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ABF | Q1 2021...Record quarterly revenue that increased 18% over last year.

Triplex said:
When you're heavily in debt you can't easily invest in new equipment, new technology or make many other costly changes to improve operations. Not making excuses but that's the reality. The fact that they are still operating after so many years of doom and gloom says something.
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They got 700 million from the government to get new equipment and pay on the pension among other things and they're still losing money, how is that possible???
 
Triplex said:
If your expenses are more than your income it's very possible.
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clown grave GIF
 
Triplex said:
To be fair ABF isn't paying around $35 million per quarter in interest expense. Just saying. That's the albatross around the neck of Yellow, going back to Zollars.
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That along with some more, shoot from the hip, operational decisions made by the top Orange Guy in Overland Park.
 
BIG R GUY said:
What I claim is from what I have learned about the trucking industry in the last 40 years, talking to people and asking questions, as a driver.
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Big R, you missed a lot of fixed costs items in your 40 years in the trucking industry and those fixed costs are the reason steward is correct. 1st. ABF pays for the terminals (taxes, insurance, maintenance, loans, etc) if they have no road drivers and only city drivers, the cost is exactly the same. So no road drivers is unrealized revenue they are not making. 2. The company pays for mechanics, fuel, tires, mechanical inventory, etc, for city equipment so not having a road fleet costs more because they don't buy as much and loose the bulk purchasing discount. 3. (from a management position the most important) control of the company. If ABF had to depend on purchase transportation to deliver most of the goods they picked up from customers, then purchase transportation could dictate future costs and scheduling appointments.
 
Homesick said:
Big R, you missed a lot of fixed costs items in your 40 years in the trucking industry and those fixed costs are the reason steward is correct. 1st. ABF pays for the terminals (taxes, insurance, maintenance, loans, etc) if they have no road drivers and only city drivers, the cost is exactly the same. So no road drivers is unrealized revenue they are not making. 2. The company pays for mechanics, fuel, tires, mechanical inventory, etc, for city equipment so not having a road fleet costs more because they don't buy as much and loose the bulk purchasing discount. 3. (from a management position the most important) control of the company. If ABF had to depend on purchase transportation to deliver most of the goods they picked up from customers, then purchase transportation could dictate future costs and scheduling appointments.
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All I was doing is comparing the cost of a company driver, verses PTS. No offense intended H, but I stand with my post. Thanks.
 
Steward of the Rock said:
However, it cost's more to use Purchase Transportation than using our own drivers. That is because the cost the truck load carrier charges ABF is more than the cost of using our own drivers. Just because the Truckload Carrier pays their drivers sub-standard wages and benefits does not mean they don't charge ABF an arm and a leg for their services.
Think of it as an Employee Agency. An Employee Agency may only pay their employees $10 an hour to work for an employer, but the fee they charge the employer is more around the $30 to $35 an hour range or even more in some cases.
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Things have changed drastically since the old days.
In the 50s and early 60s, produce haulers trip leased to Ryder for 2 or 3 hundred dollars just to get back to Fla for their good-paying loads.
They were happy to just get fuel expense money.
 
BIG R GUY said:
All I was doing is comparing the cost of a company driver, verses PTS. No offense intended H, but I stand with my post. Thanks.
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Sorry if I made my post sound offended. I didn't mean to and I took no offense to your post. I was only pointing out a few things you missed. I have about 35 years in trucking myself. I also have a Masters degree in Supply Chain Management. And before anyone starts the whole "why are you driving truck" or "your lying", I really enjoyed driving/traveling when I was younger! And if you really think I'm lying, Steward knows who I am and can verify with some of the Atlanta drivers that I earned the degree while working at ABF.......The point I was trying to make with your and Stewards posts is that there is more involved than just drivers wages and what ABF pays to private carriers..... If I offend anyone let me know and I will keep my nose and opinion out of others conversations.
 
Homesick said:
Sorry if I made my post sound offended. I didn't mean to and I took no offense to your post. I was only pointing out a few things you missed. I have about 35 years in trucking myself. I also have a Masters degree in Supply Chain Management. And before anyone starts the whole "why are you driving truck" or "your lying", I really enjoyed driving/traveling when I was younger! And if you really think I'm lying, Steward knows who I am and can verify with some of the Atlanta drivers that I earned the degree while working at ABF.......The point I was trying to make with your and Stewards posts is that there is more involved than just drivers wages and what ABF pays to private carriers..... If I offend anyone let me know and I will keep my nose and opinion out of others conversations.
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Homesick, you know I've got your back and I think you should post more. You are a Teamster and a fellow ABFer, so please stick your nose and your opinion into any post that I make on Trucking Boards. Even if you might disagree with me from time to time, I still value your opinion brother.
 
Homesick said:
Sorry if I made my post sound offended. I didn't mean to and I took no offense to your post. I was only pointing out a few things you missed. I have about 35 years in trucking myself. I also have a Masters degree in Supply Chain Management. And before anyone starts the whole "why are you driving truck" or "your lying", I really enjoyed driving/traveling when I was younger! And if you really think I'm lying, Steward knows who I am and can verify with some of the Atlanta drivers that I earned the degree while working at ABF.......The point I was trying to make with your and Stewards posts is that there is more involved than just drivers wages and what ABF pays to private carriers..... If I offend anyone let me know and I will keep my nose and opinion out of others conversations.
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I believe you about the Supply Chain Management, I have read your posts for a long time and you seem honest to me....as far as not posting because you offend someone, I would hope you would never quit posting for that reason.... We need all the well thought out and intelligent posters that we can get on these boards.....and this is a public forum so you aren't putting your nose in anyone's conversations, you are providing intelligent dialogue..... Keep up the good posts and stay safe out there brother...
 
Homesick said:
Sorry if I made my post sound offended. I didn't mean to and I took no offense to your post. I was only pointing out a few things you missed. I have about 35 years in trucking myself. I also have a Masters degree in Supply Chain Management. And before anyone starts the whole "why are you driving truck" or "your lying", I really enjoyed driving/traveling when I was younger! And if you really think I'm lying, Steward knows who I am and can verify with some of the Atlanta drivers that I earned the degree while working at ABF.......The point I was trying to make with your and Stewards posts is that there is more involved than just drivers wages and what ABF pays to private carriers..... If I offend anyone let me know and I will keep my nose and opinion out of others conversations.
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No hard feelings. Everyone is entitled to their opinion. That’s what makes this site great. Congrats on your degree, and thanks for stopping by.
 
Thanks all. What i have been wondering is with ARCB recent earnings call regarding this great first quarter, their guidance about the good upcoming second quarter, and the declaration that ABF is hiring drivers and dock workers. What will this do to retain employees who are considering retirement (with the pension now guaranteed for 30 years) and how will it affect the contract negotiations that will start in less than 2 years?

I know a lot of us are only a few years from being able to draw Social Security, so will you postpone retirement if ABF gives significant raises in this next contract? What, if anything, would keep you employed at ABF after retirement age? And for those who have not listened to the earnings call the prepared statement at the beginning of the call said a lot about our earnings potential for this next contract.
 
Homesick said:
Thanks all. What i have been wondering is with ARCB recent earnings call regarding this great first quarter, their guidance about the good upcoming second quarter, and the declaration that ABF is hiring drivers and dock workers. What will this do to retain employees who are considering retirement (with the pension now guaranteed for 30 years) and how will it affect the contract negotiations that will start in less than 2 years?

I know a lot of us are only a few years from being able to draw Social Security, so will you postpone retirement if ABF gives significant raises in this next contract? What, if anything, would keep you employed at ABF after retirement age? And for those who have not listened to the earnings call the prepared statement at the beginning of the call said a lot about our earnings potential for this next contract.
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Homesick, I truly feel that barring some unforeseen setback, that this next contract is going to be one that favors us for a change. This is just my thinking, but I feel that now that the pension fund has been secured for the next 30 years, that it will free up some money to use on improvements to other parts of our next contract. The reason for this is the fact that of the $342.00 currently contributed weekly for our pension per our contract (Central States), roughly $150.00 of it was being used to fund the pension obligations of the retirees from employers that no longer pay in to the pension fund. My thinking is that ABF will only have to pay in to the pension fund their portion they are obligated to for ABF employees only (just under $200.00 weekly). If my thinking is correct, $150.00 per employee weekly can make a lot of positive changes to the pay and benefits. And like you stated, a large portion of ABF's workforce is getting close to retirement age. That is also an advantage for us as ABF will want to retain as many of their experienced employees as they can. But like I said, that is just my thinking. But, I truly feel good about our 2023 contract.
 
Steward of the Rock said:
Homesick, I truly feel that barring some unforeseen setback, that this next contract is going to be one that favors us for a change. This is just my thinking, but I feel that now that the pension fund has been secured for the next 30 years, that it will free up some money to use on improvements to other parts of our next contract. The reason for this is the fact that of the $342.00 currently contributed weekly for our pension per our contract (Central States), roughly $150.00 of it was being used to fund the pension obligations of the retirees from employers that no longer pay in to the pension fund. My thinking is that ABF will only have to pay in to the pension fund their portion they are obligated to for ABF employees only (just under $200.00 weekly). If my thinking is correct, $150.00 per employee weekly can make a lot of positive changes to the pay and benefits. And like you stated, a large portion of ABF's workforce is getting close to retirement age. That is also an advantage for us as ABF will want to retain as many of their experienced employees as they can. But like I said, that is just my thinking. But, I truly feel good about our 2023 contract.
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And the profits ARCB and ABF have been making for the last 3 years. I also feel good about our prospect for the next contract. My personal dilemma is that is when I planned on retiring. So I would very much like to know what others plan to do if we do get a favorable employee contract?
 
Homesick said:
And the profits ARCB and ABF have been making for the last 3 years. I also feel good about our prospect for the next contract. My personal dilemma is that is when I planned on retiring. So I would very much like to know what others plan to do if we do get a favorable employee contract?
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I also plan on retiring during the 2023 contract. But if the money and benefits are good enough, I may decide to wait until the end of it.
 
That is exactly what I'm planning. This next contract should be easy for the Teamster to negotiate, with ABF current profit margins, pressure to find employees and reduced pension payments. On the other hand, if we don't get significant raises in this next contract I may retire earlier, maybe as soon as the vote is completed.
 
Steward of the Rock said:
Homesick, I truly feel that barring some unforeseen setback, that this next contract is going to be one that favors us for a change. This is just my thinking, but I feel that now that the pension fund has been secured for the next 30 years, that it will free up some money to use on improvements to other parts of our next contract. The reason for this is the fact that of the $342.00 currently contributed weekly for our pension per our contract (Central States), roughly $150.00 of it was being used to fund the pension obligations of the retirees from employers that no longer pay in to the pension fund. My thinking is that ABF will only have to pay in to the pension fund their portion they are obligated to for ABF employees only (just under $200.00 weekly). If my thinking is correct, $150.00 per employee weekly can make a lot of positive changes to the pay and benefits. And like you stated, a large portion of ABF's workforce is getting close to retirement age. That is also an advantage for us as ABF will want to retain as many of their experienced employees as they can. But like I said, that is just my thinking. But, I truly feel good about our 2023 contract.
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They have to do something for the people who helped abf get where their at, not everything geared towards the new hires....Everything is in our favor and 5 years is a long time to get the crumbs they threw at us last time, the union better do a better job then last time....
 
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