Yellow’s second-quarter volume declines again during network overhaul

In May, the volume of Yellow Corp., a carrier with less than truck load, continued to decline. After the market closed on Thursday, the company reported a 17.2% year-on-year decrease in tonnage for the month. This follows a similar decline in April. This reduction is part of a plan to eliminate unwanted cargo from the network and increase yields and margins.

Yellows (NASDAQ: YELL) In the first quarter earnings announcement, management said the tonnage decline peaked in February, down 27% year-on-year. It decreased by 18% in March, and the preliminary evaluation in April required a decrease of 14% to 15%. April was finally worse than expected, but cargo declines still seem to be stable, despite significant declines.

“The quarterly operational indicators for the second quarter are in line with our expectations as we strive to move optimal levels of cargo through the network,” CEO Darren Hawkins said in a press release. I am. “With continued stable demand for LTL capacity and a consistently favorable pricing environment, our financial results for the first two months of the quarter outweighed the continuous improvements we have made since the first quarter.”

The company Terminal consolidation and closure in the western network, Two additional phases are planned by the end of the year. Yellow has already integrated four LTL operators and their logistics units under the same roof.

So far, second-quarter shipments have decreased by 15.3% year-on-year and weight per shipment has decreased by 2.2%. However, revenue per Hundredweight, or yield, has increased by nearly 30%. The rise in fuel surcharges (up 70% year-on-year in the second quarter and an average of 27% higher than in the first quarter) has provided a significant boost to yields.

“Our plan is to grow our business, and we are confident that the transition to One Yellow will lead to long-term tonnage growth,” Hawkins continues. “The transformation of the One Yellow network is expected to enhance customer service, reduce efficiency and costs, and increase network capacity.”

Overall, Yellow’s revenue could have increased at double-digit lower rates in April and May compared to last year. This is modest compared to other carriers with revenue growth of over 20%. This means that the increase in tonnage is limited to the low to medium single digits and at the same time increases by about 20%.

Table: Company report

Old minion (NASDAQ: ODFL). Report on Monday Following a 29.1% increase in April, daily revenue in May increased 26% year-on-year. ArcBest (NASDAQ: ARCB). I saw an increase in profits 24% each month.

Asset Light LTL Provider ForwardAir (NASDAQ: FWRD) Said on Wednesday that revenue per shipment increased by 40.7% in the first two months of the quarter compared to the same period in 2021. This increase is primarily related to yield per shipment and a 15.4% increase in weight.The company has been Actively remove lightweight, low-margin cargo From that network, we support heavier and more valuable shipments.

Indicators disclosed by the company show that April and May revenues were in the mid-20% year-over-year range.

In a press release, Chairman, President and CEO Tom Schmidt said: “The second quarter of the previous year was a peak period for loose, unpalletized cargo. We cleaned up our network of inefficient cargo to maintain our commitment to our customers’ most delicate cargo and tonnage the same as last year. We have made it possible to secure much higher quality cargo. “

Schmidt said he expects ForwardAir to exceed the second-quarter earnings guidance range of $ 1.59 to $ 1.63.

Chart: (Sonar: LCWTF.USA) – Final report on LTL rates. A 7-day moving average of the median daily value per 100 pounds. A 42-day delay was reported. For more information on FreightWaves SONAR, click here..

Watch: LTL mid-quarter numbers are strong

The FREIGHTWAVES TOP 500 The For-Hire Carriers list includes: Yellow Corporation (No. 5), ArcBest (No.26) and Forward air (No.37).

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