Yellow | Yrc’s $700 Million Lifeline Changes Ltl Landscape For Rival Carriers, Shippers

[Freightmaster1]

Trucking’s competitive dynamics changed mightily on July 1 with the U.S. government’s infusion of $700 million in a badly needed financial lifeline for ailing trucking giant YRC Worldwide. YRC companies control about 10% of the $46 billion less-than-truckload (LTL) market. Rival LTL carrier executives and YRC customers were stunned by what is the largest freight financial transportation assistance from the American government for a non-airline company.

https://www.scmr.com/article/yrcs_7...tl_landscape_for_rival_carriers_shippers/news


"YRC was able to obtain the $700 million in loans because it qualified under Division A, Title IV, Subtitle A of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The government said that Treasury’s determination was based on a certification by Defense Secretary Mike Esper that YRC is “critical to maintaining national security.”

Whether YRC is that critical in a surface transportation market that totals $700 billion is open to question. But rival carriers are crediting YRC officials with excellent government lobbying skills in being able to obtain the funding at favorably low interest rates."

 

[Freightmaster1]

Trucking’s competitive dynamics changed mightily on July 1 with the U.S. government’s infusion of $700 million in a badly needed financial lifeline for ailing trucking giant YRC Worldwide. YRC companies control about 10% of the $46 billion less-than-truckload (LTL) market. Rival LTL carrier executives and YRC customers were stunned by what is the largest freight financial transportation assistance from the American government for a non-airline company.

https://www.scmr.com/article/yrcs_7...tl_landscape_for_rival_carriers_shippers/news


"YRC was able to obtain the $700 million in loans because it qualified under Division A, Title IV, Subtitle A of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The government said that Treasury’s determination was based on a certification by Defense Secretary Mike Esper that YRC is “critical to maintaining national security.”

Whether YRC is that critical in a surface transportation market that totals $700 billion is open to question. But rival carriers are crediting YRC officials with excellent government lobbying skills in being able to obtain the funding at favorably low interest rates."

Quietly, some rival carriers had even begun gaming what the LTL landscape would look like without YRC. It’s the same tactical planning carriers did preceding the “what-if?” scenarios before the bankruptcy of $3 billion LTL giant Consolidated Freightways on Labor Day 2002. Although unseemly, competitors seemed ready to pounce on YRC’s carcass.

 

[Fake News]

Quietly, some rival carriers had even begun gaming what the LTL landscape would look like without YRC. It’s the same tactical planning carriers did preceding the “what-if?” scenarios before the bankruptcy of $3 billion LTL giant Consolidated Freightways on Labor Day 2002. Although unseemly, competitors seemed ready to pounce on YRC’s carcass.

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