipe for disaster is killing all of us.
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I couldent agree more & our union is going along with it. Its all about the dues....
 
ABFer said:
YRC is pulling the freight they are pulling for one reason and one reason only, Price. They are working on the plan that includes lowering the price to whatever you have to to get the freight. Now if ABF can't pull that freight and make money on it what makes anyone think YRC can pull it for less and make money on it? They were supposed to use their concessions to lighten their financial burden but went and used it to lower rates. Counterproductive I would say. And this recipe for disaster is killing all of us.
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How do you know what price YRC, ABF or anyone else is hauling freight at? Just a simple question. Not bashing anyone. I work at YRC and still don't know what discount we give customers. I hate all the givebacks we gave but, it is working. We did turn a profit lasr quarter. 54 million dollars! Nothing compared to what we have lost in the last 2 years. But it is a profit. No other large carrier made a profit last quarter. As far as bankruptcy......since we are a public company, the default on the interest on the pension payment has to be reported. It is the law. What nobody reported was that there was already an agreement with the parties to miss the payment. So the only thing reported was what the public heard. So, YRC is not going in and under bidding anyone so we can't make money. I can name 2 companies that do this to try to put YRC out of business but so far it has back fired cause they have been losing money.
 
On your first question I speak with customers and salesmen and use a little of my own judgment to sort through it all. If you do have a different reason to use YRC over ABF I would like to know about it. The fact is that price drives almost everything today. I think we all know that. As for discounts I have heard from a credible source of one shipper receiving an 89% discount just to keep the freight. No way they are making money on an account with that discount.

On the default on having an agreement in place-this puts YRC in jeopardy-their creditors now have the right to force a bankruptcy proceeding. Whether not they will is another thing. That is news, factual news, not sensationalizing.

On the two other companies that have low ball rates out there, I can think of three, one of them is even union.
 
chris said:
How do you know what price YRC, ABF or anyone else is hauling freight at? Just a simple question. Not bashing anyone. I work at YRC and still don't know what discount we give customers. I hate all the givebacks we gave but, it is working. We did turn a profit lasr quarter. 54 million dollars! Nothing compared to what we have lost in the last 2 years. But it is a profit. No other large carrier made a profit last quarter. As far as bankruptcy......since we are a public company, the default on the interest on the pension payment has to be reported. It is the law. What nobody reported was that there was already an agreement with the parties to miss the payment. So the only thing reported was what the public heard. So, YRC is not going in and under bidding anyone so we can't make money. I can name 2 companies that do this to try to put YRC out of business but so far it has back fired cause they have been losing money.
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yrc had a 1 time tax break thats why they made money. It was a 30 million loss without that.
 
My fathers company ship with ever offers the lowest rate of the day. It could be con way then USf the next. Just depends.
 
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