Ch13 Article 1 - As YRC Struggles, Rivals Stalk Clients By...

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Page 1 of 2 2009 Factiva, Inc. All rights reserved. As YRC Struggles, Rivals Stalk Clients By Alex Roth 885 words 6 August 2009 The Wall Street Journal J B1 English YRC Worldwide Inc., one of the nation's biggest trucking companies, has been struggling in recent months as the recession has sapped demand for freight services. Now, in an industry known for its hardball tactics, YRC's competitors are piling on, trying to pick off its clients by telling them the company's weakness could put their shipments at risk. YRC is the largest player in so-called less-than-truckload shipping, in which goods from several customers are consolidated on trucks and delivered through a nationwide series of distribution centers. The company, which operates the Yellow and Roadway trucking lines, has a 20% share of the $51 billion-a-year business. Though it says it can weather the economic storm, YRC's financial situation has become increasingly dire, amid losses stemming in part from what analysts say are underperforming acquisitions and problems integrating its national route networks. Last week it reported a 35% drop in second-quarter freight tonnage, a steeper decline than those of many rivals. The company's Teamsters union employees are scheduled to vote Thursday on whether to accept an additional 5% wage reduction, plus an 18-month suspension of any company contributions to their pension
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Ch13 Article 1 - As YRC Struggles, Rivals Stalk Clients By...

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