William B. Cassidy, Senior Editor | Jan 30, 2012 3:50PM EST
YRC Worldwide is proposing changes to its long-haul freight network that will speed shipments and take long-haul carrier YRC out of the next-day freight market.
The change of operations, which must be approved by the Teamsters union, would be the most significant step yet in the restructuring of YRC launched last year by CEO James Welch and President Jeff Rogers.
“We’re going to have YRC focus on long-haul,” Rogers said in an interview Monday. That means eliminating the next-day Velocity network YRC launched in 2008.
With that decision, the long-haul carrier will no longer compete with sister companies in the YRC regional group for same-day or next-day freight.
“We’ve got Holland, New Penn and Reddaway, the best next-day carriers in their footprint,” Rogers said. “We’re going to let them do what they do best.”
Restructuring its long-haul network will help YRC load more freight direct to more points, reducing the potential for damage, building density and speeding shipments.
“We’re going to eliminate a lot of handling, reduce several thousand handles a day,” said Rogers. “We want to be the best two- to five-day carrier, period.”
The present network is designed to handle 70,000 shipments per day but YRC is handling on average only about 48,000, the company said in its proposal. YRC will not close any terminals, Rogers said, but change their function.
For example, a distribution center might become an end-of-the-line terminal. The redesign will concentrate freight flow through a smaller number of distribution centers.
“We’re going to increase our emphasis on the corridor hub,” Rogers said.
The company has about 300 terminals and it trying to auction inactive surplus facilities shuttered after the 2009 merger of Yellow Transportation and Roadway. YRC plans to shut down 60 “road domiciles” at end-of-the-line terminals.
“We’re moving a lot of the drivers back to the distribution centers,” said Rogers.
The two proposed changes of operations were sent to the Teamsters union with a request for a hearing on or about Feb. 28. They are available here and here.
-- Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter @wbcassidy_joc.