Carriers and Freight

YRCW announced that joint committees representing Teamsters and YRC Worldwide management are being formed to address the company’s competitiveness and reentry into union pension plans. In addition, Teresa Ghilarducci has been nominated by the IBT to join the YRC Worldwide board of directors. Ghilarducci’s nomination is in conjunction with the most recent Memorandum of Understanding between the union and the company.

“The self-help recovery that the company and union accomplished together has stabilized the business and put us back on the path to success,” said Bill Zollars, chairman, president and CEO of YRC Worldwide. “As customers continue to increase their business with YRC Worldwide, and the company returns to profitability, these efforts will provide further momentum as we focus on additional improvements to solidify the company’s industry leading position.”

Ghilarducci is a professor of economics and the Bernard L. and Irene Schwartz Professor of Economic Policy Analysis in the Department of Economics at the New School for Social Research, New York. “We look forward to Teresa’s election and participation on the board,” said Zollars.

Upon Ghilarducci’s election, Carl W. Vogt will resign from the board as previously announced.

The company’s expectations regarding the timing and degree of market share growth are only its expectations regarding these matters. Actual timing and degree of market share growth could differ based on a number of factors including (among others) the company’s ability to persuade existing customers to increase shipments with the company and to attract new customers, and the factors that affect revenue results (including the risk factors that are from time to time included in the company’s reports filed with the SEC. Freight quote

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, YRC Logistics, New Penn, Holland and eddaway. YRC Worldwide has the largest, most comprehensive network in North America with local, regional, national and international capabilities.

Charter operators primarily operating on holiday routes also offer freight capacity, like 2nd day air freight principally to forwarders, usually through General Sales Agents (GSAs). Charter airlines generally use airports outside of London Heathrow. They are now offering the capacity to carry large quantities of cargo. In the main, General Sales Agents offer the cargo space for sale on behalf of the charter airlines. The operations are based on leisure travel and cargo has a very low priority for loading. The services are unstable as schedules are dropped or reduced in the winter months; or services are re-routed or combined depending on demand. In addition, the routes are often not main cargo routes. Generally, the charter airlines view the cargo revenue as supplementary to their main passenger business and there is therefore little long term investment in air freight.

Scheduled operators provide air cargo capacity principally in the belly holds of passenger aircraft, although some also operate freight-only aircraft like DB Schenker or BAX Global. They principally contract with freight forwarders and express operators (including integrators).

It is widely recognised that most of the worlds air cargo is carried in the bellies of passenger aircraft on scheduled services. Boeing calculates that 70% of cargo is flown in passenger aircraft while the remaining 30% is carried by all cargo aircraft.

The integrator will receive the second day air freight as a consignment into its system and depending on the final destination; fly it from its regional sub-hub or from a city’s gateway.  One of the marketing features of the integrators is that they collect the goods and deliver them to the final destination, providing all the links in the transport chain, controlling the change of mode and offering a comprehensive information flow along with the physical transport of the goods. Sophisticated information systems are required to do this. On the other hand, whether a logistics provider or a forwarder is used, there are more links in the chain. Sometimes the goods will be consigned to an airline, handled through a transit shed (which may be within the airlines control or a separate company) and if not flown from that airport, taken by an airline trucking company to fly from a gateway airport. Cargo may be moved via a cargo wholesale agent through that company’s hub before being handled through a transit shed and then carried by the airline. A large proportion of air freight is moved by the forwarder, like BAX Air Freight, through its consolidation center before being given to the handling agent and then carried by the airline.

It is known that a significant proportion of air freight is trucked from the regions into the gateway airports both by forwarders moving freight to their consolidation hubs and by airlines as a direct substitute for flying out of a regional airport.  In the case of the main European carriers, it is common for freight to be trucked directly to their main hub on the Continent where it would then be loaded for onward movement on one of their long haul flights. The reverse will happen for imports into the UK. In the same fashion, British Airways will truck cargo inwards from the Continent to help fill its long haul flights from Heathrow.

Crude oil prices fell below $70 last week on market fundamentals–rather than a volatile U.S. dollar as had been the case over the past 6 months, effecting your freight quote.

Oil markets are beginning to return to a semblance of normalcy in that they are being driven by supply and demand–rather than fluctuations in the U.S. dollar or speculatory trading. Refined gasoline supplies rose in the latest week, a sign that the consumer is still reducing travel. Further, warm weather conditions through November helped keep heating oil demand down early in the winter season. These conditions, plus a moderate drop in the U.S. dollar, helped to drop oil prices from near $80 to the $70 mark.

Looking forward, several things will dictate where oil prices go. First, the value of the dollar does have a material impact on oil prices. When the U.S. dollar is low, it takes more to purchase the same barrel of imported oil and the price per barrel rises. Second, oil prices are also being affected by the rise in consumption from emerging consumer markets like those in China and India. China will sell an additional 12 million new vehicles by the end of 2009, and that figure is expected to rise in 2010.

As a heavy winter blast set in over a majority of the country last week, it will have a draw-down effect on oil inventories–likely helping to return oil prices into the $80 range according to analysts. In fact, few expect it to remain below $70 for any extended period of time because of potential actions by OPEC and a return of increased economic activity across the globe in early 2010.

As the winter season approaches, Yellow Transportation professional driver and Road Team Captain Ron VanBibber, would like to share some safe winter driving tips. During Ron’s 22+ years of professional driving, he’s driven through all types of bad weather and on the way learned a lot about staying safe.

Tip #7 Watch for black ice

Black ice is a dangerous road condition. It is a thin layer of transparent ice that forms when the temperature is close to freezing and sometimes makes the road look slightly wet.

It is difficult to spot, so when the temperature gets close to freezing, I look for clues:

• ice build-up on my mirror arms, antenna, or the top corners of my windshield
• the spray from tires on vehicles in front of me stops

Visit past Winter safe driving tips from YRC Road Team Captain Ron VanBibber:
Tip #6: Brake and accelerate lightly
Tip #5: Hold your steering wheel firmly
Tip #4: Give yourself extra space
Tip #3: Slow down
Tip #2: Complete a Pre-Trip Inspection
Tip #1: Be Prepared

YRC Worldwide Inc. announced today that New Penn, one of its regional operating companies, will introduce a new and improved suite of guaranteed service offerings featuring superior reliability and value. All guaranteed service shipments are backed by the New Penn no-hassle guarantee to be complete and on-time or the invoice will automatically be reduced to zero dollars with no need for the customer to file a claim.

One of the primary enhancements is a new guaranteed by 9 a.m. service that provides customers with a level of morning precision that is typically found only with air freight or dedicated delivery carriers.

The other key enhancement is a new day-definite service offering that is guaranteed to deliver by 3:30 p.m., rather than end of day like most competitive offerings. By offering earlier guaranteed delivery times, customers are able to get goods into production or for sale to clients the same day the shipment arrives rather than traditional guaranteed delivery by 5 p.m. in which shipments often cannot be incorporated into the supply chain until the following day.

With the enhancements, the New Penn Guaranteed Precision^™ suite of award-winning service offerings now includes:

    --  Guaranteed Delivery By 9 a.m.
    --  Guaranteed Delivery By Noon
    --  Guaranteed Delivery By 3:30 p.m. (Day-Definite)
    --  Guaranteed Delivery Within a Single-Hour Window
    --  Guaranteed Delivery Within a Multi-Hour Window

“We are constantly reviewing our services in order to provide highly customizable solutions that meet the demands of our customers and their tightened supply chains,” said Steve Gast, president of New Penn. “We have aligned the needs of our customers with the highly reliable capabilities of the New Penn network to provide our customers with an expanded set of guaranteed service options - all backed with the no-hassle, New Penn delivery assurance guarantee.”

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 and Roadway , 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 will host a conference call for shareholders and the investment community on Thursday, July 30, beginning at 4:30pm ET, 3:30pm CT. 2nd quarter earnings will be released at approximately 4:15pm ET, 3:15pm CT, that same day.

Hosting the teleconference will be Bill Zollars, Chairman, President and CEO, and Tim Wicks, Executive Vice President and CFO.

The conference call will be available to listeners via a webcast on the YRC Worldwide Internet site yrcw.com. Recorded playback of the call will be available via yrcw.com.

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 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 43,000 people.

YRC Worldwide announced that 58 of its professional drivers will compete at the 2009 National Truck Driving Championships to be held August 18-22 at the David L. Lawrence Convention Center in Pittsburgh.

To qualify for the national championships, each driver placed first in his respective class at state competition. The drivers will compete against nearly 400 others for national titles in eight different classes of vehicles and for the overall title of National Grand Champion.

Both the state and national contests include challenging driving skills and maneuvering tests, a pre-trip inspection and a written examination covering vehicle operation and federal safety regulations. To participate in state competitions, drivers must be accident-free for one year.

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 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 Inc announced the continuation of its successful “Confidence Delivered” service program. The program is designed for new customers and existing customers expanding their business with YRC. Introduced as a demonstration of the company’s confidence in the performance of its integrated delivery network, customers signing on to the Confidence Delivered program may send five shipments anywhere within the YRC network, and if any of the five shipments is not delivered on-time, the customer receives the sixth shipment free.

The YRC network was created on March 1, when the company integrated the people, systems, facilities and equipment of the former Yellow Transportation and Roadway networks. The streamlined network is now the largest single “big shipment” network in North America with approximately 400 service locations.

“Since the integration, the new YRC network is delivering service reliability that exceeds the performance of the legacy Yellow and Roadway Express networks,” said Mike Smid, President, YRC Inc. and Chief Operations Officer, YRC Worldwide. “We anticipate that our exceptional operations will not only attract new customers but previous customers will come back to experience the improved service.”

Prospective customers interested in the Confidence Delivered program can call 1-800-610-6500 or contact their local YRC representative.

About YRC Worldwide

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 and Roadway, 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, Kan., YRC Worldwide employs approximately 49,000 people.