Yellow boss says to expect more LTL consolidation
OVERLAND PARK, Kan. (May 26, 2005) — Yellow Roadway Corp. chairman and chief executive William Zollars in an interview with Marketwatch this week that he predicted further LTL consolidation in North America. Zollars said that four or five big companies would eventually handle most regional, second-day and other LTL business.
His comments came the same day Yellow Roadway closed its purchase of USF, creating a $9 billion a year trucking giant with 70,000 employees.
Within Yellow Roadway, the USF companies will join New Penn Motor Express to form YRC Regional Transportation headed by Jim Staley, former President of the Roadway Group. YRC Regional Transportation will be headquartered in Akron, Ohio, also the home of Yellow Roadway’s Roadway Express unit.
Zollars’ suggestion of more LTL mergers and acquisitions comes a week after UPS, the largest parcel carrier in the world, jumped into the heavy freight LTL market by buying Virginia-based Overnite Corp. for $1.25 billion.
UPS says the Overnight buy will expand its heavy freight portfolio by offering a variety of LTL and some truckload services to North American customers. It also will immediately position UPS as a top five North American LTL carrier.
— via Truckinginfo.com
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