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YRCW announced that the company has been named a recipient of the 2010 CIO 100 award by CIO magazine. The 23rd annual award program recognizes organizations around the world that exemplify the highest level of operational and strategic excellence in information technology (IT).

YRC Worldwide was honored by CIO magazine for the company’s integration and systems migration of Yellow Transportation and Roadway Express into YRC. Combining the strengths of Yellow and Roadway through the integration of networks, services and capabilities required the largest technology migration in the history of the transportation and supply chain industry.

“Our team is dedicated to creating an exceptional customer experience. Accelerating our business leadership through technology leadership is an important part of delivering on our commitment to customers,” said Mike Naatz, president-Customer Care Division and chief customer officer-YRC Worldwide. “Receiving this honor again this year recognizes the outcome and significant value of successful business and IT collaboration at YRC Worldwide.”

The primary business goal of the project has resulted in increased operational effectiveness and margins; improvements to the industry value chain; globalization and supply chain efficiency.

“The IT team at YRC Worldwide managed to do what no one had done before: a complete and successful migration of all systems between two huge transportation providers. And it was accomplished in a very compressed amount of time,” added Naatz.

The comprehensive business integration included:

• New use of existing technology to minimize disruptions and ease the transition
• Migration of all systems, data, and processes, including custom applications
• Innovative use of team resources to prepare for the transition and deal with challenges that inevitably arose during the integration process
• Freight quote system

“This year’s CIO 100 awards draws well-deserved attention to companies that are not only innovating with IT but creating genuine business value as well,” said Maryfran Johnson, editor in chief of CIO magazine & Events. “These winning companies and their IT organizations are an inspiration to businesses everywhere.”

The 2010 CIO 100 awards will be presented at the Terranea Resort in Rancho Palos Verdes, Cal., on Aug. 24 at the conclusion of the 12th annual CIO 100 Symposium(R) and Awards Ceremony.

YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is one of the largest transportation and logistics service providers in the world and the holding company for a portfolio of brands including Yellow Transportation, YRC Reimer, YRC Glen Moore, New Penn, Holland and Reddaway. YRC Worldwide has the largest, most comprehensive network in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence.

Air freight forwarders provide a service to shippers and importers which originally involved receiving a consignment of freight from a shipper, arranging its routing, transportation handling and documentation to either the final receiver or to a foreign airport. The role of the forwarders has developed over the years with the largest forwarders describing themselves as logistics providers, like DB Schenker.

The next day air freight industry consists of a number of different commercial organizations who provide shippers with through freight services. These organizations, mainly within the private sector, operate in a highly competitive environment.

Airports act as landlords and infrastructure providers charging landing fees and stand rentals or parking fees to airlines (their main customers) and charging rent to service companies for passenger reception terminals, retail and catering outlets offices, cargo transit sheds, air craft maintenance work shops etc.

Airlines are the suppliers of air cargo capacity into and out of the US are either scheduled operators, charter operators, freighter operators or integrated carriers. Scheduled operators provide air cargo capacity principally in the belly holds of passenger or combo aircraft, though some also operate freight only capacity. Charter operators like BAX Global operating on holiday routes also offer freight capacity, which in line with their passenger business is seasonal. Freighter operators are the operators of freight only aircraft. Integrated carriers operate their own aircraft (and use belly hold capacity) to carry their own cargo, as part of a door-to-door express service for shippers and importers of goods.

YRC remain confident we will have a successful note exchange that can significantly reduce our debt and improve liquidity. And we continue to receive solid support from our stakeholders, including our lender group.

We also continue to receive questions whenever an analyst casts doubts on the YRCW debt-for-equity offer. The questions are to be expected: If you read or hear about a critical analyst report, you want to know what’s really happening.

Case in point: An analyst with R.W. Baird & Co. recently said it’s unlikely that YRCW will achieve a 95% agreement rate with bondholders by Dec. 8. While that analysis made for interesting headlines, the real story goes much deeper. For example, the report notes that if 95% of the bondholders don’t sign on, we still have other options, such as lowering the percentage requirement.

With these types of note exchange offers, changes–and the resulting deadline extensions–are typical. It’s also typical for note holders to wait until the deadline before taking official action. There may be other extensions announced before completion of this phase. In every event, however, we will bring you updates on Insight in a timely and transparent manner. It’s part of our Confidence Delivered(TM) promise to you.

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Logistics, New Penn, Holland, Reddaway and YRC Glen Moore. Building on the strength of its heritage brands, Yellow Transportation and Roadway, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally.

Our owner-employees are trained to deliver confidence with claim-free shipping based on proper use of equipment, close adherence to procedures, and a personal commitment to your complete satisfaction.

How you prepare your shipments for transit is also important. Depending on what you are shipping, here are tips to help avoid damage:

Outer packaging

• Match your outer packaging to the nature of the contents. Wood crates provide the best protection for breakable items or very heavy, dense items. Sturdy corrugated cardboard is appropriate for most other shipments. Thin cardboard and repurposed old boxes rarely provide the necessary protection.
• Match your outer packaging to the size of the contents. Too big, and contents can move around and break. Too small and your shipment will not be properly protected.
• Securely seal the outer packaging with reinforced tape to help keep contents intact.

Packing materials

• Use sufficient packing materials around and between items to keep them from shifting inside the outer packaging.
• Consider using an inner box, surrounded by cushioning materials–a good rule of thumb is three inches on each side–for added protection.
• Reinforce corners and edges to keep them from bending or tearing.
• Select packing materials based on the contents–corrugated fiberboard, molded plastic, shredded paper, bubble wrap and packing peanuts are good options.

Palletizing shipments

• Build a cube: align the vertical edges of multiple cartons and maintain a flat, level top surface.
• Ensure the pallet is in good condition and larger than the cargo sitting on it.
• Use shrink or stretch wrap to keep multiple items together. Depending on the thickness of the wrap multiple layers may be necessary.
• Secure shipments to pallets with bands, tie downs, ratchet straps or rope.

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Logistics, New Penn, Holland, Reddaway and YRC Glen Moore. Building on the strength of its heritage brands, Yellow Transportation and Roadway, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally.

When shipping freight, there are times when numbers do tell the story.  Holland leads the field with the most next-day service lanes in the region with 3,348 next-day lanes in and between these 21 states.

Our next-day service takes the kinks out of your supply chain. Orders placed on Monday morning can be shipped and delivered on Tuesday often before noon with standard service. Your customers will be delighted with how quickly products get to market.

Equally important is the next-day reliability you count on from Holland, a YRC company. We deliver over 97% on time against the most stringent next-day transit times in the region. The result? Production lines stay on schedule and retail inventory can be restocked–with confidence–based on demand.

What do supply chain decision-makers really need?

According to third-party and YRC research, the answer is constant, no matter what the economic environment:

• Effective collaboration
• Complete visibility
• Flexible solutions that optimize resources, and
• Consistently reliable execution.

Speaking to a regional meeting of the Institute for Supply Chain Management in Columbus, Ohio, Tim Haitz, vice president of field sales east for YRC, explained that the Yellow Shipping network and YRC solutions are designed with those areas in mind.

“The supply chain environment is increasingly complex and fragmented,” Haitz said, “and many of our customers are trying to do more with smaller staffs.”

Given that, Haitz said, it’s important to work with providers who have the expertise needed to handle complex logistics challenges, and the flexibility required for customized solutions.

“Everyone in transportation and logistics has had to look at new ways to build flexibility into their supply chains,” he said. “Bottom line, it comes down to simple reliability. For a world-class supply chain, you want simple-to-engage processes that perform reliably, with metrics in place to allow ongoing management.”

Looking forward, Haitz said the move toward green supply chains can help efficiencies and the environment, and he encouraged attendees to work with transportation partners willing and able to collaborate on sustainability measures.

Story provided by a US apparel manufacturer:

I thank Wendy for reaffirming my choice of Yellow Freight. It’s one thing when a transportation provider drops the ball; it’s how you react that defines you.

One recent morning, a shipment scheduled for a 7:30 a.m. delivery at a warehouse-style retail outlet was not in sight. That meant the store would not accept the shipment until the following day, and I would lose the day’s sales and have to pay for the day’s floor space.

I called Wendy at YRC as soon as I learned of the problem. Wendy located the shipment and learned it could be delivered around 9:30 a.m. Then she called the store manager. I’m not sure what she said, but she persuaded him to allow the merchandise to be delivered later that morning.

Taking no chances with the delivery, Wendy jumped in her car and drove to the store location, arriving at the same time as the driver. I was amazed. She called me from the store, offering to help unload the racks and get the merchandise set up, while apologizing and reaffirming that the situation would be addressed internally at YRC.

Wendy truly cares about my business and that makes a huge difference to me.

While all our YRC employees work hard to ensure shipments are delivered on time and damage-free, unfortunately errors occasionally occur. When that happens we work hard to make it right. That’s part of confidence delivered.

YRC Worldwide Inc. announced today that it has reached a tentative agreement with the International Brotherhood of Teamsters leadership to modify the terms of the current labor agreement for its employees covered by the National Master Freight Agreement. The proposed changes are designed to reduce the company’s cost structure and preserve operating capital.

Details surrounding the tentative agreement are expected to be available next week following further discussions with labor leadership. The modified agreement will be voted on by YRC Worldwide employees who are represented by the IBT.

Certain statements in this news release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (each a “forward-looking statement”). Forward-looking statements include those preceded by, followed by or include the word “would” or similar expressions. The company’s actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including (among others) whether the employees covered by the National Master Freight Agreement ratify the modification to that agreement, inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions, including (without limitation) those cost reduction opportunities arising from the combination of the sales, operations and networks of Yellow Transportation and Roadway, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation), the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that are from time to time included in the company’s reports filed with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2008.

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Logistics, New Penn, Holland, Reddaway and YRC Glen Moore. Building on the strength of its heritage brands, Yellow Freight and Roadway Trucking, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 49,000 people.

YRC Worldwide Inc. announced that it has earned a Kaizen Challenge Award for continuous improvement from Toyota North American Parts Organization for the 2nd consecutive year. Toyota NAPO announced the 2008 award winners during its annual logistics provider meeting.

Kaizen, which means continuous improvement in Japanese, is an integral component of the Toyota Production System. To encourage its suppliers to embrace the same standards, Toyota created the Kaizen Challenge Award. All preferred suppliers are considered for the award. The award recipients are the suppliers that most effectively used Kaizen principles in helping Toyota address its supply-chain challenges.

About 20 preferred suppliers participated in the 2008 Kaizen Challenge and YRC Worldwide was one of 3 award recipients in its class.

Over the last several years, YRC Worldwide has established a strong partnership with Toyota NAPO, and more than 130 YRC Worldwide employees have completed training in the TPS and Kaizen.

The 2008 Kaizen Challenge award recognizes YRC Worldwide for developing a plan to improve delivery efficiency for over-sized and heavy parts such as truck beds, truck frames, drive trains, transmissions and engines from parts distribution centers and vendors to Toyota dealers throughout the country.

Plan elements included nationwide implementation of a standard process for equipment placement and material handling and a customer service process to coordinate delivery service with dealers. As a result of this process, damage claims and injuries were virtually eliminated.

“YRC Worldwide has been an outstanding partner over an extended period and has made a strong commitment to learn our business and our processes for continuous improvement,” said Sylvia Duran, National Logistics Manager at Toyota NAPO. “For both companies there is no best . . . only better.”

“The employees of YRC Worldwide are gratified to receive this prestigious recognition from Toyota,” said Greg Reid, Executive Vice President and Chief Marketing Officer for YRC Worldwide. “Not only does it demonstrate our ability to deliver innovative, cost-effective solutions, it is a great vote of confidence from a valued client. We’re honored and dedicated to continue to exceed the expectations of Toyota in the future.”

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Logistics, New Penn, Holland, Reddaway and YRC Glen Moore. Building on the strength of its heritage brands, Yellow Freight and Roadway Express, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 49,000 people.

Damage-free reliability creates satisfied customer. We mainly ship outdoor kitchens, which in most customers’ eyes are stainless steel grills. Our products go to customers in Canada and the United States . . . East Coast and West Coast.

Before YRC, we were working with another LTL provider, and we had problems. Product wasn’t secured on the truck and when the customer received the order, it was damaged.

Our Roadway Express account rep at that time, came by one day when this happened. He asked that if he could ensure our product would get from my location to the destination safely, would I give him a shot? I said, “Make it happen and let’s do it.”

Our first Roadway shipment got there on time and in one piece. No complaints! That was three years ago. Since that time, Roadway and Yellow Freight are and now YRC has been simply reliable. Everything comes through as promised.

About five years ago, the president and owner of our organization wanted to attract more customers. We developed a hybrid water heater that we’ve been selling for about two years. Our water heater keeps the water hot no matter what time of day it is; you don’t waste water and money running cold water out of the lines. You can have two showers going at one time and your washing machine and dishwasher, and you’ll still have water pressure and hot water. It’s also highly efficient; it not only saves energy but it burns clean.

Now, more than ever, we’re placing our confidence in the heavyweight expertise of YRC. Customers want greener appliances, so our business is up . . . and our pallets are heavy . . . about 1,600 pounds apiece.

Before, we would ship 15 to 20 pallets per week. Now, even though the housing market is down, our sales are growing and we’re averaging between 24 and 40 pallets a week.

We’re happy. We have great products and YRC is making sure they arrive in good shape.

OVERLAND PARK, Kan., June 18 /PRNewswire-FirstCall/ — YRC Worldwide Inc. (Nasdaq: YRCW) today clarified that the amendment it finalized on June 17, 2009 to its revolving credit facility with its lenders has the same terms in regards to total liquidity and capacity under the facility that existed prior to yesterday’s amendment. The new amendment does give the company immediate access to the escrow funds of $73 million by means of revolver capacity that can be borrowed at any time without approval from the lenders so long as the company’s cash is below $150 million. The $150 million is a new maximum of cash and cash equivalents that was mutually agreed to by the company and the lender group and set well above the company’s average daily cash usage. The company’s total liquidity includes its cash balance in addition to the availability under its credit facilities, which in total was $242 million at May 31, 2009.

“Yesterday’s amendment reflects the continued support of our lender group as we further implement our strategic actions both operationally and financially,” said Tim Wicks, Executive Vice President and CFO of YRC Worldwide. “We now have immediate access to the escrow funds, which is a month before the original agreement, and there is not an immediate reduction to our capacity.”

The company did not pay any fees to the lender group associated with this amendment.

YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Logistics, New Penn, Holland, Reddaway and YRC Glen Moore. Building on the strength of its heritage brands, Yellow Transportation and Roadway, the enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide< employs approximately 49,000 people.

The first step in the model involves generating a set of paths connecting origin and destination pairs by each freight transport mode. Second, the model transforms the potential travel demand estimated by the activity and transport interface into actual trips at particular times of the day (peak, off-peak, 24 hours, etc.). Trips for each category are distributed to modes by means of a MNL model, in which the utility function is determined by the composite cost of travel by mode. Third, the model assigns trips by mode to the different paths connecting origins to destinations by that mode. Trips are simultaneously assigned to operators and to links of the network, also using an MNL modeling approach. The combination of the MNL modal split and assignment models is equivalent to the two-level hierarchical modal split model.

The goods and services shipments flows are estimated using the spatial distributions of activities and population, following the path from the production locations to the exchange locations and then to the consumption locations. A notable aspect is the absence of discounted shipping data in the model, as is the case in traditional four-step travel demand models.

Data concerning the availability of land, industrial land use patterns, and the rules and regulations governing the development of land uses in the future are critical inputs that are used by the economic and land use component of the model to generate socioeconomic forecasts. Some key issues with respect to land use data that are important to consider as inputs to the model include an understanding of industry location choice decisions as a function of freight carrier transportation system performance, as well as a better representation of the inter-dependencies between land use and economic activity. An example is how increased economic activity in one industry sector may fuel the development of land uses associated with other industry sectors and vice versa. This tendency can be the location of automobile parts and accessory firms near automobile assembly plants and is often called clustering of industries.
Freight trucking companies models for use in transportation network information is a key input for economic activity models in order to assign the freight flows by mode to each modal transportation network. The network is represented in terms of links and nodes that provide connectivity between zones. Following are some key network attributes to consider in the model: capacity, size and weight regulations, hazardous material regulations, road closures and road speed limits.

Socioeconomic data (such as zonal employment and industrial economic activity) are not directly supplied to the model, but created internally by applying an economic/land use model. Additionally, in order to estimate economic activity, the generation and distribution of freight flows may be forecast within the model component. The forecasts of freight rates flows, converted into vehicle flows on modal network, are then assigned to the transportation networks.

The resulting performance on the transportation system, converted into costs, are used as feedback to the economic/land use component, which then updates the socioeconomic forecasts based on the predicted transportation system performance. The model then reruns the freight forecasting process with the new socioeconomic forecasts to re-estimate modal freight trips on the transportation network. This iterative process continues until there is no further update in the socioeconomic forecasts generated by the economic/land use component of the model, from the predicted freight flows on the network and the resulting transportation system performance.

Since the performance of the freight transportation system, particularly on the highway network, is governed by its interaction with passenger vehicles, economic activity models are usually integrated with passenger travel demand forecasting models so that the predicted performance of the transportation system and the subsequent update of the socioeconomic forecasts are as accurate as possible. Next, freight quote data.

The key feature of economic activity models is the integrated modeling of the dynamic interactions between economic activity, land use, and truck freight rates. The feedback of model results to the economic/land use model accounts for any changes in economic activity and/or land use that would result from future variations in transportation system performance. These changes in economic activity and land-use patterns in turn impact the magnitude and distribution of ltl truck freight flows on the transportation network and associated transportation system performance. Due to the considerations of these dynamic interdependencies between transportation system performance, economic activity, and land use, economic activity models also offer capabilities to accurately model induced freight demand impacts of new transportation or industrial investments.

The interrelationships between economic activity and land use are important to understand, particularly in developing freight shipping company forecasts, since land use defines the spatial distribution of economic activity, and economic activity has a significant impact on the location and types of land uses in a region. For example, increased port economic activity may impact the development of new warehousing/distribution center land use and their location patterns. In addition, new land uses and development also can help economic activity in a region, which underscores the importance of integrating land use forecasts with predicting economic activity and associated shipping freight demand. For example, the development of a new intermodal terminal in a region can instigate the development of logistics parks and warehouse/distribution centers, resulting in increased economic activity and associated demand for freight transportation.

Discount freight shipping truck models follow a three-step process of trip generation, trip distribution, and traffic assignment. Trip generation estimates the number of trips either produced in each zone or attracted to each zone and is usually a function of socioeconomic characteristics of the zone like employment by industry, population, or number of households. Trip generation is accomplished using truck production and attraction equations whose coefficients are estimated based on local surveys or by using parameters borrowed from other sources such as the Freight Shipping Quotes Manual . Trip distribution determines the connection between trip origins and trip destinations. Trip distribution is generally accomplished using a gravity model similar to that used in a passenger model. In the gravity model, the number of trips that travel between one zone and another is a function of the number of trip attractions in the destination zone and is inversely proportional to a factor measuring the impedance between the two zones. The gravity model is usually related to the travel time between two zones, i.e., the longer it takes to get from one zone to another, the less attractive trips to that destination zone become. Parameters in the gravity model can be developed from local surveys or borrowed from other sources such as the QRFM. The route that trucks use to get from origin to destination is a function of network characteristics, taking into account traffic conditions on each route. Network assignment of the truck trips is usually based on a multiclass equilibrium highway assignment that includes passenger cars; in other words, the model looks for the shortest time path for all trips simultaneously. Freight truck models can take into account the size of trucks and their impact on congestion compared to automobiles (large trucks cause more congestion because they occupy more space than automobiles). In addition, the networks can be coded so that any prohibited routes are not available for truck trips.

Through proper management of your inbound freight, you can reduce your total purchase cost by 5% or more.  Integrating functions between the purchasing and transportation,  is essential to exploit the full savings in the  transportation environment.

As a general rule, the greater the volume purchased, the lower the cost per unit. The same holds true in the purchase of transportation services. The practice of consolidating your freight with just one or two freight carriers can give you higher freight volumes per carrier and therefore allowing you to receive a better shipping freight quote. Developing a better working relationship with your carriers can help identify opportunities which are beneficial to both parties.

For this model, the socioeconomic data available are stratified into the following 10 industry groups: 1) agriculture/farm/fishing, 2) mining, 3) construction, 4) manufacturing – products, 5) manufacturing – equipment, 6) transportation, 7) wholesale, 8) retail, 9) finance, and 10) education/government. The availability and use of multiple industry groups increases the accuracy for truck travel generation because each industry group can have a different freight shipping rate.

Trip distribution was performed using a standard gravity model. Model calibration was performed using a reasonableness check of the average truck trip lengths estimated by the model.

The truck model is designed to generate truck volumes based on average daily traffic. The truck model output reports truck volumes based on truck classes are medium-heavy duty and heavy-heavy duty for regulatory purposes.  A multi-class equilibrium assignment was performed and validated by comparing model truck volume outputs to observed truck counts collected.

Some of the issues in the San Joaquin Valley truck model that are being addressed in the ongoing model update include:

There were no calibration procedures adopted to validate the ITMS commodity flows to observed freight hipping companies truck counts.
Flows of nonmanufactured commodities (especially farm and mining products), flows between major city pairs (e.g., flows between the urbanized portions of Southern California and the San Francisco Bay Area), and flows disaggregated to the zip code level need more careful scrutiny and adjustment using a variety of other sources.

The secondary truck trip tables were developed using rates that were found to be too high and needed to be scaled back during calibration.

For this model, the socioeconomic data available are stratified into the following 10 industry groups: 1) agriculture/farm/fishing, 2) mining, 3) construction, 4) manufacturing – products, 5) manufacturing – equipment, 6) transportation, 7) wholesale, 8) retail, 9) finance, and 10) education/government. The availability and use of multiple industry groups increases the accuracy for truck travel generation because each industry group can have a different freight shipping rate.

Trip distribution was performed using a standard gravity model. Model calibration was performed using a reasonableness check of the average truck trip lengths estimated by the model.

The truck model is designed to generate truck volumes based on average daily traffic. The truck model output reports truck volumes based on truck classes are medium-heavy duty and heavy-heavy duty for regulatory purposes.  A multi-class equilibrium assignment was performed and validated by comparing model truck volume outputs to observed truck counts collected.

Some of the issues in the San Joaquin Valley truck model that are being addressed in the ongoing model update include:

There were no calibration procedures adopted to validate the ITMS commodity flows to observed shipping companies truck counts.
Flows of nonmanufactured commodities (especially farm and mining products), flows between major city pairs (e.g., flows between the urbanized portions of Southern California and the San Francisco Bay Area), and flows disaggregated to the zip code level need more careful scrutiny and adjustment using a variety of other sources.

The secondary truck trip tables were developed using rates that were found to be too high and needed to be scaled back during calibration.

The discounted freight shipping rates for the internal truck model were developed from two primary sources of existing truck models. The data was selected because it provided freight truck discounts rates based on national averages. The Vancouver rates were selected to provide stratifications of rates for more employment categories. The data was used to derive rates for light trucks, while both the aforementioned sources provided rates for medium and heavy trucks, although the data defines these categories as six or more tire trucks and combination trucks, respectively. These rates were originally developed using the two primary sources of data, but were adjusted during model calibration.

Freight truck models develop highway freight truck rates by assigning an OD table of freight truck flows to a highway network. The O?D truck table is produced by applying truck trip generation and distribution steps to existing and forecast employment and/or other variables of economic activity for analysis zones. This method involves estimating the O?D table directly using trip generation rates/equations and trip distribution models at the TAZ level. This is similar to the four-step passenger models. The mode choice step is eliminated since shipping freight truck trips are estimated directly without consideration of other possible modes for moving freight. The components required for this modeling technique include existing and forecast zonal employment data, methods to generate zonal freight productions and attractions by using freight truck trip generation rates, methods to generate truck OD flows by applying trip distribution procedures to truck productions and attractions, and methods to assign the OD freight truck flows to a highway network.

Freight truck models usually attempt to account for shipment of goods, including local delivery. Because these models are focused exclusively on the truck mode, they cannot analyze shifts between modes. Truck models are usually part of a comprehensive model that forecasts both passenger and freight movement and, consequently will often use a simultaneous assignment of truck trips with automobile trips.

The ability to assign the commodity vehicle tables to modal network will in large part depend on the quality of the modal networks and the ability to consider traffic by vehicles other than those shipping freight. The choice to use a commodity table in freight forecasting in lieu of trip generation and distribution typically is done because a more sophisticated model transportation model is not available. This quite often is accompanied by the lack of an auto highway model. Although a commodity table can be assigned directly to a highway network, but without the interaction of auto traffic, the response to congestion cannot be considered. For that reason, the use of commodity models is often accompanied by simple auto highway models. Auto trip tables were created through an Origin-Destination Matrix Estimation process using only observed traffic counts. Although this table does not allow the consideration of behavioral changes, its inclusion at least ensures that the combined impact of auto and truck congestion is considered. Georgia and Tennessee also approached the inclusion of nonfreight trucks in the freight forecasting process differently. Tennessee made the assumption that commodity trucks can be considered the same as large combination tractor trailers and assumes that observed single unit trucks could be considered to be the same as nonfreight trucks.

Shipping freight quote covered in Section 25

Methods to forecast freight demand involve the creation of flows of freight between zones, and trip tables, using trip generation and distribution steps. For urban models, trip tables (generally just for shipping companies trucks) are created by trip generation and distribution equations that are created from trip diaries or surveys of commercial vehicles or using the coefficients of others that have been developed from such surveys. Those statewide models that deal with commodity freight develop trip generation and distribution equations from surveys of commodity flows, such as the Commodity Flow Survey, the Freight Analysis Framework. Urban commercial vehicle surveys will always only be a statistical sample of all truck trips. However, even if commodity flow surveys are developed from statistical samples, they are generally expanded into complete flow tables, typically for an entire year. Since these commodity flow tables are themselves trip tables, if freight flow patterns are expected to be fairly stable, instead of using the commodity flows surveys as a means of developing trip generation and distribution equations, these commodity flow surveys themselves can be used as trip tables. This section discusses how commodity flow surveys can be used directly as trip tables in freight forecasting.

Although the organization of a commodity flow database might not look like a trip table to those who are familiar with travel demand models, its data fields easily can be reorganized into a trip table of freight flows. It contains as attributes origins and destinations, commodity type (purpose), and units of flow by mode. A sample frame of the database as used in the Tennessee Freight Model, where the records are identified by the origin, the destination, and the commodity (purpose). The flow for each of these records by mode is specified in annual tons.

The use of a commodity table in place of one developed through a trip-generation and trip-distribution process does have limitations. These forecasts are not easily modified in response to changes in employment forecast by industry or by specific units of geography. The freight flows will not change in response to changes in the transportation system that might result in new distribution patterns. The use of a fixed table for freight may represent a different paradigm than that used for passenger travel. The use of commodity tables directly for freight flows is often part of a less sophisticated model, where simplifications were for the passenger trip table. The direct use of commodity flow tables in transportation forecasts is typically done in state forecasting, since the internal truck movements that are of interest in urban travel forecasting are not represented in most commodity databases. The direct use of a commodity trip table may be considered for the external portion of the forecasting.

Discount freight is covered in section 15.

Site or facility planning is an essential component of a comprehensive freight shipping planning process. A large fraction of freight traffic flows in a region move to and from freight facilities like manufacturing plants, warehouse/distribution centers, or inter-modal transfer facilities. Consequently, development of a new facility or expansion of an existing facility can have a significant impact on the magnitude and spatial distribution of freight flows in a region.

Multi-modal access route planning is one of the most important elements in a site or facility planning process. This involves predicting mode-specific freight traffic demand generated by the facility and using these predictions for planning the development of multi-modal freight access routes to ensure efficient handling of demand by each access mode. Multi-modal access routes provide the critical link between the facility and the larger transportation network, and consequently, any bottlenecks on access routes can have significant impacts on facility operations for example, economic impacts associated with freight transportation delays.

The site or facility planning process can be subdivided into two broad steps thatinclude freight modeling and the planning applications step.  These steps are discussed in greater detail in the following sections, focusing specifically on planned sites or facilities. The planning approach for existing sites or facilities is relatively straightforward and involves collecting simple traffic counts and observing where and when these counts are taken, and using simple trend analysis or trip generation rates using existing counts to forecast freight flows on the network.

Freight trucking companies

Freight models in states that are geographically small and densely populated with adjoining urban areas, such as Connecticut and New Jersey, tend to take the form of urban truck models. Freight models in larger states, particularly those with larger rural areas and/or large percentages of pass-through traffic, such as Indiana, Florida, and Wisconsin, forecast freight in “four-step” commodity models, are a principal focus of this section. Still other states, such as Virginia, Tennessee, and Georgia, follow the general form of commodity model, but use acquired commodity freight tables in lieu of forecasting those tables in the trip generation and trip distribution.

State “four-step” commodity models are truly multimodal. The modes considered in these models typically include truck, rail, water, and air, even though the assignment step may only address trucks, and sometimes rail. As multimodal commodity models, the flow unit is common to all modes, and is typically tons.  These models tend to be calibrated from annual commodity flow tables and the forecasts in the first forecasting steps will be annual tons.

Freight carriers

Freight forecasting models, as all models, should have boundaries such that they internalize most of the trips that will be subject to forecasting. In the case of passenger modeling, these boundaries can be set at the jurisdictional boundaries of the state. Internal freight traffic within a state is typically no more than 25 percent of the flow total, and the flow to, from, and through the state due to national traffic comprise the majority of the freight flows. In order to properly forecast this traffic, the geographical area covered by state freight models typically is most of the continental United States, if not all of North America. The inclusion of modes that primarily travel distances of over 500 miles, such as rail, water, and air also suggests that the freight modal boundary should be much greater than just the state boundary. States that have developed “four-step” commodity freight models typically already have developed detailed travel-demand model zones and networks within the state boundary. These models and zone systems have been extended by inclusion of national highway and rail networks.

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Through proper management of your inbound freight, you can reduce your total purchase cost by 5% or more.  Integrating functions between the purchasing and transportation,  is essential to exploit the full savings in the  transportation environment.

As a general rule, the greater the volume purchased, the lower the cost per unit. The same holds true in the purchase of transportation services. The practice of consolidating your freight with just one or two freight carriers can give you higher freight volumes per carrier and therefore allowing you to receive a better discount rate. Developing a better working relationship with your carriers can help identify opportunities which are beneficial to both parties.

Outside of his professional duties at Reimer Express, which is a division of YRC, Gording has also served in director and executive roles, including president from 2006-08 for the Manitoba Trucking Association (MTA). He currently serves as past president. …

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YRC shipping quote

Perhaps the simplest and most direct method to forecast future freight demand is to factor existing freight demand. This section provides simple methods that can be used to forecast the changes in freight demand due to changes in the level of economic activity or other related factors. The procedure involves applying growth factors to baseline freight carrier traffic data or economic variables in order to project the future freight travel demands. The growth factor approach is classified into two types – the more commonly used method of forecasting future activity based on historical traffic trends, and the less commonly used method based on forecasts of economic activity. The first approach involves the direct application of a growth factor, calculated based upon historical traffic information, to the baseline traffic data. The second approach recognizes that demand for freight transportation is derived from underlying economic activities (e.g., employment, population, income, etc.). In this approach, forecasts of changes in economic variables are used to estimate the corresponding changes in freight traffic. A simple example is provided at the end of the section to illustrate and differentiate the two approaches.

Growth factors are commonly used by state DOTs, MPOs, and other planning agencies to establish rough estimates of statewide or regional growth for a variety of types of demand and are certainly applicable to establishing the freight traffic for the freight component of a transportation plan, program, or project design. At the local level, these methods might be used to project growth in freight traffic in a given corridor or the level of activity at an intermodal facility or port.  This section also briefly describes a more elaborate alternative approach for freight transportation demand forecasting using simple statistical techniques.

The use of growth factors is a simple, inexpensive way to forecast freight, whether based on historical trends or based on historical relationships to economic data, but this method assumes that all of the relationships that are part of that history will continue during the forecast period. It is not well suited for situations that involve dramatic new changes in activity, such as the introduction of a new freight facility offering freight or new developments in shipping or receiving freight. It is most suitable for analyzing incremental changes in freight activity.

Perhaps the simplest and most direct method to forecast future freight demand is to factor existing freight demand. This section provides simple methods that can be used to forecast the changes in freight demand due to changes in the level of economic activity or other related factors. The procedure involves applying growth factors to baseline freight traffic data or economic variables in order to project the future freight travel demands. The growth factor approach is classified into two types – the more commonly used method of forecasting future activity based on historical traffic trends, and the less commonly used method based on forecasts of economic activity. The first approach involves the direct application of a growth factor, calculated based upon historical traffic information, to the baseline traffic data. The second approach recognizes that demand for freight transportation is derived from underlying economic activities (e.g., employment, population, income, etc.). In this approach, forecasts of changes in economic variables are used to estimate the corresponding changes in freight traffic. A simple example is provided at the end of the section to illustrate and differentiate the two approaches.

Growth factors are commonly used by state DOTs, MPOs, and other planning agencies to establish rough estimates of statewide or regional growth for a variety of types of demand and are certainly applicable to establishing the freight traffic for the freight component of a transportation plan, program, or project design. At the local level, these methods might be used to project growth in freight traffic in a given corridor or the level of activity at an intermodal facility or port.  This section also briefly describes a more elaborate alternative approach for freight transportation demand forecasting using simple statistical techniques.

The use of growth factors is a simple, inexpensive way to forecast freight, whether based on historical trends or based on historical relationships to economic data, but this method assumes that all of the relationships that are part of that history will continue during the forecast period. It is not well suited for situations that involve dramatic new changes in activity, such as the introduction of a new freight facility offering freight or new developments in shipping freight. It is most suitable for analyzing incremental changes in freight activity.

Payloads or truck loads are limited by weight and volume considerations. The commodities carried by freight carriers have different densities and therefore, different payloads for the same volume. Because of handling and packaging needs, payloads also may differ by commodity. For example, large size trucks carry heavier loads even for the same commodity. If payloads are calculated for different freight truck classes, the commodity tonnage needs to be allocated to the different truck classes. Smaller trucks tend to be used more in shorter-haul service. To the extent that length of haul and truck size are correlated, length of haul (directly available from commodity flow data) can be used in calculating payload factors. Payload factors can be calculated for loaded trucks only (estimated truck volumes must then be adjusted to account for percent of empties) or they can average empty and loaded weights.

These methods are the most comprehensive as they examine the characteristics of each individual shipment and the available modes. The most common type of choice method is the discrete choice logit model. This formulation is very similar to the passenger mode choice modeling, but the variables and data sets used to estimate the parameters are very different. The logit discrete choice model shows the choices for individual shipments as a function of the utility that each mode provides to the shipper. Utility can be a function of any of the factors mentioned earlier in this section.

The logit model actually calculates the probability that each shipment will use a particular mode. Summing the probabilities across all of the shipments provides the overall mode share. Each modal alternative has a utility to the shipper that has a systematic component related to the factors we have described earlier and a random component that has to do with things like personal relationships. The coefficients in the utility function measure the relative importance of each factor in determining mode choice. The greater the utility that any alternative has, the higher the probability that this alternative will be selected.

Logit choice models are the most complete with respect to modeling all of the factors that affect mode choice. Thus, they can be applied to a wide range of policy and investment studies. However, they are complex to build and are very data intensive. Most of the data needed require the use of complex performance or simulation models. The truck surveys are helpful for estimating the choice parameters, but these surveys are expensive and time-consuming to conduct.

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One alternative to the use of growth factor methods for forecasting freight travel demand is regression analysis. While the historical growth or time-series methods discussed in Section 3.2 also involve regression of observations against time periods, regression analysis as it is discussed here involves identifying one or more independent variables (the explanatory variables) which are believed to influence or determine the value of the dependent variable (the variable to be explained), and then calculating a set of parameters which characterize the relationship between the independent and dependent variables. For freight planning purposes, the dependent variable normally would be some measure of freight activity and the independent variables usually would include one or more measures of economic activity (e.g., employment, population, income). For forecasting purposes, forecasts must be available for all independent variables. These forecasts may be obtained from exogenous sources or from other regression equations (provided that the system of equations is not circular), or they may be developed by the forecaster using other appropriate techniques.

For forecasting purposes, regressions normally use historic time-series data obtained for both the dependent and independent variables over the course of several time periods like years. Regression techniques are applied to the historic data to estimate a relationship between the independent variables and the dependent variable. This relationship is applied to forecasts of the independent variables for one or more future time periods to produce forecasts of the dependent variable for the corresponding time periods.

It should be recognized that the economic forecast described above, to some extent, has been developed by regression and calibration to observed data.  The use of regression of observed freight flows to economic data should be used with caution as an alternative to the economic forecast described above which also may consider many factors that cannot be considered in a simple regression.

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The growth factor methods presented above produce just a single forecast of freight demand. Planning decisions can then be made on the basis of this forecast. However, planners are cautioned that the forecast is likely not to be completely accurate either because some of the assumptions prove to be inaccurate, or because of deficiencies in the procedure itself. Because no forecast can be guaranteed to be perfectly accurate, effective planning requires that planning decisions be reasonably tolerant of inaccuracies in the forecast. The conventional approach to analyzing the effects of alternative futures is to subject a forecast to some form of sensitivity analysis.

The development of any forecast requires a number of assumptions to be made, either explicitly or implicitly. Some of the types of assumptions that may be incorporated into forecasts of demand for a transportation facility relate to:

• Economic growth – both nationally and locally;
• Growth in the economic sectors that generate significant volumes of freight handled by the facility;
• Transport requirements of these sectors (that may be affected by increased imports or exports or by changes in production processes);
• Modal choice (which may be affected by changing transport requirements or changing cost and service characteristics of competing modes);
• Facility usage per unit of freight volume (that may be affected by changes in shipment size or container size);
• The availability and competitiveness of alternative facilities;
• Value per ton of output; and
• Output per employee (if employment is used as an indicator variable).

Sensitivity analysis consists of varying one or more of these assumptions in order to produce alternative forecasts. The most common alternative assumptions to be considered are those related to economic growth; and, indeed, economic forecasters (including BLS) frequently provide high and low forecasts of growth in addition to a medium (or most likely) forecast. These alternative forecasts of economic growth can be used to generate alternative forecasts of transport demand, and additional alternative forecasts of exogenous variables (e.g., trade) can be used to produce an even larger set of forecasts of transport demand (e.g., high growth, high trade; high growth, low trade; etc.). However, simply varying these exogenous forecasts generally will not produce a set of transport-demand forecasts that represents the full range of demand that might exist in future years of interest. To produce a better understanding of the range of demand that might exist in the future, a more thorough sensitivity analysis should be conducted.

One approach to conducting a thorough sensitivity analysis consists of reviewing each of the assumptions explicit or implicit in the analysis and, for each assumption, generating a pair of reasonably likely alternative assumptions, one that would increase the forecast of demand and one that would decrease it. A high forecast of demand can then be generated by using all the alternative assumptions that would tend to increase the forecast (or at least all those that are logically compatible with each other); and a low forecast can be generated by using all the alternative assumptions that would tend to decrease the forecast. These high and low forecasts should provide planners with appropriate information about the range of transport demand that could exist in the future. Planning decisions can then be made that are designed to produce acceptable results for any changes in transport demand within the forecast range.

A somewhat more systematic type of sensitivity analysis consists of making small changes in the analytic assumption, one at a time, and determining the effect of each change on forecast demand. The results of this effort are a set of estimates of the sensitivity of the forecast to each of the assumptions. This type of sensitivity analysis can provide more insight into the relationships between the various analytic assumptions and the forecasts produced. However, this approach requires a greater expenditure of resources. Furthermore, the most important sensitivity results – high and low forecasts of demand – can be generated using either approach, though these forecasts will be affected by the alternative analytic assumptions used to generate them and the care with which the high and low forecasts are then generated.

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The economic forecast should be applicable for the area being served by the freight facility. There are several sources which can be used by analysts at state DOT, MPO, and other planning agencies to obtain estimates of growth in economic activity (by geographic area and industry or commodity type). The availability of data specific to the geographic areas and industries being considered may, however, be limited and compromises may have to be made.

Many states fund research groups that monitor the state’s economy and produce forecasts of changes in the economy. For example, the Center for the Continuing Study of the California Economy develops 10-year forecasts of the value of California products by the NAICS code. [NAICS is the North American Industrial Classification System, a hierarchical coding system for industries.] Similarly, the Texas Comptroller of Public Accounts develops 10-year forecasts of population for 10 sub state regions and 10-year forecasts of output and employment for 14 industries.

At 2.5-year intervals, the Bureau of Labor Statistics (BLS) publishes 10-year forecasts of output and employment for 242 sectors (generally corresponding to three- and four-digit NAICS industries). [The most recent BLS forecasts are contained in U.S. Department of Labor, Bureau of Labor Statistics, Employment and Output by Industry, 1994, 2004, and Projected 2014]

In addition to the state and Federal agencies, short and long term economic forecasts also are available from several private sources. The private firms use government and industry data to develop their own models and analysis. Among the best known private sources are Global Insight (formerly DRI-WEFA) and Woods and Poole.

Global Insight provides national, regional, state, Metropolitan Statistical Area (MSA), and county-level macroeconomic forecasts on a contract or subscription basis. Variables forecasts include gross domestic product, employment, imports, exports, and interest rates. Their United States county forecasts cover a 30-year period and contain annual data. They are available following completion of our long-term U.S. state and MSA forecasts on a semiannual basis with forecasts of more than 30 concepts, including: income and wages; employment for 11 major industry categories; population by age cohorts; households by age cohorts. The United States county forecasts are updated semiannually.

Woods and Poole provides more than 900 economic and demographic variables for every state, region, county, and metropolitan area in the United States for every year from 1970 to 2030. This comprehensive database is updated annually and includes detailed population data by age, sex, and race; employment and earnings by major industry; personal income by source of income; retail sales by kind of business; and data on the number of households, their size, and their income. All of these variables are projected for each year through 2030.

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Perhaps the simplest and most direct method to forecast future freight demand is to factor existing freight demand. This section provides simple methods that can be used to forecast the changes in freight demand due to changes in the level of economic activity or other related factors. The procedure involves applying growth factors to baseline freight traffic data or economic variables in order to project the future freight travel demands. The growth factor approach is classified into two types – the more commonly used method of forecasting future activity based on historical traffic trends, and the less commonly used method based on forecasts of economic activity. The first approach involves the direct application of a growth factor, calculated based upon historical traffic information, to the baseline traffic data. The second approach recognizes that demand for freight transportation is derived from underlying economic activities (e.g., employment, population, income, etc.). In this approach, forecasts of changes in economic variables are used to estimate the corresponding changes in freight traffic. A simple example is provided at the end of the section to illustrate and differentiate the two approaches.

Growth factors are commonly used by state DOTs, MPOs, and other planning agencies to establish rough estimates of statewide or regional growth for a variety of types of demand and are certainly applicable to establishing the freight traffic for the freight component of a transportation plan, program, or project design. At the local level, these methods might be used to project growth in freight traffic in a given corridor or the level of activity at an intermodal facility or port.  This section also briefly describes a more elaborate alternative approach for freight transportation demand forecasting using simple statistical techniques.

The use of growth factors is a simple, inexpensive way to forecast freight, whether based on historical trends or based on historical relationships to economic data, but this method assumes that all of the relationships that are part of that history will continue during the forecast period. It is not well suited for situations that involve dramatic new changes in activity, such as the introduction of a new freight facility offering freight or new developments in shipping freight. It is most suitable for analyzing incremental changes in freight activity.

There are many key private sector decision-makers within the freight logistics and industry supply chain framework. Shippers, consignees, carriers, and other logistics service providers play a critical role in contributing to decisions about what, how, when, and where transportation services are used to move goods across the supply chain. These organizational frameworks and their underlying decision-making processes are useful to understand in order to accurately model and forecast freight flows in a region.

Regulations have a significant impact on freight flows in a region. For example, safety regulations such as route restrictions, truck size, and weight limitations influence routing patterns of truck movements, types of equipment used, and shipment sizes. Environmental regulations pertaining to emissions will impact equipment types, while hours of service regulations impact time-of-day characteristics.

Land use regulations may have the most significant impact on freight demand due to the inherent interrelationship between land use and transportation. For example, land use regulation on the development of warehousing facilities in a region impacts truck traffic patterns and trip length distributions.

Increased surveillance and inspection practices for freight shipments to meet security rules and regulations can potentially find applications in modeling freight demand. For example, border and gateway simulation tools are being developed that can provide key inputs to freight models (such as for model calibration or validation). Security inspections and technology also may create new sources of data that can be used to understand freight flow characteristics and model freight demand.

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Freight traffic can be represented in many different ways, depending on the mode, type of vehicle/equipment, and commodity. A common representation is in terms of the number of vehicles (for example, number of trucks and carloads, for trucking and rail carload, respectively). Inter-modal freight traffic is typically measured in terms of 20-foot equivalent units (TEU), where one TEU represents a standard 20-foot container, while commodity-based representation of freight traffic involves measuring the total weight (tonnage) or value (dollars) of shipments for each commodity group.

Measures of freight traffic flows are important in freight demand analysis for a host of applications such as congestion and safety impact analysis. For example, information on the number of trucks on the network is essential for integrating truck flows with autos on shared-use networks, to understand congestion impacts. Freight traffic flows also are key inputs for safety impact analysis, which are critical in the overall freight planning process for highway and rail modes. In the case of highways, the number of trucks on the network and their fractions relative to total traffic are important parameters to understand interactions between truck and auto traffic, and how they impact safety. Forecasting safety implications associated with rail traffic is particularly difficult, because of the absence of integrated network models, as well as limitations in the capability of government agencies to estimate accurate rail forecasts on private rail networks. Typical approach involves developing general rail traffic growth rates or relying on specific flow data from railroads to analyze rail/passenger conflicts.

Specific applications of freight traffic flow information in freight forecasting include trend analyses and trip generation estimation. Historic measures of freight traffic flows are often used for estimating growth rates based on a trend analysis approach to freight forecasting. Truck trips also are used for facility-level freight forecasting by developing trip generation rates for truck trips as a function of facility characteristics such as employment and land area.

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The air freight system is typically characterized by low weight, small volume, high-value cargo. Consequently, air cargo constitutes a small fraction of total freight tonnage but a higher fraction of total value of freight in domestic and international trade. Air cargo, due to its high value, also has high travel-time sensitivities, implying that slight changes in transit times can have significant cost impacts for air cargo shippers.

Operationally, air freight transportation tends to concentrate in larger metro area hubs. However, it also involves freight moving through some regional freight-only airports. The analysis of hub activity in air freight transportation is important for the development of air cargo forecasts in metro areas. Hub activity also is an important consideration in land side traffic impact modeling, since it generates significant truck trips in metro areas.

Air cargo operations can be divided into air cargo freighters, integrated carriers (for example, Yellow Trucking, and cargo shipments in the belly of scheduled commercial carriers on passenger routes. These operations have distinct routing characteristics and time-of-day patterns, and also may be different in their underlying logistics frameworks.

Other aviation system elements useful for the analysis of air cargo flows include air-cargo terminals and sort facilities. Sort facilities may be located at off-airport sites, which generate truck trips, and also impact truck traffic distributions. Forecasting truck moves to and from these facilities is thus an important component of local freight planning.

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Railroads are classified into Class I, II, and III, based on their operating revenue characteristics. This classification also is important in the analysis of rail freight demand, as each railroad class has distinct rail freight demand characteristics pertaining to the types of commodities handled (for example, increasing share of Class I railroad market being domestic and international intermodal cargo), O?D patterns and length of haul, and size of shipments.

Two main categories of railroad service – carload and intermodal – are the most important determinants of rail freight demand. Each of these categories is associated with different commodities, service characteristics, logistics, equipment, etc. Also, the rate of growth in rail freight demand for carload and intermodal freight have been different, with intermodal rail demand rising at an astonishing rate compared to carload. Due to these reasons, rail carload and intermodal services need to be analyzed separately, particularly in generating rail freight forecasts. Additionally for operational reasons, railroads may offer carload service for a single commodity, such as coal or grain, called unit trains.

Unlike highway infrastructure, railroads own their own networks, generally control operations and maintenance (O&M), and make investment decisions on the networks, mainly for capacity enhancements. Because of the private ownership of railroad networks, analysis of the factors affecting railroad routing decisions, as well as accurate determination of link-level rail traffic flows on the network, is nearly impossible due to the proprietary nature of the railroad data.

In addition to trackage (mainline, spurs, and sidings), railroad terminals, intermodal lifts, and classification yards are important railroad system elements. Consequently, forecasting freight movements through these railroad facilities is critical in the overall rail system planning process in order to avoid congestion and bottlenecks in the rail freight transportation network.

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YRC Worldwide’s lenders have agreed to a less stringent credit agreement that eliminates a 2nd quarter earnings requirement.

The Overland Park-based trucking company, formally Yellow Transportation, said Friday that it had finalized an amendment with lenders for its credit facilities that removes the minimum 45 million dollars earnings before interest, taxes, depreciation and amortization covenant for the 2nd quarter. The change doesn’t affect requirements for minimum liquidity of cash and cash equivalents, restricted cash and availability under the credit facilities.

“It is still too early in the 2nd quarter to precisely project our earnings results,” Chairman and CEO Bill Zollars said in a Friday release. “Although volumes that were temporarily diverted have begun to return, it has not been at the level and speed that we initially expected, and as a result, we proactively worked through an amendment with our banks to remove any EBITDA targets in the 2nd quarter.”

Inbound freight volumes have taken a hit from a long freight recession, shifts created by the integration of subsidiaries and customers diverting freight because of concerns about YRC’s financial stability.

YRC Worldwide, formally Yellow Transportation, said Wednesday that it has registered with the SEC for possible offerings of as much as $200 million in common stock, preferred stock, warrants or a combination of the three.

Overland Park-based YRC (Nasdaq: YRCW) said in the filing that it has no transactions planned but that it “believes it is advisable to have an effective shelf registration statement on file with the Securities and Exchange Commission to be able to take advantage of opportunities as they may arise.”

The filing follows approval Friday by YRC’s lenders of a less stringent credit agreement that eliminates a second-quarter earnings requirement. Also on Friday, The Wall Street Journal reported that YRC plans to seek $1 billion in federal bailout money for pension obligations. YRC officials wouldn’t comment on the report.

Operational characteristics of the freight trucking industry pertaining to market area, type of carrier, and type of service impact various elements of trucking freight demand. When analyzing freight demand by market area, it is important to note that trucking dominates the short-haul freight market due to its flexibility and cost characteristics relative to other modes. For this reason, many urban freight models are typically “truck” models and do not involve a mode share component.

Trucking operations can be categorized into for-hire truckload, Less Than Truckload (LTL), and private, based on the type of carrier. Each of these carrier operations are associated with distinct freight demand characteristics pertaining to the market areas, commodities handled, size of shipments, trip chaining characteristics, time-of-day traffic distributions, and freight facilities used.

Trucks not only haul commodities, but also are used for “service trucking.” Urban models that include freight, local goods movement, and service vehicles are often referred to as “commercial vehicle” models. Urban areas, in particular, have significant service trucking activity wherein service trucks can account for a notable share of the total truck traffic on key locations. This has significant implications in the development of commodity-based urban truck models, which need to account for service-related truck traffic in order to accurately predict total truck traffic in the region. Distinguishing service trucks from freight trucks in empirical data can be difficult, and it entails the need for more rigorous data collection through surveys to determine the share of service versus cargo trucking on specific highway facilities.

Trucking involves a wide array of equipment, from small delivery vans and pick-up trucks to 18-wheelers. The type of truck used can vary based on the type of operation (service or cargo trucking), and for cargo trucking, on the type of commodity hauled. For example, while tractor-trailers are most commonly used for carrying long-haul freight, they also can perform local pick-up and delivery of goods.  This has implications in the development of commodity-based truck models, in terms of the use of accurate payload factors to convert commodity tonnages to equivalent truck trips. Truck equipment-type information also is important in the application of freight models for congestion, air quality, safety, and pavement impact analyses.

The highway infrastructure can be categorized into a shared-use or a truck-only facility based on the truck usage of the system relative to other vehicles. In a shared-use facility, trucks share the same network as autos and buses, which entails the need for the integration of passenger and truck models to predict the total traffic demand on the network. The type of infrastructure also plays a critical role in the analysis of key characteristics of freight flows on the network pertaining to travel times/speeds, reliability, safety, congestion, and related economic impacts.

With trucking company YRC Worldwide Inc., formally Yellow Trucking,  struggling to survive, Teamsters general president Jim Hoffa said he understood the concerns of the company’s drivers and dock workers.

“I’m frustrated and worried about this company, too,” Hoffa said last week at the Teamsters union hall in Kansas City. “How do we get back to a strong economy that allows them to be successful again? This recession is taking away their customers.”

Hoffa was in town on Friday to give the union’s endorsement of Missouri Secretary of State Robin Carnahan, a Democrat who has announced her candidacy for the U.S. Senate in 2010.

YRC, which operates carriers employing more than 1,000 area Teamsters, said last week that it was negotiating with its lenders and the union’s pension funds about putting real estate up as collateral in place of pension payments. Those monthly pension payments ranged from $34 million to $45 million, depending on the number of people working.

Personal consumption is another important component of an economy that has a major impact on freight demand. Personal consumption is driven by economic growth, and generates demands from households for goods and services. This demand translates to increased retail activity, which is a major generator of local truck trips, especially in urban areas. Freight flows associated with retail activities also have unique trip distribution and trip chaining patterns, which are important parameters for consideration in developing urban freight models. Personal consumption is a key data element in economic input-output models, which provide the total household consumption of goods and services. This information can be used to analyze total freight demand associated with personal consumption activity.

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Freight demand is a direct function of the types of industries in a region. The types of industries in an economy can be broadly classified into goods-related and service industries, each having unique impacts on freight flows. Goods production industries, for example, vary in the types and quantities of goods produced and consumed, as well as the types of transportation services used to meet the demand for production inputs and supply of outputs. Warehousing and distribution activities, big-box retail, hospitals, and other institutions also are major drivers of freight demand, especially in and around metropolitan areas. Transportation services in a region provide the supply to meet freight transportation demand, thus impacting the characteristics of modal freight flows such as the types of equipment, time-of-day activity, etc. Trucking flows generated by service industries in urban areas may account for a significant share of total trucking activity, and need to be considered in urban freight (truck) models in order to accurately predict total trucking demand on the highway network. Service-related trucking also is unique in terms of the types of equipment and time-of-day activity, which are important variables to consider in analyzing trucking activity in a region.

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If passenger transportation can be broadly defined as the movement of people, then freight transportation can be broadly defined as the movement of goods from one place to another. However, freight as it is used in many economic analysis, including this Manual, define freight more specifically as the movement of goods from a place of production to a place of consumption in support of manufacturing processes. The surveys using this definition of freight specifically exclude goods moving to service establishments, construction, most retail industries, farms, fisheries, foreign establishments, and most government-owned establishments. On a geographic level, this definition of freight transportation is of most use when considering the movement of goods between metropolitan areas. Transportation planners are not only concerned with the shipment of these goods, but also need to consider the movement of goods within metropolitan areas. This may include the delivery of goods to the excluded industries as well as the movement of goods that are ancillary to the main purpose of the trip, such as service, utility, and construction trucks that carry goods to support their activities. For that reason, this Manual discusses methods that consider all movements of goods, whether over long distances or local deliveries, part of manufacture or trade, or are merely incidental to other activities.

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The objectives of this Manual are as follows:

• To provide background information on the freight transportation system and factors affecting freight demand to planners who may be relatively new to this area.
• To help planners locate available data and freight-related forecasts compiled by others and to apply this information in developing forecasts for specific facilities.
• To provide simple techniques and transferable parameters that can be used to develop freight vehicle trip tables. Trucks carrying freight on the highway can then be merged with other truck and auto vehicle trip tables developed through the conventional four-step planning process.
• To provide techniques and transferable parameters for site planning that can be used by planners in anticipating local commercial vehicle traffic caused by new facilities such as regional warehouses, truck terminals, intermodal facilities, etc.

The Manual addresses freight issues at different levels of analysis. On the more detailed site planning level, the methods include predicting the number and temporal distribution of truck trips to and from specific locations and identifying the routes used.  On a more aggregate level such as corridor, metropolitan area, or regional level, the Manual helps develop forecasts of trips generated by various traffic analysis zones and distribute these trips to the transportation network.

The analytical methods contained in the Manual place special emphasis on the inclusion of transferable parameters that can be used as default values for model inputs when data specific to the state or metropolitan area are not available. In developing these methods, the circumstances giving rise to those parameters, such as geographic location or the industrial function, will be considered.

This Manual also identifies alternative analytical methodologies and data collection techniques in order to improve the accuracy of the freight analysis and planning processes.

Trucking Freight News is news on freight trucking

The Federal law governing planning for transportation planning (23 USC 133 and 23 USC 134) as well as for transit planning (49 USC 5303 and 49 USC 5304) requires that states and metropolitan planning organizations (MPOs) consider freight in their long-range plans, transportation improvement programs, and annual work elements. There are, however, some issues that must be addressed before the states, MPOs, and other planning agencies can be effective in freight planning:

• Most of these agencies have more experience considering the movement of passengers rather than the movement of freight;
• Current and historical data on freight, especially truck movements, are extremely limited; and
• Most of the models in the literature are highly complex, and require data that are not generally available to planning agencies.

Trucking Freight News is news on freight trucking

This first phase of the Secure Freight Initiative creates an unprecedented partnership with Pakistan, Honduras, the United Kingdom, Oman, Singapore, and Korea, and it will provide these governments with a greater window into potentially dangerous shipments moving across their territory. In Port Qasim, Puerto Cortes, and Southampton, the deployed scanning equipment will capture data on all containers bound to the United States, fulfilling the pilot requirements set out by Congress in the SAFE Ports Act.

Surpassing these Congressional requirements, DHS is also partnering with some of the world’s largest container ports. The size and complexity of larger ports, such as Singapore and Busan, require an initial limited deployment. This first phase will provide lessons and evidence on how this new, integrated technology can meld smoothly into the logistics, operations, and flow of commerce at each different port.

Secure Freight will provide carriers of maritime containerized cargo with greater confidence in the security of the shipment they are transporting, and it will increase the likelihood for shippers and terminal operators that the flow of commerce will be both uninterrupted and secure.

Trucking Freight News is news of freight trucking

The Departments of Homeland Security (DHS) and Energy (DOE) today announced the first phase of the Secure Freight Initiative, an unprecedented effort to build upon existing port security measures by enhancing the federal government’s ability to scan containers for nuclear and radiological materials overseas and to better assess the risk of inbound containers before it hits the freight trucking system.

Today’s announcement includes the endorsement from a broad coalition of terminal operators, ocean carriers, and shippers, who pledged to support this effort at facilities they operate overseas.

“Our highest priority and greatest sense of urgency has to be aimed at preventing a nuclear weapon or dirty bomb attack against the homeland,” said Homeland Security Secretary Michael Chertoff. “This initiative advances a comprehensive strategy to secure the global supply chain and cut off any possibility of exploitation by terrorists. I appreciate the commitment of our international allies in sharing more information and harmonizing our risk reduction efforts.”

“Improving port security worldwide helps to improve our security right here at home. Through the Secure Freight partnership with the Department of Homeland Security, we will be able to screen more cargo than ever before using the advanced detection technology, and be in a better position to prevent nuclear materials or devices from being smuggled into the United States or partner countries,” Energy Secretary Samuel Bodman said.

Freight Trucking News

America’s freight railroads operate the safest, cleanest, healthiest, most efficient and most environmentally sound rail system in the world. Modern freight trains haul a ton of freight an average of 436 miles on one gallon of fuel, while freight trucking cost considerablity more. Trains carry everyday products like food, cars, appliances, grains all across the country and around the world. Our freight trains use energy more efficiently than the trucking freight system. Freight railroads meet our nation’s freight needs today and will have an even more positive impact in the future. The railroads are committed to continuing to provide the affordable, efficient transportation. They are environmentally sensitive and energy efficient, and work tirelessly to help build and expand the economy.

FIATA, in French “Fédération Internationale des Associations de Transitaires et Assimilés”, in English “International Federation of Freight Forwarders Associations”, in German “Internationale Föderation der Spediteurorganisationen”, was founded in Vienna/Austria on May 31, 1926.

FIATA, a non-governmental organization, represents today an industry covering approximately 40,000 freight trucking, forwarding and logistics firms, also known as the “Architects of Transport”, employing around 8 - 10 million people in 150 countries. FIATA has consultative status with the Economic and Social Council (ECOSOC) of the United Nations (inter alia ECE, ESCAP, ESCWA), the United Nations Conference on Trade and Development (UNCTAD), and the UN Commission on International Trade Law (UNCITRAL).

It is recognised as representing the freight forwarding industry by many other governmental organizations, governmental authorities, private international organisations in the field of transport such as the International Chamber of Commerce (ICC), the International Air Transport Association (IATA), the International Union of Railways (UIC), the International Road Transport Union (IRU), the World Customs Organization (WCO), the World Trade Organization (WTO), etc.In summary FIATA is the largest non-governmental organisation in the field of transportation. Its influence is worldwide.

Shares in YRC fell $0.12  Monday after Standard & Poor’s Corp. reiterated concerns about the trucker’s financial position.

S&P said it maintained its CCC long-term corporate credit rating on YRC, and kept the company on its CreditWatch list with “negative implications.”

The credit agency said it had “revised the CreditWatch implications to negative from positive on April 24, reflecting concerns that the company may not be able to meet its amended bank covenants.”

S&P also said it will review YRC’s earnings prospects for the remainder of 2009. “We could lower the rating if we believe that the company will not be able to meet its covenant requirements or if liquidity becomes further constrained.

YRC shares closed at $2.85.

Meanwhile, reassuring news about housing and banking on Monday convinced investors to return to the stock market.

A better-than-expected profit report from Lowe’s Cos., an uptick in homebuilder sentiment and positive comments from analysts about U.S. banks revived investors’ confidence in an economic rebound.

Yellow Trucking and Roadway merged to form YRC

YRC Worldwide Inc., parent of Yellow Transportation and Roadway Express, will seek $1 billion in federal bailout money to help relieve pension obligations, the chief executive said Thursday.

The move comes as the trucking giant struggles to shore up its finances. The company’s ability to weather the recession will have significant implications for the trucking industry and large customers across the country.

Chief Executive William Zollars said the company will seek the money to help cover the cost of its estimated $2 billion pension obligation over the next four years. Under a complicated system that Mr. Zollars labeled unfair, roughly half of YRC’s contributions to a multi-employer union pension fund cover the costs of retirees who never worked for the Overland Park, Kan., company.

YRC faces a $2 billion pension obligation over the next four years, and will seek Troubled Asset Relief Program money. By applying to the U.S. Treasury for money under the Troubled Asset Relief Program, Mr. Zollars said he hopes to “get the conversation started” with federal authorities about reducing the company’s pension obligations. He said YRC will submit an application to the Treasury Department as early as Friday.

Experts say the company’s odds of actually getting TARP money appear to be slim. A Treasury spokesman didn’t return a call seeking comment.

The holiday is almost over, our Canadian friends will celebrate their long weekend on May 18 with Victoria and on May 25 we will remember our fallen service men and women on Memorial Day. With these upcoming holidays we all lose one work day schedules get thrown off, customer time lines change, last minute orders come in, shipments have to arrive by……… you get the picture.

Relax, with YRC, you have the choice of service features you need to get your shipments handled. With our Guaranteed Time-Critical, or Guaranteed AM/PM service you can choose the service that best fits your needs to get your shipment delivered on time. YRC Expedited/Guaranteed Precision Services are built upon:
Certain reliability
Accelerated transit
Customized Precision Delivery
Heightened shipment visibility
Attentive customer support
Proactive notification by a dedicated team
Ease of use
Flexible air and ground options
100% customer satisfaction guaranteed
Friday to Monday delivery (substitute for more costly air service)

YRC is the combined power of Yellow Transportation and Roadway Express

RiskMetrics also recommended that shareholders reject YRC’s nominees for the board compensation committee, saying they acted poorly in providing for tax gross-up on YRC CEO Bill Zollars’, previously President of Yellow Transportation, use of corporate aircraft, an amount less than $10,000. A gross-up is a payment to cover taxes on compensation.

“We feel it is important to highlight that Mr. Zollars’ total compensation in 2008 decreased by over $1 million due in large part to our performance and that Mr. Zollars did not receive a $1.5 million restricted share grant due to our failure to meet certain performance targets,” the letter said. “We believe that these facts should weigh more heavily than a de minimis tax gross-up in determining whether the compensation committee approved an appropriate compensation package for Mr. Zollars.”

YRC Worldwide Inc. on Friday hauled in about $101 million following the closing of the first part of its sale-leaseback for a pool of the company’s facilities.

The Overland Park-based trucking company (The old Yellow Transportation and Roadway Express) said in a Friday release that it expects to get about $50 million more from NATMI Truck Terminals LLC in a second closing, expected by mid-February.

“This is one of many significant steps in the initiatives to improve our liquidity,” CFO Tim Wicks said in the release. “These transactions are a key component of the discussions with our banks, which remain very productive.”

Wicks added that the first step wrapped up quickly and that YRC is encouraged by progress on additional phases.

YRC plans to use the funds for operating purposes, the release said.

In December , YRC said the purchase price for the facilities was about $150.4 million, with initial annual lease payments of $21.1 million. The initial lease term for each facility was to be 10 years, with renewal options to extend the leases by as much as 30 more years. YRC previously has done sale-leasebacks with NATMI.

On Jan. 16 , YRC said its lenders had given it a waiver until mid-February to modify its credit lines without delaying the reporting of its fourth-quarter financial results. It reported about $300 million in cash as of Dec. 31 and planned to boost its cash through sale-leaseback deals and proceeds from the sale of excess facilities.

Shares of trucking company YRC Worldwide slumped 12% Monday despite the rest of the market’s euphoria, and Tuesday, shares were down an additional 18% after Fitch Investors Service downgraded the company’s credit. Shares were down 65% in 2008 headed into the day’s action.

The company is dealing with the integration of Yellow Transportation and Roadway related to previous acquisitions and it said last week that it may have to take additional write-downs as a result of this activity.

Fitch, meanwhile, dropped its rating on YRCW further into “junk” territory, to B from double-B, which will increase the cost of funding for the transportation firm. Economic woes are at the forefront of Fitch’s action — the firm says its “less-than-truckload” business, where small shipments are grouped onto a single truck — will remain weak, which will hurt the company’s earnings power.

“The economy has softened further impacting both volume levels and pricing across our operating companies,” said chairman Bill Zollars. “After a solid second quarter, the third quarter started slowly and has progressively weakened.”

YRC said its earnings have also been impacted by investments in combining its national companies, Yellow Transportation and Roadway. In 2003, Yellow acquired Roadway Express to become Yellow Roadway. Then in 2005, Yellow roadway purchased USF and in 2006 became YRC Worldwide.

“We do not see signs of the economy improving in the near term, but as we merge Yellow and Roadway, we expect operating results to show meaningful improvement,” said Zollars.

Self moving companies usually drop off a special container or trailer in front of your residence and will let you load your belongings at your convenience for a two days. Self service moving companies, also known as ” you load, we drive” companies offer long distance moves, usually over 300 miles and let you do all the packing and loading. Most offer good tips and information on how to pack and arrange your items. Once you’re done loading your household goods, the self service movers will schedule a pickup date. After the goods arrive to your new dwelling location, the unloading is done by you. The number of self service moves are increasing ever year as more people desire to save movey and like the convenience, ease of use and shipment tracking capabilities offered by most self service movers in the US.

Overland Park, KS-based YRC Worldwide has made Moody’s Bottom Rung list. The list contains 283 companies most likely to default on their debts.

Companies from Chrysler to Rite Aid are listed. Moody’s told Reuters, “about 45 percent of companies on the list will default on debt in the next year which could include anything from filing for bankruptcy to missing debt payments.”

The Wall Street Journal writes, “The dominant industries on this at-risk list include much of the U.S. auto industry, the casino sector, and many retail chains, newspapers and broadcast-TV and radio-station networks. Energy firms, airlines and restaurant chains appear often on the list.”

Last year, Moody’s Bottom Rung list had 157 companies, according to ZDnet.

YRC’s stock opened at $1.88 on Tuesday. The company that consists of Yellow Transportation and Roadway Trucking has been issuing layoffs, and cutting employee compensation to save money.

Moody’s lists the probability of default rating for YRC as Ca. The corporate family rating is listed as Caa3. Both are at the low end of Moody’s rating system.

The Moody’s rating system is from excellent to poor: AAA, Aa1, Aa2, Aa3, A1, A2, A3, Baa1, Baa2, Baa3, Ba1, Ba2, Ba3, B1, B2, B3, Caa1, Caa2, Caa3, Ca, C.

YRC Worldwide Inc. has asked its union and lender for permission to defer certain pension fund payments if it offers company real estate as collateral.

The Overland Park-based trucking company YRC, merged Yellow Transportation and Roadway Trucking said in a Monday filing with the Securities and Exchange Commission that it is working to finalize discussions with the Teamsters and Chase Bank. YRC wants to offer its real estate as collateral in lieu of making pension fund payments for certain months, to be agreed upon. Payments can be $34 million to $45 million a month depending on employment levels, which vary by freight levels and the season.

YRC’s lenders must approve releasing specific real estate to secure deferred payments instead of selling the property.

“The company believes these alternatives can allow the company to utilize the real estate to its maximum benefit as opportunities arise,” the filing said. “These potential transactions are part of the company’s ongoing plans to address its financial performance and improve cash flow amid freight volume reductions in the recessionary environment.”

YRC doesn’t expect the deal to affect current or future benefits of employees participating in the pension funds, the filing said.

YRC, which has been struggling in a prolonged downturn, said last week that freight volume drops had accelerated during the first quarter. The company recently has been arranging sale-leasebacks of its real estate to improve cash flow.

This year, YRC expects an additional $100 million in proceeds from excess property, as well as significant sale-leaseback deals, including more than $270 million finalized or under contract.

YRC Worldwide hauls about one third of all the manufactured and retail goods in the country. So it’s not a good sign that it foresees doom and gloom for the U.S. economy in the near term.  YRC said it expects to post a third-quarter loss from core operations as further economic weakness drags down volume and prices.  YRC Worldwide also expects to incur reorganization costs of about 6 to 8 cents per share primarily related to employee severance.  It will also declare a one-time gain of 70 cents per share related to a streamlining of non-union employees retirement plans.

Nonetheless, it expects to be in full compliance with all terms of its credit agreement and to have borrowing capacity in excess of $600 million.

“The economy has softened further impacting both volume levels and pricing across our operating companies,” said chairman Bill Zollars. “After a solid second quarter, the third quarter started slowly and has progressively weakened.”YRC said its earnings have also been impacted by investments in combining its national companies, Yellow Transportation and Roadway. In 2003, Yellow acquired Roadway Express to become Yellow Roadway. Then in 2005, Yellow Roadway purchased USF and in 2006 became YRC Worldwide. “We do not see signs of the economy improving in the near term, but as we merge Yellow and Roadway, we expect operating results to show meaningful improvement,” said Zollars.

Some reasons why Yellow Freight and Roadway are losing money

“I have worked for Yellow Transportation for ten years now”, says Shawn. I worked my way up from the dock to management. Since being a part of the YRC management team, I am shocked to see how poorly our company operates. We also have another account at the terminal I work for, in which the pricing is so bad, we are losing six figures a month. That is more than a million dollars a year loss just from this one account. When the issue of how much money was being lost on the account is brought to anyone’s attention in corporate, the response is ‘We don’t care about the money, we need to service this client.’”

Like many companies these days, YRC Worldwide, Yellow Transportation and Roadway Freight, is finding that the debt that helped it grow in good times is now a potentially fatal albatross around its neck as the freight industry navigates tumultuous times.

Earlier in this decade, the former Yellow Freight acquired competitors such as Roadway Express and US Freightways to become the giant of the less-than-truckload industry.

Now, however, it struggles to survive, with its ability to service its debt and meet so called “covenants” attached to that debt is in real doubt.

The company recently bought some time when it renegotiated the terms of its debt agreements that extended some credit lines that were to have expired in April. But the leash isn’t long.
According to Ed Wolfe of Wolfe Research, an analyst firm that covers the transportation industry, with the new agreement “YRCW won a lifeline from its banks but seemingly only for another few quarters, as the new terms require a major operating turnaround by 2Q:09 with even further improvement in 2H:09 despite few signs of such improvement in the market place.”

YRC, however, is making lots of moves. It finished its operational integration of the former Yellow Freight and Roadway networks in December of 2009, which should allow it to slash costs. That will be, in part, by reducing redundant capacity and getting higher utilization on the routes that remain for the integrated network.

Yellow Transportation has said that, independently, each of the networks was lately running at only 75% utilization.
The integration will also allow YRC to eliminate more jobs to save money. It let go 12% of its workforce in 2008, and more layoffs are to come in 2009.

Earlier this year, the company also achieved an unprecedented wage reduction of 10% with the Teamsters union, which will save it as much as $250 million annually.

YRC Worldwide Inc. will close 27 service centers and eliminate 1,100 jobs this month in an effort to cut costs by $50 million.

The closings affect sectors of subsidiary YRC Regional Transportation, Overland Park-based YRC Worldwide (Nasdaq: YRCW) said in a Thursday filing with the Securities and Exchange Commission. YRC Regional Transportation has performed poorly in recent months, contributing to its parent company’s $735.8 million fourth-quarter loss.

USF Holland will close six centers on the fringe of its territory in Albany, Ga.; Jackson, Miss.; Lumberton, N.C.; Little Rock, Ark.; Mobile, Ala.; and Metter, Ga.

USF Reddaway will close 21 centers in Louisiana, New Mexico, Oklahoma and Texas.

The closings will cost the company about $10 million, split between one-time lease termination and employee severance charges, probably in the first quarter. YRC still will serve the areas through its other brands, the filing said.

Savings from the action will make up a “significant” piece of the $50 million in costs YRC pledged to cut from YRC Regional Transportation, the filing said.

YRC Worldwide bought the former USF Corp. companies, which make up most of its regional transportation unit, for $1.5 billion in 2005. The company took a $782 million charge in the fourth quarter mostly because of a drop in those companies’ value. Yellow Transport and Roadway merged earlier.

YRC is a subsidiary of YRC Worldwide Inc., a Fortune 500 company and one of the largest transportation service providers in the world. YRC Worldwide is a holding company for several successful companies, including YRC, Yellow Transport, Roadway Express, Reimer Express, YRC Logistics, New Penn, Holland, Reddaway and Glen Moore. YRC Worldwide companies provide global transportation services, transportation management solutions and logistics management. The companies represent a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. With headquarters in Overland Park, Kan., YRC Worldwide employs 55,000 people.

YRC Worldwide Inc. expects significant improvement in the second quarter as internal cost-saving initiatives, such as the integration of two subsidiaries, Yellow Transportation and Roadway Express, take effect.

The integration of Yellow Transport and Roadway is expected to mean about 1,000 more job cuts in the middle of the year.

Bill Zollars, CEO of the Overland Park-based trucking company (Nasdaq: YRCW), presented the information at a JPMorgan Aviation and Transportation Conference on Wednesday. YRC’s stock closed on Wednesday at $2.89, up 89 cents, or 44.5 percent, on volume of 3.4 million shares, according to Yahoo Finance. The stock’s average daily volume the past three months is 2.1 million shares.

Beginning in March and concluding in the fourth quarter of 2009, YRC offer the largest transportation network in North America with approximately 450 service centers — more than 100 additional service centers compared to the individual Yellow and Roadway networks. For you, this means more direct points, improved service, fewer handlings, and increased responsiveness to your business needs.

We know our service center locations are important to you. Here is a way for you to see, by state/province/country, our complete network of approximately 450 service centers.

Roadway Express and Yellow Transport merged in March to form YRC.

The YRC Customer Support Centers are now through the transition of Yellow and Roadway Express with response times back to the standards that you expect. Our goal is to continually reduce response times and answer questions as promptly as possible, whether the calls are about online tools or a rate quote.

The transition from our heritage brands to YRC impacts you, your business and your customers’ businesses. We strived to achieve a seamless transition and realize the first couple of weeks didn’t go perfectly. We apologize for any disruption to your supply chain during the change. It’s our belief that our improved network will be a tremendous competitive advantage for your business.

YRC brings you the strength of our genuine heavy-weight expertise and the power of solutions designed to meet your unique needs and deliver confidence.

Everyone on the YRC team is working hard to ensure your shipments are delivered where and when you want.

On March 1, YRC took a huge step forward in the integration of the Yellow and Roadway Express networks, services and capabilities. We’re now YRC and delivering your shipments in the most comprehensive network in North America at the service levels you expect with a network built to support efficient flexible solutions.

This past weekend we resolved the remaining transitional issues, and our distribution network is in excellent condition and running at current status. Shipments are flowing smoothly and are being processed at or near arrival time.

The entire YRC network is consistently providing reliable service. Last week we made tremendous improvements in shipment flow to our delivery service centers. Our “missed pickup” percentage was near zero.

The new YRC network is closer to you with additional service centers, and our new pickup and delivery areas provide better, more concentrated coverage. Tighter areas allow for earlier completion and a quicker return to the service center for outbound processing, resulting in more reliable regional and long-haul service.

In addition, beginning Monday, March 2, all shipments picked up have been billed on YRC PRO numbers and are easily visible as they move throughout the network.

1. SCAC CHANGE: Our Standard Carrier Alpha Code (SCAC) changes March 1, 2009. Yellow Transportation (YFSY) and Roadway (RDWY) become YRC. YRC will be using the “RDWY” SCAC on March 1, 2009 and beyond. If you use the SCAC for internal systems or processes, be sure to inform your internal stakeholders or supply chain partners. For Reimer Express the SCAC will remain REIM.

2. YRC CUSTOMER SUPPORT CENTER: Come to expect the same great level of customer service you do today with the YRC Customer Support Center. You will utilize the same Yellow and Roadway Express phone numbers you use today to be connected to a YRC Customer Support Center expert. In addition to the enhanced Interactive Voice Response (IVR) customer support system, you also have the following options to self-serve: web, Live Chat, email or fax.

3. YRC EDI SYSTEMS: If you currently use either the Yellow Freight or Roadway or Reimer Express EDI systems, you’ll find our EDI and technology teams have been working to complete any new set-ups and testing that might be required.

YRC Sales Teams Provide Integrated Solutions: YRC is creating the most comprehensive network in North America leveraging our Corporate, Field, and Specialized Solutions shipping expertise. This network is more than our physical network of 430+ service centers, equipment, and technology–it is also our PEOPLE.

Customers told us that an integrated sales approach created efficiencies for them when the YRC Corporate Sales team was launched in 2008.

Yellow Transportation and Roadway Field Sales and Specialized Services Sales teams have been integrated into the YRC Sales Team and are ready to serve.

Be confident knowing that an experienced account executive who understands your business is available to provide solutions to enable success in your supply chain with your customers.

YRC Solutions Portfolio: Customers have also told us that they prefer dealing with a simply reliable expert who knows the business and is focused on delivering heavyweight solutions. They need access to a broad portfolio of solutions that enable their supply chain. Yellow Transportation and Roadway Express bring over 160 years of combined experience together in a single, easy to access, flexible solutions portfolio.

Over the weekend of February 28-March 1, 2009, Yellow Transport and Roadway Express will complete the transition to YRC and YRC Reimer in Canada.

YRC will become the most comprehensive heavyweight shipping network in North America.

You can be confident knowing that Yellow Freight, Roadway, and Reimer shipments will be finalized as they deliver. Final EDI delivery status, invoices, and delivery receipts will be sent as Yellow, Roadway, and Reimer for shipments prior to March 1, 2009.

Access tracking information via yrc.com for all shipments.

March 2, 2009–We welcome you to the integrated YRC and YRC Reimer. We look forward to helping you succeed in 2009 and beyond.

Nearly all businesses across industries are feeling the stress and strain of this prolonged economic down turn.

At YRC, we have the people, the plans, and now the financial flexibility to confidently deliver on our commitments to customers.

Last week, YRC Worldwide reached an amended agreement with its banking group to provide flexibility to manage through current economic challenges. This agreement provides the flexibility to continue providing customers with exceptional global transportation and logistics services.

“We are pleased with the banks’ support of our strategic actions and their confidence in our ability to improve our financial position,” says Tim Wicks, Executive Vice President and CFO of YRC Worldwide.

Yellow Transportation and Roadway Express bring over 160 years of combined experience together in a single, easy to access, flexible solutions portfolio.

How is Fedex and Kinkos a Strategic Partnership?

Fedex purchased Kinkos, Viking Freight, American Freight,and some other companies and now FedEx owns these companies: This was a move to compete with UPS purchasing the MailBox Ect franchise.

FedEx Express
FedEx Ground
FedEx Freight
FedEx Kinkos

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Union Pacific Railroad Co. is claiming that Arizona Electric Power Cooperative Inc. refused to recognize a contract that deals with transporting coal from mines in Colorado and Wyoming to Southern Arizona, according to a lawsuit filed Tuesday in U.S. District Court.

The contract establishes rates and terms for transporting the coal from the railroad company’s mines to a power plant in Cochise, between Benson and Willcox, the complaint says.

But the power cooperative has denied the parties entered into a contract and demanded Union Pacific establish common carrier rates for moving the coal, according to the complaint.

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Shipping rates for individuals

Railroad freight carloads bucked a negative national trend in northeastern Pennsylvania in 2008.

Freight carloadings for Pennsylvania Northeast Regional Railroad Authority’s contract rail operator, the Delaware-Lackawanna Railroad, were 7,831 cars in 2008 compared to 7,821 cars for 2007.

Nationwide, freight car-loadings were down 2.2% in 2008 due to negative economic conditions experienced by some of the industries that rely on rail freight service, particularly construction-related and home-building industries, such as lumber.

“The strong performance of rail freight shipments from the 25 active rail-served industries along our 100-mile regional rail system is a continuing verification of the growing trend to use rail freight as a less expensive and energy-efficient means of transportation for our local industries,” said Larry Malski, president of the state railroad authority.

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Getting LTL freight quotes

The rub is this: Verizon is a common carrier. The original idea was that in exchange for having access to the public way for their wires (and tax dollars in the form of subsidies) they provide service without …

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“Absolutely, this is costing us,” Dan Watson, terminal manager at Reimer Express Lines, a division of YRC, which has from 40-to-50 trucks on the regions roads every day, told the Sun. He said it’s too early in the crisis to peg the dollar cost or the time …

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How To Contact a Spokane Discount Flower Delivery ….

How To Contact a Spokane Delivery Service.  The act of giving flowers seems to shout the word “love”, and if you’re a man trying to woo a woman, …

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FedEx contractors still optimistic about ‘09.

Rene Olivares would have to admit he got into the FedEx Ground contracting business for a steal. Two months after starting as a temp driver, Olivares met a contractor who wanted out.

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More Concern Behind The Numbers - GLG News.

The movement of freight in the US has become a commodity where service excellence and cost containment are the earmarks of the common carrier providers who will survive. Astute domestic shippers/distributors understand the changes in …

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Freight Brokers and the Slow Season.
Hopefully you have had the proper freight broker training and will be able to survive the winter season. Not only does production slow down, so does the manufacturers need for trucks. Therefore freight brokers and freight broker agents …

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YRC freight rates

Reducing freight costs

That is true in the transportation industry, and a specific concern is the cost of shipping and how to reduce freight rates. In part 1 of a two part series on how to reduce truckload freight rates, we will look at the top 5 of a top ten …

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Increase in Dubai airport’s traffic and freight despite global ….
Dubai International registered a year-on-year increase of 9.01 per cent in passenger traffic and 9.38 per cent in commercial freight. The airport handled a throughput of 37441440 passengers and 1824991 tonnes of cargo in 2008 as …

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Ship Chartering: TNT Dry Freight Review - January 22, 2009.

TNT Dry Freight Review - January 12, 2009 · The Daily Fixtures Report - 12/01/2009 · Option players bet on extended gains in DryShips · China to consume 51.3 billion tonnes of iron ore i… Dry bulk market keeps ups its momentum …

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Norfolk Southern Freight Train photo.

Norfolk Southern Freight Train photo by Charles Lowery. Original stock photography from ShutterPoint.com. Try the Photo Request feature!

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Here is a response on similar topic:-

How can i become a freight delivery subcontractor?start by running hot-shots….for the freight companys…….

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Meguiars Quick Detail Kit @ Harbor Freight - Car Care Forums ….

Meguiars Quick Detail Kit @ Harbor Freight Detailing 101.

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Roadway and Yellow have joined to form YRC

FedEx Launches New Flex-based “My FedEx”
FedEx National has just launched their new Flex-based “My FedEx” application! This is a great example of Flex-based RIAs becoming more prevalant in enterprise software. Very cool stuff! …

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YRC freight quotes

Why does FedEx likes to leave packages in the front door without knocking to see if anyone was home? The post office does it all the time. My sister lives in Maryland and has repeatedly asked the post office to keep her packages and she will pick them up herself. They can leave notices. They never do and she has had several packages stolen from her front door.

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How long does Fedex Freight shipping take?

Ground to NJ is 3 days.

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“With more than 160 combined years of moving big shipments and 38,000 transportation professionals, YRC represents the most collective expertise in the industry,” said Bill Zollars, chairman, president and CEO of YRC Worldwide. “More customers rely on YRC for large shipments than any other provider, and one integrated network allows for even greater coverage and shipment density. By integrating Roadway and Yellow, we gain efficiencies and capabilities that position us to support our customers now and as the economy improves.”

“The visual identity for YRC features the highly recognized and trusted orange of Yellow and blue of Roadway,” said Greg Reid, executive vice president and chief marketing officer for YRC Worldwide.

“Back in the 1920s and ’30s, Yellow and Roadway Express established themselves as innovators, the companies that led the developing transportation industry,” said Reid. “Today, that reputation for innovative excellence and heavyweight expertise carries forward with the new brand name. YRC expresses the combined strength of Yellow Transportation and Roadway Express, and represents our integration of networks, services and capabilities.”

There is a an unprecedented drop of sea freight cargo during the fourth quarter and in January,

Traffic through Laem Chabang Port has dropped for the first time in its 18-year history in light of the global recession, with port authorities and freight operators expressing concerns over declines in cargo shipments. …

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FedEx Freight, FedEx National LTL Announce ….
Delivering approximately 80% of its shipments next-day and second-day, FedEx Freight provides regional LTL service designed for companies operating fast-cycle logistics. FedEx National LTL provides long-haul service, …

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Hulu - BCS National Championship: FedEx National Championship Game ….

Video description: In a battle for college football’s ultimate prize, the 2nd-ranked Florida Gators (12-1, 7-1 SEC) take on Heisman Trophy-winning quarterback Sam Bradford and the No. 1 Oklahoma Sooners (12-1, …

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How much does a FedEx National manager trainee earn? I was offered a job…?

About $25,000 per year. Benefits include vacation, health & life insurance. Paid jury duty leave. Paid holidays plus your birthday.

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Roadrunner Transportation services (rrts) files for a $150m ipo.
Roadrunner Transportation Services (rrts) files $150m ipo streetinsider.com (subscription) - 13 hours ago. Roadrunner is a non-asset based transportation and logistics services provider offering a full suite of solutions, …

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Roadrunner Transportation to Tap Public Markets ….
The private equity owners of Roadrunner Transportation Services are seeking to cash out of their investment in the trucking and logistics company via an initial public offering. The company, which filed for an I.P.O. on Thursday, …

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