Conway-Freight Bought Out By XPO Logistics

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6 string rhythm's Comment
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Not sure if this has been posted yet or not. XPO acquired Conway-Freight and Conway Truckload. Also included were some other companies.

XPO Logistics Acquires Conway

Bud A.'s Comment
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From the article:

"XPO intends to increase Con-way's annual operating profit by $170 million to $210 million over the next two years through synergies and operational improvements"

Translation: Some people in the offices are going to lose their jobs.

Brett Aquila's Comment
member avatar

From the article:

All of the acquired operations - Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal - will be rebranded as XPO Logistics.

Bye bye forever Con-Way.......another "remember when" in the LTL market where they've been consolidating (dropping like flies) for two decades now.

Within 12 months of closing the acquisition, the company expects to realize cost synergies through the following actions:

  • Improving purchasing and supplier management related to facility operations, equipment, fuel, professional services, maintenance, supplies and marketing;
  • Leveraging its combined technology infrastructure to reduce Con-way's annual technology spend of $227 million, which is largely outsourced;
  • Eliminating duplicative back office and public company costs; and
  • Expanding its freight brokerage platform with the integration of Con-way's$200 million brokerage business, to share capacity and data through XPO's proprietary Freight Optimizer technology.

In the second year, the company expects additional profit improvements by:

  • Reducing its $3.6 billion combined spend on purchased transportation;
  • Using the larger flow of data from its combined $2.7 billion of freight under management to identify carriers, assign loads and fill backhauls more efficiently; and
  • Utilizing its extensive intermodal network to improve LTL line-haul efficiency.

Now for those who wonder what the profit margins look like in trucking you'll see it here on this chart. This is the revenues, net income (profits), and profit margin for Con-Way. The giant blue towers are the revenues and the almost imperceptible red and orange lines running barely above zero are the net income (profits) and profit margin. And this is a company that has existed for 86 years. It's not like they're new to the game and trying to figure things out. So for those of you thinking about leasing or buying a truck because you're being told how much more money you'll make, remember this chart.

chart?cht=bvg&chs=323x200&chbh=18&chdlp=

LTL:

Less Than Truckload

Refers to carriers that make a lot of smaller pickups and deliveries for multiple customers as opposed to hauling one big load of freight for one customer. This type of hauling is normally done by companies with terminals scattered throughout the country where freight is sorted before being moved on to its destination.

LTL carriers include:

  • FedEx Freight
  • Con-way
  • YRC Freight
  • UPS
  • Old Dominion
  • Estes
  • Yellow-Roadway
  • ABF Freight
  • R+L Carrier

Intermodal:

Transporting freight using two or more transportation modes. An example would be freight that is moved by truck from the shipper's dock to the rail yard, then placed on a train to the next rail yard, and finally returned to a truck for delivery to the receiving customer.

In trucking when you hear someone refer to an intermodal job they're normally talking about hauling shipping containers to and from the shipyards and railyards.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OWI:

Operating While Intoxicated

Miss Miyoshi's Comment
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Frightening. I was considering Con-Way, as I see their trucks regularly where I live. Hopefully Prime will remain solvant and prosperous for a while.

Jetguy's Comment
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Frightening. I was considering Con-Way, as I see their trucks regularly where I live. Hopefully Prime will remain solvant and prosperous for a while.

I don't think you have to be concerned about Prime remaining solvent. Clearly the owner Robert E Low wants to grow the company. I trained there in June 2015, Springfield Mo. In talking to the Training Director, Stan, he said they hired over 1800 people (I think 1893) in 2014. There were over 90 people in my class. I counted 80 computers and chairs, with people also sitting in the aisle.

Miss Miyoshi's Comment
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That's a LOT of people in the class. How did they accommodate the students without seats/computers? I have read their instruction once in truck is one on one. Is this still true? Too big can be a bad thing sometimes.

Jetguy's Comment
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That's a LOT of people in the class. How did they accommodate the students without seats/computers? I have read their instruction once in truck is one on one. Is this still true? Too big can be a bad thing sometimes.

This is orientation, the first 4 days at Prime. They divide the group up and people go to different rooms doing different things. There wasn't any problem with shortage of computers. We had the whole group in this room the first thing in the morning to take attendance and get other instructions.

Also the group becomes slimmed down. We would see people standing at the shuttle with their luggage, several times during the day, getting sent home for many different reasons.

Actually I was very impressed with how it was organized. Before I got to Prime, I had already passed the written test with endorsements. I passed and did everything the fIrst day- intervew, short lifting/physical test, DOT physical, drug test. I got the DOT medical card from Prime the second day and took shuttle to DMV and paid for and got my CDL permit. I'm not bragging. If a person is prepared, things can go real quick. And yes I'll put in a plug for Brett's High Road Training. I took it.

Yes the PSD- Prime student driver training is one-on-one.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

DOT:

Department Of Transportation

A department of the federal executive branch responsible for the national highways and for railroad and airline safety. It also manages Amtrak, the national railroad system, and the Coast Guard.

State and Federal DOT Officers are responsible for commercial vehicle enforcement. "The truck police" you could call them.

Dm:

Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.

DMV:

Department of Motor Vehicles, Bureau of Motor Vehicles

The state agency that handles everything related to your driver's licences, including testing, issuance, transfers, and revocation.

PSD:

Prime Student Driver

Prime Inc has a CDL training program and the first phase is referred to as PSD. You'll get your permit and then 10,000 miles of on the road instruction.

The following is from Prime's website:

Prime’s PSD begins with you obtaining your CDL permit. Then you’ll go on the road with a certified CDL instructor for no less than 75 hours of one-on-one behind the wheel training. After training, you’ll return to Prime’s corporate headquarters in Springfield, Missouri, for final CDL state testing and your CDL license.

Obtain CDL Permit / 4 Days

  • Enter program, study and test for Missouri CDL permit.
  • Start driving/training at Prime Training Center in Springfield, Missouri.
  • Work toward 40,000 training dispatched miles (minimum) with food allowance while without CDL (Food allowance is paid back with future earnings).

On-the-Road Instruction / 10,000 Miles

  • Train with experienced certified CDL instructor for 3-4 weeks in a real world environment.
  • Get 75 hours of behind-the-wheel time with one-on-one student/instructor ratio.
  • Earn 10,000 miles toward total 40,000 miles needed.
Robert B. (The Dragon) ye's Comment
member avatar

Actually, it isn't entirely a done deal. The sale went through without permission from the board of directors and XPO offered below the stock price for the company which caused immediate legal action. It might still happen but apparently there's some litigation to be settled first.

Miss Miyoshi's Comment
member avatar

Ah, gotcha. I'm definitely reading up on the training materials here. I've heard so much about how it helps people that it's silly not to avail oneself of the resources.

When you say you passed the written test with endorsements, was that at your local DMV?

Dm:

Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.

DMV:

Department of Motor Vehicles, Bureau of Motor Vehicles

The state agency that handles everything related to your driver's licences, including testing, issuance, transfers, and revocation.

Jetguy's Comment
member avatar

Ah, gotcha. I'm definitely reading up on the training materials here. I've heard so much about how it helps people that it's silly not to avail oneself of the resources.

When you say you passed the written test with endorsements, was that at your local DMV?

Yes local DMV. I'm in Missouri.

Dm:

Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.

DMV:

Department of Motor Vehicles, Bureau of Motor Vehicles

The state agency that handles everything related to your driver's licences, including testing, issuance, transfers, and revocation.

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