LTL TRUCKING PRICE WARS - AN ADVANTAGE FOR SHIPPERS

MILE MARKER #66

Shippers are taking advantage of the competitiveness of trucking discounts, some reaching the 90% to 95% range. These LTL ( Less-Than-a-Truckload ) heavy discounts are a result of a downward economy, and competitors are trying to make it difficult for their rival YRC to survive during their Yellow/Roadway merger in a so-called recession. These competitors are looking to pounce on them, or as some articles call it, "Put a stake in them " to acquire YRC's market share.

Through this process, the shippers are reaping the rewards and getting their product moved cheaply. Unfortunately, for YRC's competitors like Conway, FedEx Freight, UPS Freight, Old Dominion, and Estes, YRC didn't go down like they had hoped, and are now in a financial bind themselves. With freight tonnage down and the deep discounts they are providing, these competitors are finding out that they are now struggling, coming in to the slow period of shipping.

**** As a shipper, listening to YRC's competitor's sales tactics, you must look at the big picture. It's not going to happen, but lets say YRC does close, the discounted shipping rates will immediately rise to today's standards. NO more price wars. You would think as a shipper, they would give YRC all the freight they can to keep the cheap rates going. YRC's competitors have nothing new to offer to shippers,they just badmouth and spread rumors about YRC to try and get freight in these difficult times in trucking, which in return, are actually trying to keep themselves afloat.****

Whether your a big fan of the Union or not, if YRC ever did go down, it wouldn't be a good thing for the economy anyway. A lot of good paying jobs would be lost, and as a reminder, the middle class drives the economy. Just like GM, people piss and moan about the wages these workers receive, thinking that that is the reason cars are so expensive. What's the problem with the little people in this world making a decent living? So, if you knock their wages down, which by the way is bad for the economy, do you think these cars are going to be drastically cheaper? Afraid not. The fat cats up top will absorb the laborer's cuts, and fill their pockets even more. Cars will still cost what they do today. Don't kid yourself.

As for trucking, YRC's competitors pipe crap up their driver's rear-ends, and surprisingly, the drivers believe them. They don't understand that the Unionized YRC family sets the standard for wages for these other driving jobs. Just a little fact, if YRC does go under, the driver's wages will too. These competitors are already taking away a lot of these driver's benefits. Why? Because they can. These drivers have no representation, no driver's rights.

Be careful what you wish for. Soon, this will be a nation of $10.00 jobs. That will be something our kids can look forward to. God help them!

Where's is my 40 million dollar bonus for providing you this educational information.