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2011 Top 100 For-Hire

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A Word From the Publisher he trucking industry has been staring to 10, Sidney Brown, chief executive officer of NFI down a driver shortage for years. Now, Industries, said 20% of the company’s current truck with demand for freight hauling increas- routes would require drivers to lay over. ing and many of the nation’s largest for- “That means we will need more drivers and equip- hire carriers unable or unwilling to ment to do the same amount of work,” Brown said. Texpand their fleets, we may be approaching a real “This will force rates up and exacerbate the driver turning point in how shippers and carriers respond to shortage issue.” a potentially crippling capacity crunch. William Ward, president of Ward Trucking, said the As Daniel P. Bearth, our senior features editor, re- change would necessitate a change in the way freight ports in the 2011 edition of Transport Topics’ Top 100 is moved to include more relays of loads on many line- For-Hire Carriers, it’s clear that truck- haul routes. ing executives believe that freight rates “We need more flexibility rather than must rise so they can offer higher pay less, in terms of picking up and deliv- to their existing drivers and entice new ering freight,” said Tonn Ostergard, people to become truck drivers. president of Crete Carriers Corp. “We “In the long run, driver wages need can’t afford to lose another hour of to increase,” said Steve O’Kane, pres- daily driving hours.” ident of A. Duie Pyle Inc., a regional Another consequence of this new less-than-truckload carrier that oper- business environment is likely to be ates in the Northeast and Mid-At- additional consolidation of trucking lantic states. companies. Many carriers are stepping up efforts Much has already changed in the 30 to recruit and train new drivers, with years since the Motor Carrier Act of both A. Duie Pyle and Con-way 1980 substantially deregulated the Freight targeting workers already em- trucking industry. ployed on the loading dock or in ware- Almost two-thirds of the 100 largest houses. motor carriers in 1980 have closed But higher pay and more intense re- Howard Abramson their doors and many of the remaining cruiting isn’t all that will be required fleets were acquired or merged with to address the driver shortage. other companies. As O’Kane and other trucking executives explained, Survivors are always those companies that adapt carriers need to make the job of driving trucks more most successfully to changing circumstances. Par- appealing, and that can only be done with help from cel carrier UPS Inc. was the largest carrier in 1980 shippers and receivers. and it ranks No. 1 on the Top 100 For-Hire Carri- “Shippers have the ability to make their freight ers list today. more driver friendly,” said Mark Rourke, president Trucking is a resilient and entrepreneurial industry. of truckload services for Schneider National Inc. And in this year’s Top 100 For-Hire Carriers list, no “Pickup and delivery flexibility is a key area that doubt you will find the companies that will turn could be used to help maximize driver hours and today’s business challenges into tomorrow’s success. provide more capacity.” Proposed changes in federal regulations that limit the number of hours a driver can spend behind the wheel each day will play a critical role in shaping the new operating environment for freight haulers. If the maximum drive time is reduced from 11 hours ACKNOWLEDGMENTS AND SOURCES The 2011 Transport Topics 100 is a project of TRANSPORT TOPICS Publishing Group and features data compiled from public and private for-hire trucking companies. In some cases, revenue estimates were used to determine sector rankings. Senior Features Writer Daniel P. Bearth coordinated the project with assistance from Karen Villar. Cover design is by George Dively, director of art and production. The design is by Patrick Donlon, assistant director of art and production. RANK RANK REVENUE % NET INCOME % OPERATING UNITS 2010 2009 COMPANY (000) CHANGE (000) CHANGE EMPLOYEES EQUIPMENT (DESCRIPTION OF SERVICES) 1 UPS Inc. 49,600,000 9.5 3,500,000 62.8 400,600 99,800 company-owned tractors UPS Package Operations (air and ground package delivery) 1 Atlanta 45,297,000 2,152,000 408,000 straight trucks, package cars, UPS Supply Chain Solutions (transportation management, air, ocean, rail and NYSE: UPS vans and motorcycles ground freight forwarding, expedited, customs brokerage, supply chain design, Scott Davis, Chairman and CEO 21,090 trailers contract carriage, service parts distribution and repair, returns management, David Abney, COO 216 aircraft assembly and distribution, vehicle routing, dispatch and tracking systems) Kurt Kuehn, CFO UPS Freight (regional and interregional LTL, truckload, dedicated contract carriage, refrigerated intermodal) www.ups.com UPS Logistics Technologies (information technology) UPS Capital Corp. (equipment leasing, trade finance, freight payment and insurance) UPS Mail Innovations (mail processing) The UPS Store (franchiser of retail shipping, postal and business service stores) UPS Consulting (management consulting) 2 FedEx Corp.1 38,180,000 15.1 1,125,000 NA 285,000 22,803 company-owned tractors FedEx Express, FedEx Trade Networks, FedEx SupplyChain (domestic and 2 Memphis, Tenn. 33,158,000 (111,000) 280,000 52,353 straight trucks international air and ground package and freight delivery, air and ocean freight NYSE: FDX 80,281 trailers forwarding, customs brokerage, transportation management, order fulfillment, Frederick Smith, Chairman and CEO 697 aircraft warehousing and distribution, service parts, returned goods management, supply Alan Graf Jr., CFO chain consulting) FedEx Ground, FedEx Home Delivery, FedEx SmartPost (commercial and www.fedex.com residential ground package delivery and consolidation) FedEx Freight, FedEx Custom Critical (regional and national LTL, expedited) FedEx Services, FedEx Office, FedEx Customer Information Services (sales and marketing, information technology support, document and business services, customer service, billings and collections) 6 Con-way Inc. 4,952,000 16.0 78,200 NA 27,900 11,700 company-owned tractors Con-way Freight (regional and interregional LTL) 3 Ann Arbor, Mich. 4,269,239 (110,936) 27,400 150 lease-to-own tractors Con-way Truckload (dry van TL) NYSE: CNW 102 owner-operator tractors Con-way Multimodal (freight brokerage, intermodal) Douglas Stotlar, President and CEO 105 straight trucks and vans Menlo Worldwide Logistics (supply chain consulting, transportation management, Stephen Bruffett, CFO 34,400 trailers dedicated contract carriage, warehousing and distribution, freight brokerage) Road Systems (trailer manufacturing) www.con-way.com 4 YRC Worldwide 4,334,640 -11.0 (230,600) NA 32,000 16,152 company-owned tractors YRC Inc. (national and international LTL and TL, expedited, cross-border 4 Overland Park, Kan. 5,282,778 (622,019) 36,000 52,098 trailers services) Nasdaq: YRCW YRC Reimer (regional and interregional LTL in Canada, cross-border services) William Zollars, Chairman and CEO New Penn, Holland, Reddaway (regional and interregional LTL and TL, Michael Smid, COO expedited, cross-border services) William Trubeck, CFO YRC Glen Moore (dry van TL) YRC Worldwide Technologies (information technology) www.yrcw.com 1 FedEx Corp. revenue and net income are for 12 months ended Feb. 28, 2011, and Feb. 28, 2010. 4 – 2011 Transport Topics Top 100 For-Hire Carriers / This Transport Topics 100 PDF is sponsored by R.L. Polk & Co. and TMW RANK RANK REVENUE % NET INCOME % OPERATING UNITS 2010 2009 COMPANY (000) CHANGE (000) CHANGE EMPLOYEES EQUIPMENT (DESCRIPTION OF SERVICES) 8 J.B. Hunt Transport Services 3,793,485 18.4 199,617 46.3 15,223 8,548 company-owned tractors J.B. Hunt Intermodal (intermodal and drayage) 5 Lowell, Ark. 3,203,321 136,435 14,171 995 owner-operator tractors J.B. Hunt Truck (dry van and refrigerated TL and LTL, expedited) Nasdaq: JBHT 20,803 trailers J.B. Hunt Dedicated Contract Services (dedicated contract carriage, Kirk Thompson, Chairman 45,666 containers commercial and residential delivery) John Roberts, President and CEO J.B. Hunt Integrated Capacity Solutions (freight brokerage) Craig Harper, COO David Mee, CFO www.jbhunt.com 9 Schneider National Inc. 3,100,000 6.9 NA N.A 18,395 9,849 company-owned tractors Schneider National Truckload Services (dry van TL, expedited, dedicated 6 Green Bay, Wis. 2,900,000 NA 18,468 1,785 owner-operator tractors contract carriage) Chris Lofgren, President and CEO 32,608 trailers Schneider National Bulk Carriers (liquid bulk, chemical and petroleum tank) Lori Lutey, CFO 12,600 containers Schneider Intermodal Services (intermodal) Schneider Logistics Services (supply chain consulting, transportation www.schneider.com management, freight brokerage, air and ocean freight forwarding, transloading and intermodal drayage, warehousing and distribution) Schneider Finance (equipment leasing) 10 Swift Transportation 2,929,723 13.9 (125,413) NA 18,000 12,200 company-owned tractors Swift Transportation (dry van and refrigerated TL, flatbed and heavy 7 Phoenix 2,571,353 (435,645) 15,500 3,900 owner-operator tractors specialized, dedicated contract carriage, intermodal, cross-border NYSE: SWFT 48,992 trailers services, drayage, freight brokerage) Jerry Moyes, Chairman and CEO 4,800 containers Richard Stocking, COO Virginia Henkels, CFO www.swifttrans.com 11 Landstar System 2,400,170 19.5 87,514 25.1 1,353 8,452 owner-operator tractors Landstar Transportation Logistics (dry van and refrigerated TL and LTL, 8 Jacksonville, Fla. 2,008,796 69,950 1,374 13,084 trailers flatbed, heavy specialized, intermodal, dry bulk, dedicated contract Nasdaq: LSTR carriage,expedited, air and ocean freight forwarding, customs brokerage, Henry Gerkens, Chairman and CEO project cargo, warehousing, information technology) Patrick O’Malley, COO Signature Insurance Co. (insurance, claims management) James Gattoni, CFO www.landstar.com 7 Penske Logistics 2,400,000 0.5 NA NA 9,000 2,115 company-owned tractors Penske Logistics (supply chain consulting, transportation management, 9 Reading, Pa.
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