GLG News by Class 8 Trucking Experts

Jay ThompsonPresident and General ManagerTransportation Business Associates

Mexico Cross-Border Trucking - A Mexican Border Perspective

November 7, 2010

Analysis of:Mexican Officials Want U.S. Action on the Cross-border Trucking Dispute | www.truckinginfo.com

The Journal of Commerce recently quoted Luis Paz Vega who is in leadership of the North American Free Trade Agreement (NAFTA) office at the DC Mexican embassy - that redoing the Mexican Truck in the US “demonstration program” won’t work. They instead want us to adhere to NAFTA and open the border up. Here’s some thoughts...

John SchulzIndependent Analyst - Contributing EditorLogistics Management Magazine

Another Quarter, Another Quarterly Loss For YRC Worldwide

November 5, 2010

Analysis of:YRC Worldwide Achieved Significant Progress on Comprehensive Recovery Plan | finance.yahoo.com

YRC Worldwide reported a third-quarter net loss of $62 million on $1.14 billion revenue, compared with a $159 million loss on $1.2 billion revenue in the year-ago quarter. Bill Zollars, YRC's chairman, CEO and president who is leaving the company at the end of the year, said the $62 million loss meant the financially troubled LTL trucker had "achieved significant progress" despite losses in excess of $2.2 billion the last two and a-half years.

John SchulzIndependent Analyst - Contributing EditorLogistics Management Magazine

YRC Worldwide Gets More Life--Teamsters Accept More Concessions on Pay, Pensions

November 1, 2010

Analysis of:Teamsters Accept More Concessions at YRC Worldwide | www.kansascity.com

Rank-and-file Teamsters at YRC Worldwide units have accepted another round of wage and pension concessions aimed at keeping the struggling LTL carrier alive. In addition to a 15 percent wage concession through 2015, the YRC workers will continue a freeze on their pensions until mid-2011, and then get only 25 percent of previously agreed to pension contributions. The scheme is estimated to save YRC as much as $350 million annually.

John OltesvigPresidentOEM SERVCO

Defence Industry Unwinding

October 28, 2010

Analysis of:Why The Defense Industry May Never Bounce Back | blogs.forbes.com

One change in American industry may be the cyclical unwinding of the traditional industrial-military defense business. This trend could be felt not only in companies dedicated to the defense industry but also by non-defense companies who owe their very survival through the Great Recession by their diversification into the military realm.

Jay ThompsonPresident and General ManagerTransportation Business Associates

Technical Thoughts About SCR v. EGR - From A “Field Engineering” Perspective

October 24, 2010

Selective Catalyst Reduction (SCR) and Exhaust Gas Recirculation (EGR) issues are both hot these days where buyers are now voting with their purchase decisions. Truckers have to become more technically proficient - and fleet / field engineers are dealing daily with this new stuff. OEM’s have their sales pitches, but users are discussing it their own way. Investors and financiers benefit from the current dialogue, as we all are betting on the future.

Jay ThompsonPresident and General ManagerTransportation Business Associates

Navistar September 2010 Class 8 Market-Share Drops - Big-Time

October 18, 2010

Analysis of:Class 8 Truck Sales Up For Month, YTD; Class 6 Sees Continued Surge | www.truckinginfo.com

Navistar Corporation’s US Class 8 deliveries are showing about a 10-point share drop per Wards Communication numbers - both YOY and mid-YTD. This is with US Class 8 truck sales hanging in there month-to-month and sales notably better than 2009.

Jay ThompsonPresident and General ManagerTransportation Business Associates

How Much Excess Capacity Is There Really In The LTL Sector? More Than You Think…

October 12, 2010

With Truckload (TL) carriers experiencing tightening capacity, we (and especially YRC Worldwide) are still hoping for the same in the Less-Than-Truckload (LTL) sector. There are several factors that limit the real decrease in LTL capacity - and real increases in LTL profitability. They include capacity in-service: trucks, trailers and terminals sitting idle; Information Technology (IT) and other firms with “hybrid” trucking models.

John SchulzIndependent Analyst - Contributing EditorLogistics Management Magazine

Anger and Angst Drive Another Challenge to Hoffa

October 12, 2010

Analysis of:Second Teamsters Candidate to Challenge Hoffa | www.nytimes.com

Sandy Pope, a former truck driver and president of a large Teamsters Local in Long Island City, N.Y., is officially challenging incumbent Teamsters president James. P. "Jim" Hoffa in next year's election at the 1.4 million-member union. An admitted longshot, Ms. Pope is the second official challenger to Hoffa. Earlier, Fred Gegare, a Teamsters leader from Green Bay, Wis., announced he was challenging the two-term incumbent of the Teamsters.

Jay ThompsonPresident and General ManagerTransportation Business Associates

New Truck Sales Will Remain Slow With Used Doing Better - Here’s Some Why's

October 4, 2010

2010 is quickly passing with new truck sales falling short of most folks earlier predictions, but better than conservative estimates (like from us). Demand is being met by a strengthened used truck marketplace. There are several reasons including: freight demand, current fleet financials / utilization, regulations, higher new vehicle costs, tougher financing terms, available used trucks, newer truck engine product concerns, maintenance costs, truck drivers still available and other reasons.

Jay ThompsonPresident and General ManagerTransportation Business Associates

SWA v. Majors’ Bags, Booze, Blankets, Braking & Bad Cheese / Attitude Issues

October 3, 2010

Analysis of:Southwest Airlines to buy AirTran for $1.4B | www.forbes.com

Success in a service business is largely about “service.” The Southwest Airlines purchase of AirTran brings all of the competitive fare / operational insight / supplier issues as noted by our colleagues Ernie and Addison, but less-frequent fliers will get something seemingly missing at the mega carriers - a good in-flight experience in coach! A recent American Airlines weekend trip reminds me of why a growing SWA / WN will be good for the traveling public.

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