Freight and Distribution

Mattel presented YRC Glen Moore, a division of Yellow trucking,  with its 2010 Truckload Carrier of the Year award, ranking it highest among all Mattel providers.

Mattel also recognized them with 2 “Mattel Team 100″ service awards. Team 100 awards honor on-time delivery excellence and were given for exemplary performance in transporting Mattel products to two leading nationwide retailers.

In a separate presentation, Mattel extended YRC Glen Moore Customer Service Representative Michelle Kistler with a Certificate of Excellence award, as part of its carrier performance recognition program. In presenting the award, Mattel noted that Kistler’s performance represented Mattel values, “Play with Passion” and “Play Together.”

R+L Carriers provides expedited service to Anchorage, Alaska and surrounding areas.  Their expedited service is second to none. You can ship your LTL and truckload freight to Alaska with the confidence and peace of mind that only a transportation company known for reliability and exception-free delivery can provide.

RICHMOND, Va. —Estes Forwarding Worldwide has named Scott Fisher as president and CEO.

Fisher, along with Estes Express Lines, founded Estes Air Transportation Services, now known as Estes Forwarding Worldwide, in 2003. He previously held the positions of executive VP and COO. In his new role, Fisher is responsible for the day-to-day management of the company and serves on the board of directors.

Prior to founding Estes Forwarding Worldwide, Fisher served as vice president of sales and marketing with Lakeville Motor Express. He is a graduate of the University of Wisconsin, Stevens Point.

“Scott helped guide Estes Forwarding Worldwide from a fledgling start-up to the well-respected freight forwarding company it is today,” said Rob Estes, president and CEO of Estes Express Lines. “Under his leadership as president and CEO of Estes Forwarding Worldwide, we look forward to the opportunity of serving more customers and destinations as the company continues to grow.”

Needing to get your freight to your customer second day air.  There are many carriers and brokers that can do it for you. Cost are all over the place so do some research as it can save you hundreds of dollars. Air services range from next day air to 2nd day air to 3rd day air to deferred air which is the cheapest. Remember air freight is dimensional so rates are no only computed by weight but also by size.

Morgan Stanley’s revised its estimates on Echo Global Logistics, Inc 11% below consensus for 2010 and 21% for 2011, the company reports this morning.

“Consensus expects a rapid acceleration in ‘core’ op margins – a scenario more like our bull case – despite a number of near-term headwinds,” Morgan Stanley writes. “If the story will take longer to play out, the stock does not warrant a best-in-breed CHRW-like multiple, in our view.”

Echo Global Logistics closed Friday at $11.90.

AAA Cooper won this prestigious award which is sponsored by NASSTRAC and Logistics Management magazine.  It recognizes trucking companies that demonstrate excellence in performance and results. This survey enables shippers to grade only the carriers they utilize on a quantitative scale in the following areas:

• Customer Service - Overall Responsiveness, Employee Attitude, Problem-Solving, Dependability, and Sales Force Support
• Operational Excellence - Transit Time Standards, On-Time Delivery, Delivery Flexibility, Billing Accuracy, and Claims Resolution
• Pricing - Price Competitiveness, Pricing Structure, Flexibility, Contract Language
• Business Relationship - Strategic Partnership, National Account Manager Effectiveness, Years in Relationship
• Leadership/Technology - Electronic Capabilities, Visibility Tools, Industry Innovation, Leader in New Service Offerings

Oak Harbor Freight is not only contending with a bad economy and low freight volumes, there is also an ongoing truckload driver shortage, new federal and state regulations affecting engine emissions and safety, Dept of Transportation hours of service rules, and increased competition. The capacity crunch brings another dimension to a challenging marketplace.  Shippers can help the carriers by providing and notifying the carrier on the best appointment times and to help avoid excessive wait times for drivers. Some shippers have a habit or expectation of being able to retaining trailers at their yard with little or no compensation for the carrier. A trailer that is not producing revenue is a real cost for a carrier like CTS Advantage Logistics.

The capacity crunch currently affecting the trucking industry is likely to be here for awhile. That is the assessment from many freight transportation experts.

During challenging business cycles there are steps shippers can take to improve their relationship with their carrier to help maintain mutual business goals, and ultimately get their freight moved.

Build relationships with your carrier by even placing relationships above shipping rates. All businesses are under pressure to cut costs during an economic downturn. If shippers who take advantage of the carriers to drive down rates could find themselves in a difficult situation when the marketplace shifts, which it will invariably do over time.

Naturally, shippers are looking for the best value. By keeping channels of communication open, shippers and carriers can mutually explore ways to achieve financial and operational goals.

Many shippers have pressured carriers to extend payment terms out to 60 days or even up to 120 days. This makes it very difficult for the carrier to meet its own financial obligations. If the carriers go out of business, it only hurts the companies that need to move their freight.

Deutsche Bahn who owns DB Schenker stated: In contrast to the same year-ago period the number of passengers traveling in the Deutsche Bahn’s trains and buses increased by 13.3 million to 1.36 billion. The rail passenger transport segment declined slightly by 0.4 percent, or 4 million, to 954 million recorded passengers. While long-distance transport noted a gain of 1.1 million passengers (plus 1.9%) and DB Urban Transport added 12.7 million passengers (plus 3.5%), DB Regional reported a decline in recorded passengers of about 5.9 million (minus 0.7%). The main reason for the drop was tenders that had been lost in previous years. This reflects the effects of competition in the regional transport section, which was expressly desired by policymakers, on Deutsche Bahn’s balance sheet. DB CEO Grube: “Against this background we can see just how important the acquisition of Arriva will be for us. It will enable us to successfully assert ourselves during the consolidation process in the European shipping transport markets even if we lose market share in our domestic business.”

Volumes sold in rail passenger transport rose in the first half of 2010 by 2% to 38.1 billion passenger kilometers. During the first half of 2010 the number of persons traveling via Deutsche Bahn buses rose by 408.7 million, or 17 million more than in the same year-ago period (plus 4.4%). Volumes sold in the bus segment increased by 136 million passenger kilometers, or 2.9%, to 4.8 billion passenger kilometers.

Each day, the professional drivers of YRC Worldwide are out and about in the communities where they live and work. While they’re out helping customers, they’re often in the position to help others as well.

That’s the situation Reddaway linehaul driver Dan Istre found himself in during a routine shift.

While in Snowville, UT, Istre was waiting to meet another driver and noticed smoke, then flames, coming from a small motel. Without hesitation, he ran across the road and began pounding on doors, even kicking them open to ensure everyone got out safely before the fire engulfed the entire building. Quickly, the fire spread and the motel burned to the ground.

Had it not been for his quick thinking, the outcome could have been so much worse. In that moment, Dan was truly a hero in every sense of the word.

That act, combined with an impeccable record that includes more than one million miles of safe driving, recently helped him cinch top honors as the 2010 Idaho Driver of the Year, awarded by the Idaho Trucking Association (ITA). Istre was recognized in a ceremony Aug. 13, 2010 at ITA’s 76th Annual Convention.

“Dan is the epitome of a professional driver, and his 16 years of safe driving with Reddaway are proof of that. From his appearance to this attitude, he is a quality individual,” says Mike Stephenson, Boise, ID terminal manager. “His dominant attribute is his focus on safety; there is no compromise here, followed closely by his desire to service our customers. These two qualities coupled together make Dan a tremendous asset to Reddaway, to our customers, and to the motor freight industry.”

YRC Worldwide sold their YRC Logistics to Austin Ventures. The move launches MIQ Logistics as a new brand in the marketplace.

YRC Worldwide will retain our two China-based joint ventures and will continue offering complementary shipping logistics solutions through our strategic relationship with Austin Ventures.

YRC Worldwide remains one of the largest intra-China ground transportation service providers. Our proficiency and expertise in China helps us deliver confidence with an array of in-country global logistics solutions, including customs brokerage and value-added services.

While the sale allows YRC to continue providing customers with exceptional logistics solutions, it also enhances their ability to focus on transportation. The transaction provides additional capital, and demonstrates the ongoing support of our stakeholders: Arrangements with their lending group allow them to keep 100 percent of the proceeds from the sale.

Thanks to the structure of the sale, it’s a seamless change for YRC Worldwide customers who use the MIQ Logistics services. If you’re one of these customers, there’s no change in the way your business is handled.

YRC Worldwide brings you the most comprehensive network in North America–powered by Genuine Heavyweight Experts® you won’t find with any other provider. Our professional drivers are the best in the freight shipping industry. And this is the month to celebrate them, in America and Canada.

The Canadian 2010 National Professional Truck Driving Championships take place Sept. 16-18.

We’re proudly sending three championship drivers from YRC Reimer to that event:

* Harvey Gording–City driver from Regina, Saskatchewan, competing in the Single/Tandem class
* Larry Radons–City driver from Regina, Saskatchewan, competing in the Straight Truck class
* Rob Trager–City driver from Winnipeg, Manitoba, competing in the Single/Tandem class

In the U.S., National Truck Driver Appreciation Week begins Sunday, Sept. 19, and runs through Sept. 25.

If your driver deserves special appreciation, let us know. We love to hear about outstanding drivers from YRC, YRC Reimer, YRC Glen Moore, New Penn, USF Holland or Reddaway.

Looking back to the summer of 2008, we start to see some similar patterns developing in the oil markets. Supply worries, fluctuating US dollar values, speculation on a heating up emerging market demand for oil, and an aggressive stock market set on trading in commodities has all added to a volatile environment for oil prices and freight rates.

The result: Oil prices today probably well outpace actual supply/demand dynamics and now have a piece of speculation built in to the total price per barrel for West Texas Crude.

Of late, there are more volatile swings in the price for oil based on the value of the U.S. dollar. As the dollar falls, the price to import oil goes up–and the price per barrel rises with it. More than supply fears during a natural disaster, changes at OPEC, or unrest in the Middle East, the fluctuation of the dollar is something that creates the most daily swings in price. If oil prices move up sharply, look for changes in the exchange rate.

Analysts are still expecting the average price per barrel to be in the $95 range, although this amount gets adjusted with just about every passing month. The next significant EIA update on oil price forecasts will be offered on May 11. By then, any disruptions in oil transfer in the Gulf due to the BP oil spill will be fully understood and the actions by OPEC will be in the mix as well.

For real supply, U.S. stockpiles of oil continue to hold steady (or slightly increased of late), suggesting that demand is still generally weaker and the availability of oil is sufficient. Given that oil prices continue to inch upward, as U.S. stockpiles begin to show a depletion (which should happen as refiners begin to draw from oil stockpiles to build up summer blend fuel stockpiles), the price of oil is likely to begin to approach the $90 per barrel mark. Analysts believe that it will crest the $90 mark early in the summer then move upward into the mid-nineties by late summer and into the peak shipping season. This will affect a wide range of prices if all forecasts hold true.

Remember that there are a significant number of factors that have both a positive and negative impact on oil prices. It is a complex mix of variables–all of which can have big implications for the supply chain,  trucking companies and transportation industries.

For supply chain managers impacted by hurricanes, caught up in trucking freight through the southern portions of the U.S., July through October can have an impact. Whether trying to predict how many additional products to have on hand as a storm approaches a region or to make the decision to divert shipments away from an area of high risk, there are some online sources that give great tracking tools for storms. These sources provide some of the earliest warning predictions that forecasters are able to provide for possible storm formation.

The prime site for seeing visual depictions of possible hurricane and tropical storm formation is at the National Hurricane Center. The map is interactive; rolling over any circled areas of possible storm formation will pop up a textual discussion of the region of concern. Once a storm is labeled as a depression, it can then be clicked on to get several different tools including a three- and five-day cone (prediction of where the storm is headed), intensity, mariner’s rule, and many others. Tabs at the top of the map allow you to switch between Atlantic and Pacific theaters.

Accuweather.com also offers up a variety of additional tools for hurricane watching (but refers back to the National Hurricane Center information frequently). The Accuweather information along with detailed discussion of the storms most likely track are here.

And there are many others that also provide good hurricane information. A number of supply chain managers like Estes and YRC have these sites bookmarked and make it part of their morning to take a quick tour through them to get updates on possible formations or storm track information if a storm is active.

The “Philly Fed” manufacturing index showed weakness in early August. Why is the Philly Fed index important to the rest of the economic outlook?

YRC: Our take

The Philadelphia Federal Reserve survey of manufacturing measures activity in the Philadelphia Fed banking region. Because of the off-cycle period of time that the Philly Fed index measures, it is one of the early barometers of manufacturing activity for the broader economy. Analysts watch it closely as a potential signal of what they might see in the broader U.S. manufacturing economy after figures are released at the end of August.

The index for August turned negative in the month, falling to -7.7 from a +5.1 in July. New orders and freight shipments also slowed in August, showing a -7.1 and -4.5 respectively. One of the bright spots for the index is that future sentiment by manufacturers in the region showed that it should turn positive in the next six months. Future New Orders were especially stronger, moving up to 25.7 from a 17.9 figure in July.

Over the past several months there has been a slight disconnect between the Philly Fed report and the Manufacturing Report on Business from the ISM. The ISM has been largely in an expansionary mode, although it has been declining of late. There could be some concern that the Philly Fed Manufacturing Index would signal that the PMI could turn negative in the next month if current trends continue. However, if some of the retail scenarios are correct as well, there could be some very strong inventory rebuilding activity still to come in the next several weeks–a positive sign for both manufacturing and wholesale distribution.

The primary association for Air Freight Cargo carriers worldwide says that demand is strengthening for both passenger and cargo traffic. Is this increase in demand tied to inventory strategies?

YRC’s take on this:

The International Air Transport Association says that international air traffic statistics for July were up, and should remain strong through the end of the year. For July, passenger traffic was up 9.2 percent and cargo volumes were up 22.7 percent over the same month in 2009. These statistics were slowing slightly between June and July, but gave enough strength for the sector that analysts are bullish on it.

Analysts are interested in knowing what has been driving air cargo traffic and what lies ahead for the sector moving into the final two quarters of the year. First, the comparisons for the sector will begin to get more difficult. In the final half of 2009, companies realized that they had done a good job of reducing inventory levels, and as the global economy began to improve throughout 2009 and early 2010, these companies moved aggressively to replace inventory shortages. Using air cargo to fill gaps in inventory without leading to an overstock situation–avoiding larger load sizes–became a more comfortable trend, and led to a significant rise in air cargo volume. Therefore, year-overyear comparisons for the segment will get tougher.

Second, companies are likely to get right back into the same mode they were in at the end of last year. Going into the season much lighter than usual in inventory, there are likely to be some similar restocking trends occurring later in the fourth quarter or most certainly in the first quarter of 2011. Unless conditions in the economy significantly change for the better, inventory control strategies will likely continue to be most popular.

The industry itself is forecasting that volumes will be weaker for the remainder of the year, anticipating more of a global slowdown than just that being experienced in the U.S. Of late, Asian air cargo volumes have helped to boost the entire industry–European volumes being among some of the weakest. With certain parts of the global economy rebounding and the need to control inventories tightly continuing, there could be more volume than expected, keeping year-over-year growth rates flat to slightly improving over the course of the rest of 2010.

Reddaway, a subsidiary of YRC Worldwide Inc. has been named 2009 Regional Carrier of the Year by GlobalTranz, a logistics management firm specializing in carrier, supply chain, and warehouse management.

To determine rankings, GlobalTranz agents and representatives nationwide rated its suppliers based on six key criteria: on-time pickup, on-time delivery, driver courtesy, claims and damages, billing accuracy and customer service and freight quote.

“An award of this caliber is the highest compliment,” said T.J. O’Connor, president - Reddaway. “GlobalTranz is a valued partner and this honor is a direct reflection of our continued commitment to exceptional customer service each and every day.”

Founded in 2003, GlobalTranz is a leading provider of supply chain management technology, which optimizes the flow and storage of merchandise as goods and materials move within the supply chain.

This is the second time this quarter that Reddaway has received an award for exceptional performance and quality. In April, the company was honored for its outstanding safety record at the California Trucking Association.

About Reddaway
Reddaway, a YRC Worldwide subsidiary based in Clackamas, Ore., provides standard and expedited regional transportation services throughout the Western United States and British Columbia. Reddaway is a leader in next-day delivery, on-time performance and quality handling within its region. Please visit www.reddawayregional.com for more information.

About YRC Worldwide
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.

Cheap freight shipping for a satisfied shoe retailer headquartered in Kansas: With more than 400 stores, we’re the biggest specialty family footwear retailer in the Western Hemisphere. We’ve been working with YRC Logistics for a long time now. We have faith in their ability to keep our shipments moving–and we’re talking about nearly 6,500 deliveries every week.

Recently, we changed our processes. To save time and money, we consolidated two distribution centers into one. We didn’t change our requirements–we still needed to maintain window-day-delivery accuracy and keep the metrics up.

Our YRC Logistics team came through with a solution that’s flexible enough to work during our peak season and other times. They adjusted their staffing at the YRC Logistics cross-dock distribution centers to meet our changing volume and the frequency of deliveries. They worked with us every step of the way to make sure they hit our delivery metrics. They understand: Our reputation is riding on these deliveries. The shoes have to be in the stores as needed. And they are.

Holland, part of YRC,  continues to optimize its operations to help customers shave time from their supply chains, respond faster to market demands, and mitigate the risks associated with lean operations, just-in-time processes and outsourcing activities.

To help customers become more nimble, this week Holland announced the availability of:

• Next-day service from Worthington, MN to the St. Louis, MO area, and
• Two-day service from Worthington to service centers in Atlanta and Decatur, GA; Chattanooga, TN; and Birmingham, AL

The new accelerated transit times represent a reduction of one day on more than 496,000 ZIP code origin/destination points out of Worthington.

This is the second time this calendar quarter that the company has announced improved transit times.

In October, Holland introduced next-day service between Chicagoland and Springfield, MO, representing faster deliveries for more than 124,000 ZIP code lane pairs.

Customers can check service availability, transit times and schedule pickups online by visiting hollandregional.com. Holland interlines with Yellow Trucking.

OVERLAND PARK, Kan., Sept 15, 2009 /PRNewswire-FirstCall via COMTEX News Network/ — YRC Worldwide Inc. (Nasdaq: YRCW) announced today that the company has ranked 62 on the 2009 InformationWeek 500, an annual listing of the nation’s most innovative users of business technology. The 2009 InformationWeek 500 companies were revealed on September 14, 2009 at an awards ceremony held during the InformationWeek 500 Conference at the St. Regis Monarch Beach Resort in Dana Point, California.

“This award is an affirmation of our continued steps to develop and advance technology that enables our employees to excel and better service our customers,” said Mike Naatz, Chief Information Officer, YRC Worldwide. “It is a pleasure and honor to be acknowledged by InformationWeek again this year for our continual innovation in providing technology solutions for the transportation and supply chain industries.”

YRC Worldwide Technologies was recognized by InformationWeek for its new application, the Pricing and Activity Management System (PAMS). YRC Worldwide IT, Pricing and Sales teams collaborated to develop this ground-breaking new application. YRC Worldwide was determined to cut the waiting time for customers requesting a pricing bid. YRC Worldwide wanted to retire the legacy systems used by Roadway and Yellow (now YRC). With PAMS, YRC has the ability to respond to bid requests promptly, with customized pricing agreements. In its first four months of full deployment, PAMS drove a reduction of 25% in the closure rate of pricing requests. YRC now completes most simple pricing requests in a day.

“For over 20 years, the InformationWeek 500 has honored the most innovative users of business technology,” said InformationWeek Editor-in-Chief Rob Preston. “Year after year, InformationWeek 500 companies harness technology to improve efficiency, boost productivity, drive revenue, and establish a competitive advantage. We applaud this year’s winners, and the CIOs and other executives whose ingenuity and risk taking are at the center of business technology innovation.”

InformationWeek identifies and honors the nation’s most innovative users of information technology with its annual 500 listing, now in its 21st year, and also tracks the technology, strategies, investments and administrative practices of America’s best-known companies. The InformationWeek 500 rankings are unique among corporate rankings as it spotlights the power of innovation in information technology, rather than simply identifying the biggest IT spenders.

Additional details on the InformationWeek 500 can be found online at www.informationweek.com/iw500/.

Getting a freight shipping quote

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 Glen Moore, YRC Logistics, 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. The company is headquartered in Overland Park, Kan.

The Reuters and the University of Michigan Surveys of Consumers said its preliminary index of sentiment for October fell to 69.4, from September’s 73.5.

LTL freight quotes:

For the most part, the stock market has ignored some of the underlying fundamentals of the marketplace. Consumer spending accounts for more than 70% of the U.S. economy, and is truly the primary engine for sustaining economic recovery. This figure should provide a signal to analysts that the consumer is still under intense pressure. A wave of bad news from housing prices, unemployment, worsening credit conditions which tighten lending, and now slightly increasing gas prices have all worked together to affect consumer sentiment.

At the National Transportation Defense Association, we’ve relied on the brands of YRC Worldwide for years. The company’s ongoing support for our association is appreciated around the year. It really comes center stage with their annual sponsorship of the NDTA Scholarship Dinner, a fund raising event that this year attracted more than 400 registrants at our 63^rd Annual Forum and Exposition.

As part of the Forum events, it was our honor to recognize YRC Worldwide with the Distinguished Service Award for outstanding service to NDTA and our members. The award acknowledges the confidence we have in all the brands of YRC Worldwide.

“This year marks the first time we’ve been able to offer government customers our entire portfolio through a single point of contact,” said Dave Johnson, vice president of Enterprise Solutions Group and leader of the YRC Worldwide Government Solutions team. “Now that the regional companies have obtained the necessary certifications, all it takes is one call to access all our services.”

Dave and our other resources at YRC Worldwide talk about Confidence Delivered, and, after years of working together, we know it’s not just talk. The dedicated Government Solutions team at YRC Worldwide is always willing to work with us, no matter what the need, reaching across operating brands to create customized solutions with great freight shipping rates. It’s a flexible approach that benefits us, and also helps non-military government agencies.

Given the type of work we do, it’s vital that we have partners we can trust no matter how dire the circumstances. YRC Worldwide has established the industry-leading Immediate Response Center to provide critically needed transportation services–anywhere in the world–at times of crises, such as a hurricane. The IRC is capable of dispatching massive resources under intense time restraints.

We greatly appreciate all that YRC Worldwide has done for us, from supporting the next generation of transportation leaders through our NDTA Scholarship Dinner, to creating the single-contact approach that simplifies our daily work. YRC Worldwide is truly a partner we can trust.

When the last thing you need is for shipments to freeze during transit, the first place to call is one of our operating companies.

We have decades of experience and a significant investment in the equipment necessary to safely ship freezable goods, chemicals, and hazardous materials during the frigid days of winter. Shipment protection services are available through our following brands: YRC, YRC Reimer, Holland, Reddaway, Yellow Freight and New Penn.

We offer two levels of service:

• Freezable Protection utilizes special handling procedures, weather monitoring and indicators in our tracking system to handle freezable shipments.
• Insulated Cover service takes our Freezable Protection service and adds a blanket of protection with technically engineered and environmentally friendly covers for drums, pallets and totes which ensure products won’t freeze at or below 32° F/1.5° C.

Our drivers can pick up your Freezable Protection and Insulated Cover shipments Monday through Friday for all direct service points in the continental U.S. and Canada. Freezable Protection pickups also are available Monday through Friday for direct shipments to Mexico.

In addition to protecting your freezable shipments while in transit, warm rooms are available for weekend usage when needed.

YRC said today that union employees at its regional carrier, New Penn, have joined the more than 90% of its employees represented by the International Brotherhood of Teamsters in voting “yes” to ratify a previously announced modified labor agreement.

“As employee owners and stakeholders, our union workforce has made difficult decisions and demonstrated their commitment to achieving long-term success for YRC Worldwide. Revisions to the contract enable the company to strengthen its financial position,” said Mike Smid, President of YRC Inc. and Chief Operations Officer of YRC Worldwide.

The modified agreement includes a 5% incremental wage reduction and an 18 month cessation of union pension fund contributions, which will not require repayment. Related savings from the pension and wage reduction are approximately $45 million per month, and primarily began in August. Savings increase to an estimated $50 million per month in 2010.

The company and the Teamsters are addressing employee concerns in the remaining smaller bargaining units who have yet to ratify the contract changes. This represents a small percentage of the company’s unionized workforce.

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, Yellow Freight, YRC Reimer, YRC Glen Moore, YRC Logistics, 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. The company is headquartered in Overland Park, Kan.

YRC Worldwide Inc. announced today significant progress on its previously announced comprehensive plan to realize efficiencies from the YRC integration, restore financial strength, and position its operating companies for future success. The company’s progress report includes updates on two key areas of its plan.

Teamsters to vote on contract modifications

YRC Worldwide announced today that its employees represented by the International Brotherhood of Teamsters will soon vote on modifying the company’s current labor agreement. In addition to a 5% incremental wage reduction, the proposed modified agreement includes an 18 month cessation of union pension fund contributions, which will not require repayment at a later date.

The modifications would create an approximate $45 million per month savings, which begins immediately upon ratification, and grows to an approximate $50 million per month savings in 2010. In exchange, the Teamsters employees would receive options for 20 percent of the outstanding shares of YRC Worldwide stock, pending shareholder approval. This will allow them to further share in future company performance through stock price appreciation. YRC Worldwide also will appoint an additional member to its board of directors who is mutually agreed upon by the company and the negotiating committee. Additional details regarding the terms of the proposed contract modifications can be found in the current report filed today with the Securities and Exchange Commission.

Today the company announced that it finalized an amendment to its revolving credit facility with its lenders to extend the revolver reserve through July 31, 2009. During this extension, YRC Worldwide and its lenders will work collaboratively to reach agreement on options for longer-term modifications to its existing credit facilities. The revolver reserve was initially established in February 2009 to serve as a temporary reserve against the revolver capacity as the company sold real estate collateralized to the lenders.

Second quarter earnings scheduled

YRC Worldwide plans to release second quarter 2009 earnings after market close on Thursday, July 30, 2009.

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 words “will,” “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.

The actual savings from the proposed modification to the National Master Freight Agreement would be determined by actual levels of employment. A number of other IBT bargaining units and bargaining units represented by other unions are not subject to the National Master Freight Agreement. The company’s estimates of cost savings also assume that a significant number of these additional bargaining units ratify similar proposals.

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 Shipping, 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 announced today that it will begin discussions with the International Brotherhood of Teamsters (”IBT”) to seek to modify the terms of the current labor agreement for its employees covered by the National Master Freight Agreement. These discussions will address alternatives to help to reduce the company’s cost structure and preserve operating capital going forward.

Bill Zollars, Chairman, President and CEO of YRC Worldwide, said, “Entering into discussions with the Teamsters is another important step in our overall plan to strengthen our financial position during this difficult economic climate. We have made progress with various stakeholders, including our pension plan trustees and our bank lending group, to modify agreements, and we are grateful to the Teamsters for their willingness to consider further adjustments to our contracts to help reduce our cost structure and enable us to be competitive with others in our industry.”

YRC Worldwide recently announced an agreement with Central States, Southeast and Southwest Areas Pension Fund (”Central States”), the largest of the company’s IBT multi-employer defined benefit pension funds, to provide certain of the company’s real estate as collateral in lieu of pension contribution payments during the second quarter. The company also announced an amendment to its bank agreement, which provides for the immediate release of escrow funds generated from the company’s prior real estate transactions to pay down the revolving credit facility without reducing the company’s borrowing availability under the facility.

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 or Yellow Trucking 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.

On the U.S. side, the Ambassador Bridge is located beside I-75 near its intersection with the eastern terminus of I-96. The bridge crosses only 2 miles south of downtown Detroit. Since space is at a premium as a result of the developed urban and industrial setting, a discounted freight truck approaching the US side must make an abrupt, tight 180 degree turn to enter primary on the U.S. side. Freight trucks on the Canadian side have more room for a straightforward approach. The bridge entrance and exit on the Canadian side is in a less industrial setting next to the University of Windsor. Truck traffic exits onto Highway 3, which after 5-1/2 miles intersects Highway 401, a major route that heads northeast across Ontario.

The bridge and its collateral facilities are privately owned and operated by the entity known as the Ambassador Bridge. The mission of the Ambassador Bridge is to operate and maintain the bridge and collect tolls on both sides of the crossing. The Ambassador Bridge’s US owner is the Detroit International Bridge Company and its Canadian subsidiary is The Canadian Transit Company. Ambassador Bridge owns the facilities that house Canada Customs and Immigration while GSA owns the US Customs facility. Since Ambassador Bridge owns and operates the property that the tollbooths are on, the data collectors who were located by the toll collection booth in either country had to have permission from them, which was verbal.

The US and Canadian Customs mission is to protect their border. They operate the facilities and control the property where their Customs facilities are located. Data collectors who were operating beside the primary Customs checkpoint in either country had to have permission to be on the property operated by the Customs organization of that country. So even though that data collector was only a very short distance from the collector at the tollbooth, the approval to operate at that spot came from a different organization.

Model validation involves testing the model’s capability to predict current travel demand so that it can be used effectively to predict future travel demand. Freight shipping travel models need to be able to replicate observed conditions within a reasonable range before they can be used to produce future year forecasts. As metropolitan areas continue to refine and improve their travel demand forecasting processes, the credibility of the process with decision makers will depend largely on the ability of analysts to properly validate the procedures and models used including discount freight shipping. The travel demand models have become more complex, resulting in complex procedures needed to validate them. Often there are tradeoffs between increasing confidence in the level of accuracy of the models and the cost of data collection and effort required to validate them. Tests used to evaluate the reliability of models can range from a simple assessment of the reasonableness of model outputs to sophisticated statistical techniques.

Key data components include annual productions by economic sector, employment by industry sectors, and in?migration and payroll by the economic sector. Besides economic production and industry employment data, this data also includes these sectors.
Production Allocations and Interactions: The production allocations and interactions module determines the distribution of production activity among zones and the consumption of space by these production activities in each zone. The module also reflects the flows of goods and services and labor from production locations to consumption locations, as well as the exchange prices for goods and services, labor, and space each year.
Household Allocations: Household allocations to zones reflect the same distributions as the allocations from the previous year. The labor flows originating from these households are allocated to the production locations based on the production allocations to zones determined from the production allocations and interactions data. Similarly, distribution of freight companies demand associated with household consumption activity is modeled by allocating the flows of commodities consumed by the households to zones based on zonal production allocations.
Land Development: The land development data estimates the year-to-year changes in available space in each zone in the region. The primary task of the land development data is to adjust the quantity of space over time in the region in response to changes in price. Other data in the model determine a price for each category of space in each zone using a highly dis-aggregate process, based on the fixed supply of space available in each zone for that particular year. The data uses the zoning patterns and does not forecast how the political process can change zoning patterns. This data does not include freight transportation.

An intermodal terminal or port can be defined as a location for the transfer of freight from one transport mode to another.  Such modes as between a ship transferring freight to Yellow Trucking or a truckload carrier transferring freight to an airline. The coordination of resources to achieve intermodal efficiency is a challenging task that involves government, the private sector, and various other groups. Intermodal terminals serve as principal interchange points for both international and domestic freight movements.

The data collection efforts at intermodal terminals are always a challenge owing to the enormous time and costs associated. In addition, these data are specific to each type of intermodal terminal and cannot be transferred or borrowed. Specific models also are built based on the capacity and volume of traffic being handled at these facilities.