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TRUCKING INDUSTRY CRISIS * USA & Canada - YRC Bankruptcy Risk High, says Analyst
Overland Park,Kansas,USA -Traffic World, by John Gallagher -26 Jan 2009: -- Details of the waiver conditions YRC Worldwide obtained from its bank lenders Jan. 16 reveal that the nation's largest trucking company may not have improved its chances of avoiding bankruptcy, according to Wall Street analyst Ed Wolfe of Wolfe Research... YRC's banks provided the waivers until mid-February to allow sufficient time to amend its credit facilities and renew asset backed securitization without a delay in reporting the company's 2008 results... "We believe the restrictive conditions in these waivers likely shows how little hand YRCW has left in these negotiations and we continue to believe a high risk of some form of bankruptcy remains"...
* Canada - Carriers cutting capacity; Pessimism over '09 worsens
Toronto,ONT,CAN -Today's Trucking -26 Jan 2009: -- Going on at least 18 months now, the Canadian freight recession has gloomed the economic outlook for many Ontario fleets. On the bright side, however, fleets are responding to the wilting demand by cutting capacity rather by squeezing the market further with cheap trucking... So says the 1Q09 Business Pulse e-Survey conducted by the Ontario Trucking Association earlier this month, which shows a marked deterioration in the provincial outlook for the next three to six months... OTA President David Bradley, points out that, "most trucking companies, and certainly those who will survive this difficult period, are taking the actions they can and structuring themselves to weather this storm and to come out of it when things do start to recover stronger than before"... Of the 82 trucking companies that responded to the survey, half said they were pessimistic about overall industry prospects over the next three months, up from 34 percent in the 4Q08 survey. And percentage of trucking companies that are optimistic about the coming quarter dropped to 17 percent, from 24 percent... (Photo: Truckers who thought the clouds would part in the first half of 2009 will have to wait longer yet)Labels: trucking industry crisis
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