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YRC combines long-haul, regional operations in Michigan

Less-than-truckload (LTL) carrier YRC Worldwide, Inc. (NASDAQ:YRCW) proposed October 1 to consolidate two northern Michigan terminals operated by its YRC Freight long-haul unit into one terminal in the area that is operated by its Holland regional unit.

The proposal calls for YRC Freight locations in Alpena and Cadillac to be merged into a Holland facility in Gaylord, according to a “Change of Operations” document obtained from labor sources. Being a union carrier, YRC is required to submit its proposal to the International Brotherhood of Teamsters union, which represents the company’s drivers and dockworkers. The Teamsters can provide input. However, it cannot stop YRC from implementing the change.

The announcement is the first move by YRC to streamline its network since it entered into a $600 million term loan agreement to to refinance its debt. The new financing deal, which is designed to provide additional liquidity and comes with less restrictive financial covenants, is a key part of YRC’s multi-year plan to return to sustained profitability, something that has been elusive for years and that has continued to be a problem through the first half of 2019.

YRC Spokesman Mike Kelley declined comment on the proposal. It is not the first time the company has made a move like this, according to a union source.

YRC has embarked on a “network optimization” program that CEO Darren D. Hawkins has said will yield $80 million in margin improvements during 2020 through improved operating efficiencies. As part of the program, YRC has begun to close service centers – most of which it doesn’t operate from – as part of a plan to shutter 25 centers by the end of 2019. The moves will generate $25 million in cash proceeds, YRC has said.

The company has also shut the New Lebanon, Pennsylvania headquarters of regional unit New Penn Motor Express and consolidated its corporate functions at YRC’s headquarters in Overland Park, Kansas. That will save the company about $25 million a year, it said.


  1. ThoMas D. Shuster

    That saying “A man has to do what a man has to do.” Just seems to fit here. Tweeking a huge company is a necessity. If you don’t do some triming your going down in the dog eat dog business off trucking.

  2. allen l ruberstell

    well let’s see here. YRC enters into a $600,000,000 term loan !!! hmmmmmmm, well if they really want to cut the loan and pay it maybe they should start at the TOP, you the CEO’S and all the rest they are paying multi-million dollars to do NOTHING but screw up the entire corporation and to run it straight into the ground like they have been trying to do for a very long time. Just ask the real workforce behind the company, you know the ones that really make the company the money !!!! the drivers, dock workers, office personnel, etc, etc, etc…………… CUT THE FAT OFF THE TOP !!!! not by screwing the little guy/gals…..

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.