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Online ads stress importance of YRC to 'competitive rates'
YRC Worldwide is engaging its competitors -- and the media -- in a fierce battle for freight and customer confidence after squelching fears of a near-term bankruptcy.
Fresh from its successful debt-for-equity swap Dec. 31, YRC Worldwide is taking its message to shippers through advertising and marketing aimed at building volume.
It's the latest attempt by the nation's largest trucker to recapture business lost over the past three years, which saw YRC Worldwide rack up more than $2 billion in losses.
The debt-for-equity swap retired $470 million in debt and transferred ownership of the company to its bondholders, triggering long-term lending and labor agreements.
With the exchange, YRC steered clear of a potential bankruptcy reorganization, with enough liquidity and reserves to roll into 2010, and fierce LTL competition.
From 2006 through 2008 YRC Worldwide's revenue shrank from $9.9 billion to $8.3 billion, and it's expected to post about $6 billion in revenue in its 2009 results.
Regaining business shippers shifted to other less-than-truckload carriers and adding new volume is now critical for the company's plans to reverse its fortunes in 2010.
YRC is heralding the success of its debt swap in online advertising with The Wall Street Journal and The New York Times, stressing the importance of its survival to shippers.
The ads took the form of a letter to customers from YRC Worldwide Chairman and CEO William D. Zollars thanking them for their business and extolling YRC's employees.
For shippers, "Our stronger financial situation combined with the professionalism of all our employees … means more reliable choices, continued competitive rates, additional service options, and a healthier transportation industry," Zollars said in the ads.
It's a message Zollars also delivered to shippers in a video on insight.yrcw.com, a promotional Web site maintained by the company.
"A healthy YRC Worldwide is good for the industry and good for you, especially as the economy rebounds," he said.
If the economy isn't rebounding fast enough, YRC is willing to lend a little help.
The company is offering shippers that tender multiple shipments $50 off their next 10 less-than-truckload shipments worth $150 or more.
Shippers attach $50 discount coupons to the "special instructions" section of their bills of lading to receive the special promotional discount.
Contact William B. Cassidy at wcassidy@joc.com.
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YRC's market share is shrinking along with the company as we all know it. If they do survive and thats a big if they will be a much smaller entity at best and never return to the head of the pack. At this point in time they are no longer the market leader and a very questionable on going concern at best. A recent teamster conference call put losses at $1 million per week. If I am a shipper am I going to trap my freight on a sinking ship? Most are voting with their shipments a resounding no!!!
- By freightanalyst on 1/19/10
Contractual obligations aside, YRC comprises only an estimated 12% of the existing market in a market of 25% excess capacity in the LTL market. While I believe YRC will manage an existence into the 2H2010 market I foresee a further decline in returns with rates continuing to deteriorate rather than stabilizing. Yes, cash is King but the niche YRC holds is solid. Can they survive a deterioration in revenue? In the short term, yes. In the long term, no.
- By Richard.Snowden on 1/17/10
YRC Pays Wicks $800,000 to Stay
I think it would have shown a greater confidence in the companies survival to the customers (past and present), the employees, investors and the generall public if he had recieved this bonus in stock and not supposedly badly needed cash........
http://www.google.com/url?sa=X&q=http://www.joc.com/node/415839&ct=ga&cd=bY-31G7fBYM&usg=AFQjCNHz5A53sszo4vVxo2a1T45VEcjfGQ
- By looking on 1/15/10
Much of their campaign to win back shippers is trying to convince the shipping community that customers aren't getting as far away from their sinking ship as possible. Regardless of what they are pushing out to their customer base, they don't stand a chance.
- By climbtosafety on 1/15/10
These seem to be depserate last attempts to stay a float. The industry has healthy competition although freight rates are at all time lowes. Look for YRC to further discount as with this gimmic coupon they are advertising to further erode their financial stability. Look for their demise in the next 60-90 day when they will run out of cash.
- By freightanalyst on 1/14/10
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It appears due to recent analysis of YRC portfolio of brands, YRC is slowly making gains slowly bringing back customers it lost during the uncertainty of the debt swap process.Now that the company is on stable ground from surveys with various customers they are either staying or coming back to YRC. New data on customer gains should help the stock to soar. I have warned many before on writing the epitaph to quickly.