YRC Freight | Yellow Corporation (NASDAQ:YELL) Q4 2022 Earnings Call Transcript


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Jeff Kauffman: Thank you very much. Hello, everybody. I want to follow up a little bit on Scott’s question. Down 25% tonnage, that’s not a little number. And it was a lot bigger than the rest of the industry. And I know there’s some strategic review and the focus on yield. But can you talk about not all tonnage is the same what kind of tonnage is falling away more in this number? And there’s been some debate as to whether what we’re seeing is simply a very large inventory correction, or is there something a little more nefarious going on, beneath the hood, and you did allude, in your comments to a bit of a slowing environment that you saw, particularly in the manufacturing side? So can you kind of address A, the bigger picture, what you think is really happening?

It was at happening is 80% of what we’re seeing just a timing issue on inventory that will come back, or and then kind of talk about the tonnage that you’re down 25. Is there a difference in the tonnage that’s down more than the others and when tonnage starts to come back how is that mix going to change?

Darren Hawkins: Good afternoon, Jeff, this is Darren and I’ll start with the part of your question about how I see things. I’m bullish on America, and I’m bullish on LTL. I think there’s incredible opportunity for national carriers that will have capacity available. As we see, in the coming months, the supply chain really starting in America again. So that is incredible opportunity and the moat around these national LTL carriers, I still see it as strong. In the meantime, with the tonnage that we no longer move through our networks, we’re certainly adjusting our costs to match the tonnage that we are moving. The waterline we’re currently at is okay with me with the very large phase two implementation coming up. I think that is an ideal time to make that transformation in the eastern part of the United States.