ABF Freight System’s Latest Change of Operations
Posted on : 30-04-2009 | By : Truckdriversnews | In : truck driver Industry
ABF Freight System is planning to close Teamsters’ road board operations in six locales. It says it is doing this because of declining freight volumes and to consolidate operations. The proposal means a loss of 127 Teamsters jobs.
Arkansas Best Corp.’s largest unit, ABF Freight System, is requesting a change of operations from the Teamsters union that will mean a loss of 127 jobs through consolidation at six terminals. The move is a reaction to declining freight volumes at the company.
The proposed change of operations is expected to be approved by the union at a meeting in Las Vegas on May 13. That much is known. What isn’t known is what is going on behind the scenes in the executive suites at ABF and, perhaps, at YRC Worldwide, the nation’s largest LTL carrier.
With analysts clamoring that there could be as much as 10 to 15 percent overcapacity in the LTL industry, some moves have to be made. ABF’s first-quarter operating results were dismal–the parent company lost $18.2 million in the first quarter compared with Ű.2 million profit in the year-ago first quarter as truckers cope with lingering effects of the recession.
What is startling about ABF’s results was the whopping 23.3 percent decline in tonnage. That caused ABF’s operating ratio to balloon to a whopping 108.3 in the firs
t quarter, compared with a 97.3 OR in the year-ago first quarter.
Clearly, this latest nominal change of operations is not going to turn around those dismal results.
So, what would?
There are rampant rumors within the trucking industr
y that ABF may be preparing a bid for YRC’s troubled regional freight unit, the former USF Corp. companies.
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It’s amazing how everybody knows NOTHING, but can continue to think up rumers. By the way when is UPS buy us out? Or when is DHL taking over YRC. You see rumers are real easy to start, usually the truth is a lot harder to find. Teamster local 222
Thanks for the comment, I guess we will all just have to wait and see..