Freight and Distribution

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.

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.

YRC is a Kansas-based holding corporation whose largest subsidiary, Yellow Transportation, is a shipping company that offers a wide range of services for moving industrial, commercial and retail goods. Yellow Corporation also owns Yellow Technologies, which provides technology solutions and services for Yellow Corporation companies.

For Yellow Transportation, a key to making sure that businesses use its services rather than the competition’s is easy access to getting rate quotes, easily scheduling transportation services, tracking delivery and pickup times, and incorporating that information into their own company’s workflow.

An agreement early this year to offer employees a 22% stake in YRC Worldwide Inc. in exchange for wage cuts could backfire if shareholders heed the recommendations of an investor advisory firm, YRC said.

New York-based RiskMetrics Group Inc. said YRC shareholders should vote against union and nonunion option plans at a May 14 meeting because they cost shareholders too much, YRC said in a Wednesday letter to shareholders.

But if shareholders vote down the plans, the stock options employees received will end, and stock appreciation rights (SARs), granted with the options, still will be outstanding, the letter said. Most of those rights can be exercised as soon as January, and all must be settled in cash.

“If a large number of employees were to exercise their SARs during the same period, it could negatively affect our liquidity and our ability to remain in compliance with various covenants of our amended credit agreement,” said the letter, filed Wednesday with the SEC.

The pay cuts Overland Park-based YRC (previously Yellow Transportation and Roadway Express) negotiated are expected to save about $295 million to $335 million this year.

On Monday, YRCW , one of the nation’s largest trucking companies, said it expects to post a third-quarter loss from core operations as further economic weakness drags down volume and prices.

The company also expects to incur reorganization costs of about 6 cents to 8 cents per share primarily related to employee severance. It will also declare a one-time gain of 70 cents per share related to a streamlining of nonunion employees retirement plans.

Nonetheless, YRC Worldwide said it expects to be in full compliance with all terms of its credit agreement and to have borrowing capacity in excess of $600 million.

YRC said its earnings have also been impacted by investments in combining its national companies, Yellow Transportation and Roadway. In 2003, Yellow acquired Roadway Express to become Yellow Roadway. Then in 2005, Yellow roadway purchased USF and in 2006 became YRC Worldwide.

YRC Worldwide Inc. has asked its union and bank for permission to defer certain pension fund payments if it offers company real estate as collateral.

The Overland Park-based trucking company YRC, merged Yellow Transportation and Roadway Express said in a filing with the SEC that it is working to finalize discussions with the Teamsters and JP Morgan Chase Bank. YRC wants to offer its real estate as collateral in lieu of making pension fund payments for certain months, to be agreed upon. Payments can be $34 million to $45 million a month depending on employment levels, which vary by freight levels and the season.

YRC’s lenders must approve releasing specific real estate to secure deferred payments instead of selling the property.

“The company believes these alternatives can allow the company to utilize the real estate to its maximum benefit as opportunities arise,” the filing said. “These potential transactions are part of the company’s ongoing plans to address its financial performance and improve cash flow amid freight volume reductions in the recessionary environment.”

The filing said, YRC doesn’t expect the deal to affect current or future benefits of employees participating in the pension funds.

YRC, which has been struggling in a prolonged downturn, said last week that freight volume drops had accelerated during the first quarter. The company recently has been arranging sale-leasebacks of its real estate to improve cash flow.

This year, YRC expects an additional $100 million in proceeds from excess property, as well as significant sale-leaseback deals, including more than $270 million finalized or under contract.

YRC hauls about one third of all the manufactured and retail goods that crisscross the country. So it’s not a good sign that it foresees doom and gloom for the U.S. economy in the near term.  YRC Worldwide said it expects to post a third-quarter loss from core operations as further economic weakness drags down volume and prices.  YRC also expects to incur reorganization costs of about 6 to 8 cents per share primarily related to employee severance.  It will also declare a one-time gain of $0.70 / share related to a streamlining of non-union employees retirement plans.

Nonetheless, YRC Worldwide said it expects to be in full compliance with all terms of its credit agreement and to have borrowing capacity in excess of $600 million.

“The economy has softened further impacting both volume levels and pricing across our operating companies,” said chairman Bill Zollars. “After a solid second quarter, the third quarter started slowly and has progressively weakened.”YRC said its earnings have also been impacted by investments in combining its national companies, Yellow Transportation and Roadway. In 2003, Yellow acquired Roadway Express to become Yellow Roadway. Then in 2005, Yellow Roadway purchased USF and in 2006 became YRC Worldwide. “We do not see signs of the economy improving in the near term, but as we merge Yellow and Roadway, we expect operating results to show meaningful improvement,” said Zollars.

As  of Yellow Transportation and Roadway Express into YRC, we are pleased to bring you an immediate advantage with yrc.com.

Soon to be released, yrc.com will replace roadway.com and myyellow.com. If you are a registered user of the password-protected shipping tools my.roadway.com and/or myyellow.com, you will soon be able to use my.yrc.com for all of your shipping needs without registering again.

my.yrc.com delivers several benefits enabling you to:

• Manage and control multiple shipping locations
• Create custom reports for shipment claims, invoice, manifest shipment status, shipment exceptions and transit analysis
• Obtain a rate quote for multiple services in a single application (beginning spring 2009, the ability to quote truckload shipments will be included)
• Get answers from a customer service representative in real-time via online Live Chat
• Use online Bill of Lading (BOL) improvements that make BOL creation faster than ever, including the capability to use our electronic BOL for all your providers

So when does the new site become available?

For Roadway Express and my.roadway.com users, your existing my.roadway password will enable you to access my.yrc.com beginning February 2, 2009.

For Yellow Freight users, your existing myyellow user name and password will enable you to access my.yrc.com beginning March 2, 2009. Until then, please continue to use myyellow.com.

For my.reimerexpress.com users, there is no change at this time.

“With more than 160 combined years of moving big shipments and 38,000 transportation professionals, YRC represents the most collective expertise in the industry,” said Bill Zollars, chairman, president and CEO of YRC Worldwide. “More customers rely on YRC for large shipments than any other provider, and one integrated network allows for even greater coverage and shipment density. By integrating Roadway Express and Yellow Freight, we gain efficiencies and capabilities that position us to support our customers now and as the economy improves.”

“The visual identity for YRC features the highly recognized and trusted orange of Yellow Transportation and blue of Roadway Express,” said Greg Reid, executive vice president and chief marketing officer for YRC Worldwide.

“Back in the 1920s and ’30s, Yellow and Roadway established themselves as innovators, the companies that led the developing transportation industry,” said Reid. “Today, that reputation for innovative excellence and heavyweight expertise carries forward with the new brand name. YRC expresses the combined strength of Yellow and Roadway, and represents our integration of networks, services and capabilities.”

YRC Worldwide’s expectations regarding its operating income improvement due to the integration of Yellow Transportation and Roadway Transportation and the timing of achieving that improvement could differ materially from those projected in such forward looking statements based on a number of factors, including  the ability to identify and implement cost reductions in the time frame needed to achieve these expectations, the success of the company’s operating plans, the need to spend additional capital to implement cost reduction opportunities, including (without limitation) to terminate, amend or renegotiate prior contractual commitments, the accuracy of the company’s estimates of its spending requirements, the occurrence of any unanticipated acquisition opportunities, changes in the company’s strategic direction and the need to replace any unanticipated losses in capital assets.

Ready to bring your import shipping from China–and your shipping costs–down to sea level? If you are using air for reliability, then the new Expedited Ocean Service from Roadway is the perfect alternative. Faster than standard ocean, cheaper than air, with guaranteed delivery times. That’s Expedited Ocean Service, your way. At least six days faster than standard ocean transit, the new Roadway Expedited Ocean Service for less-than-container-load shipments features multiple weekly sailings from seven origin ports in China. Priority unloading of containers at U.S. ports further speeds deliveries. Import shipments are expedited through the Roadway network, with guaranteed delivery to final destination. Offered in cooperation with YRC Logistics, our Expedited Ocean Service provides date delivery certainty for LCL shipments from China to the U.S. This also effects Yellow Transportation.