YRC Freight

While demand remains tempered, the LTL sector is navigating challenges and positioning itself for growth as economic conditions shift.

Shippers need to brace for stiff rate increases as more disciplined carriers benefit from tight capacity, lack of drivers, new market concentration and mounting COVID-related demands.

Yellow is making progress toward profitability. It still suffered an $18.7 million loss in the 2020 fourth quarter, but cut its annual losses nearly in half to $53.5 million, compared with a $104 million loss in 2019. That latter figure included $11.2 million loss on extinguishment of debt associated with a refinancing of the Company’s term loan agreement.

There are operational changes occurring at networks run by long-haul YRC Freight as well as regional subsidiaries New Penn (East), Holland (Central States) and Reddaway (West) and HNRY, its third-party logistics unit. The goal is to coordinate shipments better, and reduce transit times, Yellow CEO Darren Hawkins confirmed to LM.

Yellow’s finances have improved during the third quarter ended Sept. 30. Operating revenue was $1.183 billion and operating income was $19.4 million. In comparison, operating revenue in the third quarter of 2019 was $1.257 billion and operating income was $23.8 million, which included a $1 million net loss on property disposals.

YRC Worldwide (YRCW) said that its subsidiary, YRC Freight, the fourth largest less-than-truckload (LTL) carrier, has expanded its Regional Next-Day Service to the mid-South region and also into Waco, Texas. The company said that offering up more two-day lanes between the mid-South and Texas serves as the most recent example of YRC’s enterprise network optimization strategy.

YRC lost $37.1 million in the second quarter on revenue of $1.015 billion, compared with a $23.6 million loss on $1.273 billion in the year-ago second quarter. Operating loss was $4.6 million, which included a $6 million net gain on property disposals. By comparison, operating revenue in the second quarter of 2019 was $1.273 billion and operating income was $14.3 million, which included a $6.2 million net gain on property disposals.

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.

The U.S. government entered the $46 billion less-than-truckload (LTL) industry by effectively purchasing 30% of financially troubled LTL giant YRC Worldwide in exchange for a badly needed $700 million cash infusion.

YRCW officials said that as detailed in its most recent Form 10-K, as it progresses through its previously discussed enterprise transformation, “the company will be reporting its five brands, which were formerly reported as two segments, now as one company on a consolidated basis.”

YRC Freight Regional Next-Day Texas service will now include Fort Worth and Garland, with company officials noting that this service expansion marks the most recent step in the YRCW enterprise network optimization strategy.

YRC’s total revenue for last year fell 3.4% to $4.871 billion from $5.092 billion in 2018. YRC reported consolidated operating revenue for fourth quarter 2019 of $1.16 billion and consolidated operating income of $9.8 million. By comparison, in the fourth quarter 2018, YRC reported operating revenue of $1.247 billion and consolidated operating income of $55.1 million.

After earning $2.9 million in the 2018 third quarter, YRC sustained a $16 million net loss in the most recent quarter. The quarterly loss was exacerbated by an $11.2 million loss on extinguishment of debt associated with a refinancing of the term loan agreement, which resulted in a negative impact of $0.34 cents per share for the third quarter 2019.

YRC Freight said that it has introduced a new next-day service entitled YRC Freight Regional Next-Day Texas, that moves freight within Texas on a next-day basis.

Overland Park, Kan.-based national less-than-truckload (LTL) transportation services provider YRC Worldwide, parent of the fourth- and seventh-largest trucking entities in the LTL sector, released some operating metrics for the first two months of the second quarter.