Yellow has been operating with an albatross around their neck ever since the overly leveraged (and over priced/paid) purchases of Roadway and the USF companies. The heavy debt burden and high interest rate payments dig into their bottom line.
That was intentional. It was designed to extract all the value out of the companies to major shareholders, then allow them to give loans to the company remaining at high interest. Then they started leasing everything so YRCW controls the number s in Yellow by setting the rates they pay to lease property and equipment.
That sounds like a business plan
Correct, especially distressed companies. There is no hope for their survival and the parts are worth more than the whole.
Dollars to Zollars and you end up broke.and heavily in debt.
I was at a stop yesterday with a yellow driver & he refused a 14,000 one biller said the system couldn’t handle it....Management & sales dept. just doesn't understand the synergy of how to make money , like hauling cheap crap freight , when they don't have enough Driver's or trailers to move the little bit of good freig they still have !
Yellow has freight sitting on customers dock here for a couple of days before they get it picked up and are using a trucking company that's using sleeper trucks to pickup some city freight.
1 biller, volumes are money losers most of the time. 14, thousand pound skids, with 10 different destinations will beat that all to heck.
Very true BUT what shipper will let you cherry pick just the good stuff?
I do switches at various shippers daily with 53’ floored out, and 10-15 bills.
