Freightquote customers enjoy the benefits of the company’s established relationships with thousands of carriers. By comparing rates and delivery options across so many reputable carriers, Freightquote’s customers are assured of the best freight pricing in the marketplace. The current economic downturn has resulted in its fair share of industry victims. A prominent freight industry executive recently alleged that some competitors were engaging in offensive price cuts aimed at weakening the already struggling YRC Worldwide.
David Congdon, chief executive of Old Dominion Freight Line, called the recent industry crisis “the worst pricing environment we’ve ever experienced”, blaming the general economic downturn and trucking overcapacity.
He also said that some of the pricing trends were likely deliberate moves by other carriers to undercut YRC. YRC is an industry leader in the LTL shipping market but has experienced financial troubles of late.
Some industry analysts believe that a major bankruptcy in the LTL sector could go a long way in resolving the overcapacity problem. Congdon believes that some recent competitive pricing actions were aimed at pusing YRC towards bankruptcy. He noted that prices in some cases cut “below variable costs,” with YRC “reacting” These pricing practices are unsustainable in the long-run, according to Congdon.
Old Dominion has defended some volume by matching price cuts but hasn’t used price cuts offensively. “We never intentionally go out and cut someone else’s price to gain volume,” Congdon said.
Old Dominion though has bought or is in the process of buying $90 million in terminals and other real estate this year—most of it from YRC. This positions Old Dominion for long-term growth or short-term opportunities in the event of a YRC bankruptcy.
While Freightquote’s customers continue to benefit from the pricing wars among freight carriers, they can lean on Freightquote’s experience and relationships in the industry to make sure they are well-positioned for any major shake-ups in the LTL sector. By using Freightquote, LTL shippers get the best rates from the nation’s best carriers – and don’t have to keep up with freight industry news to do so.