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Yellow | YRCW To Cut $100M In Job Costs

Friend of the frog said:
Eveyone knows it costs more to deliver freight as opposed to picking freight up.
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Does this mean that when we are inter-lining other trucking company's freight, they are making out that way? How does that break down there, because if many companies are eager to jump into this LTL then WHY would they not run their own freight? Finally, or at least use non-union carriers since they hate unions...? I really am just asking here and am confused.
 
It is much more complicated that that. They key is to give them more freight than they give you. The northeast is a double whammy because you do not cover as many miles and the cost of doing business is so much higher than anywhere else in the US.


The USF companies were very unique. HMES had the most revenue, so it was very important to keep them up there as far as OR goes. When USF reported numbers to Wall St. it was very, very important that HMES had great numbers.

In the pricing world it was very difficult to get some pricing through the HMES system while HMES was able to get virtually whatever they needed to put the freight on their trucks.

With all that being said, HMES was a great company. They did things well. Its a shame to see it falling apart the way that it is.

HMES also had a great advantage being in the middle of the country. They did not have to line haul to any of the other USF companies. RSEL had to line haul to RDWY and BSTW and vica versa. DUGN had to do the same thing. Those line haul costs were murder. HMES bordered each and every partner, so it made life so much easier for them,

I really believed that eventually RDWY would be spun off and USF would concentrate only on regional business, while Yellow would only handle long haul,

Who knows ????
 
Oldgringo2,
Welcome to Truckingboards. I agree. To hell with the stock market......when the economy is good trailers are full and everybody's working.....not the case now.
 
stldude44 said:
Oldgringo2,
Welcome to Truckingboards. I agree. To hell with the stock market......when the economy is good trailers are full and everybody's working.....not the case now.
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stldude44 :1036316054:

You have one of two correct.
The case now is that the economy is not so good and trailers are not full. (for some and not for others).
But the stock market is a forward looking indicator. And the reason the S&P 500 is close to an all time high is that the market is expecting the economy to be much better 6 to 9 months out, because the Federal Reserve will continue cutting rates in order not to stall the economy.


:smilie_132:
 
River17 said:
stldude44 :1036316054:

And the reason the S&P 500 is close to an all time high is that the market is expecting the economy to be much better 6 to 9 months out, because the NMFA will be expired and the mexican pilot program increased from 100 companies to much more.


:smilie_132:
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Aren't you with Fedex? You still trying to get the union in there...? I think I remember you from another forum and you were working at Fedex and prounion too, correct?
 
Stan Smith said:
Aren't you with Fedex? You still trying to get the union in there...? I think I remember you from another forum and you were working at Fedex and prounion too, correct?
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I'm sure that you have River mixed up with someone else......River is very anti-Teamster.
 
stldude44 said:
I'm sure that you have River mixed up with someone else......River is very anti-Teamster.
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Hey brother, I was just being jovial there. :biglaugh:

I just thought it was funny he was pointing out things in your post in a Yellow thread. Hope he stays though and has a cup of coffee. At least we knew where he stands and how he REALLY feels, right? :hide:
 
Actually the transportation sector is one of the biggest indicators on Wall St. Not just trucking but the entire transportation segment is used to gauge the strength of our economy.

You have to realize that is someone is buying something, there are trucks moving it. From the most basic of raw materials in the infancy of development to the finished product to the store or even the home. It needs to get there......

We move America
 
Stan Smith said:
Hey brother, I was just being jovial there. :biglaugh:

I just thought it was funny he was pointing out things in your post in a Yellow thread. Hope he stays though and has a cup of coffee. At least we knew where he stands and how he REALLY feels, right? :hide:
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I wasn't sure if you really knew Riv.........we definitely know where he stands.
 
Friend of the frog said:
Actually the transportation sector is one of the biggest indicators on Wall St. Not just trucking but the entire transportation segment is used to gauge the strength of our economy.

You have to realize that is someone is buying something, there are trucks moving it. From the most basic of raw materials in the infancy of development to the finished product to the store or even the home. It needs to get there......

We move America
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I agree up to a point. I will admit that I don't know or care to know about the global economy. It used to be that if the stock market was way up so was the freight level.....sadly as we can see that's not the case anymore. I've been saying for a few months now that we're in a recession but I guess the Gov't has told the news outlets not to say it in fear of scaring the braindead who can't see it. I don't know or care who is to blame....I just know that freight is dead compared to what it should be at most places.....even truckload.
 
stldude44 said:
I agree up to a point. I will admit that I don't know or care to know about the global economy. It used to be that if the stock market was way up so was the freight level.....sadly as we can see that's not the case anymore. I've been saying for a few months now that we're in a recession but I guess the Gov't has told the news outlets not to say it in fear of scaring the braindead who can't see it. I don't know or care who is to blame....I just know that freight is dead compared to what it should be at most places.....even truckload.
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stldude44 :1036316054:

In case anybody is interested Bill Zollars will be guest hosting on the Squak Box Show, Tuesday morning from 0600 to 0900 Eastern time on CNBC.
For us in the left coast getting up at 3.00 am is out of the question, but I'm sure Zollars will try to explain how bad the economy is in the trucking business.

:smilie_132:
 
River,
Thanks but I don't bother listening to him....not that he's necessarily wrong but all I have to do is see who's working and who isn't. And in most of the Boards here freight is way off, Union or not.
 
stldude44 said:
River,
Thanks but I don't bother listening to him....not that he's necessarily wrong but all I have to do is see who's working and who isn't. And in most of the Boards here freight is way off, Union or not.
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stldude44 :1036316054:


You are 100% correct.
Even our freight is off like everybody else's.

:smilie_132:
 
River17 said:
stldude44 :1036316054:

You have one of two correct.
The case now is that the economy is not so good and trailers are not full. (for some and not for others).
But the stock market is a forward looking indicator. And the reason the S&P 500 is close to an all time high is that the market is expecting the economy to be much better 6 to 9 months out, because the Federal Reserve will continue cutting rates in order not to stall the economy.


:smilie_132:
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I think the Fed is worried about an already stalled economy..They are hoping to head off a full blown recession without causing high inflation.It is just like a friend of mine was trying to tell me "" our economy is so good it is absorbing the high cost of oil ""..To which I replied :hysterical: I really love it when common sense is thrown out in favor of a political hack..Freight is down all over, and that does not equate to a good economy..
 
It seems to me that it is set up now that the only way a person can manage to save and grow money is to invest it in themarket. With interest rates being what they are it really is'nt that profitable to simply put your money in a savings account or even in the bond market because the returns are so poor. So in order to make any respectable gains you have to put your money in the highly volatile stock market and hope you don't lose your shirt.
 
Manufacturing is only one factor for our economic growth. We still excel with information technology and medical fields. So our economy can still be strong even though our trucks may not be as full.

But to call this a booming economy is way off. It is soft at best, but we have not fallen into a recession just yet. I remember the late 80's when we where in the middle of the last recession and I was working for an electronics company and business was just terrible.

If you look into your local Best Buy, you will see tons of HDTV, I Phones and lap top computers still flying off the shelves.


Now when the bubble bursts with the sub prime mortgage fiasco in the 4th quarter and 1st quarter next year....its a whole different story
 
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