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COMPETITION WATCH: U.S. Xpress outsources tire management to Bandag

MUSCATINE, Iowa - U.S. Xpress, the fifth largest publicly-owned truckload carrier in the United States, has signed...

MUSCATINE, Iowa – U.S. Xpress, the fifth largest publicly-owned truckload carrier in the United States, has signed an expansive, six-year agreement with Bandag to handle its tire management needs.

Beginning January 2005, Bandag will manage a total tire program for U.S. Xpress Enterprises of Chattanooga, Tenn. The agreement covers approximately 5,500 tractors and 14,500 trailers.

"Our tire management services will help U.S. Xpress better predict and manage tire costs, and allow them to focus more time and resources on their core strength of meeting shipping customers’ needs," said Martin Carver, president, chairman and CEO, Bandag.

Max L. Fuller, co-chairman, U.S. Xpress Enterprises, said Bandag’s dealer network, nationwide coverage and proven tire management outsourcing capabilities were compelling reasons for his company to enter into the agreement.

"By consolidating all of our of tire management tasks, we will reduce operating expenses. We also believe we will increase our fleet’s uptime, which will ultimately lead to higher levels of customer satisfaction," Fuller said.

Bandag will manage the entire fleet’s wheels, tires, retreads and tire-related services.

"We plan to proactively manage the condition of the fleet’s tires and thereby help U.S. Xpress improve upon equipment utilization. We are also addressing this customer’s objective for optimal fuel efficiency through the use of applicationspecific Bandag retreads and new tire products," said Carver.

Bandag will use several proprietary services to help reduce the number of incidents and the time a truck may be out of service. Bandag Emergency Tire Assistance will provide the fleet with roadside assistance, and proprietary services such as Bandag Yard Check, a vehicle inspection method customized to U.S. Xpress specifications, will improve vehicle readiness and generate additional information to help manage the fleet’s equipment.

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