‘Yellow’ Moves Into the Black

YRC’s moves let it ‘remain a going concern,’ say financial analysts

For less-than-truckload (LTL) shippers, the ongoing travails of YRC Worldwide, the country’s largest trucking firm, have loomed large in the past year.

Now, with a debt-for-equity swap approved by the company’s shareholders last week, YRC has gained breathing room, and taken a giant step on the “roadway” back to profits and viability.

The move eliminated $550 million in debt from the giant carrier’s books, and gave 94 percent of YRC’s stock to its former bondholders, while securing long-term lending and labor deals. The company now has $343 million in liquidity, including $98 million in cash.

This is big news for YRC’s customers, and indeed for all LTL shippers, as losing the largest player in the industry, at a time when there is already upward pressure on freight rates, would have had a major reverse-domino effect, emboldening all remaining carriers to hike prices further and drop less-profitable accounts.

YRC chairman and CEO William Zollars predicted “positive cash flow” and a return to profitability as early as the second quarter of 2010, noting improved shipping trends in January and now February in a recent conference call with investment analysts. A major concern for YRC is winning back shippers lost during many months of uncertainty concerning the company’s future, reported the Journal of Commerce.

With no shortage of bad news, the good news from YRC is a solid positive for LTL shippers.



TOTALogistix
www.totalogistix.com
800-989-0054

10 + 2 = ???

New Customs regulations add up to one more reason to have an expert on your team

If you’re bringing goods into the country from overseas, you have new hoops to jump through.

They’re not brand new. The U.S. Customs and Border Protection’s (CBP’s) 10+2 plan initially was put in place January 26, 2009, and now, after a year, has become mandatory and in “full effect.” CBP has announced they intend to tighten enforcement and move toward imposing holds and exams of shipments, fines and liquidated damages for violations.

In an attempt to lessen the threat of contraband being smuggled into the country in freight shipments, CBP is requiring importers to submit Importer Security Filing (ISF) documents prior to the shipment arriving at a U.S. port. The “10+2” refers to the 10 data fields required from the shipper, including country of origin, and name and address of buyer and seller, or owner, plus two additional fields to be supplied by the shipper.

CBP will phase in enforcement, and will not impose liquidated damages in the first or second quarter of the year. Remember, though, if your shipment lacks ISF data, it is considered a “high-risk shipment” and is more likely to be held and examined by CBP.

With fines as high as $5,000 per shipment for non-compliance, getting it wrong can get expensive. Having your goods impounded and tangled up in red tape could cost you much more. The 10+2 rules add up to one more reason to make sure you have a logistics expert on your team.


TOTALogistix
www.totalogistix.com
1-800-989-0054

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