YRC Worldwide Inc (YRCW)

[GuyBig]

Most of the purchased transportation is making good on transportation guarantees. YRCW gets paid NOTHING extra for making good on what the firm has previously promised, although the firm may be penalized further. If goods delivered via purchased transportation still arrive late, then YRCW will have failed to make good on what YRCW promised.

On the Yahoo message board, some disgruntled drivers say YRCW is purchasing transportation to avoid having YRCW trucks being inspected, since so much maintenance has been deferred and many trucks -- and trailers -- if thoroughly inspected would be taken out of service by the government because the vehicles are not roadworthy.

I believe the YRCW system being out of cycle is becoming SOP, not an exception. Apparently, having the trucks, trailers, freight, drivers, and freight handlers in the wrong places at the wrong time is somehow beneficial to the firm as a whole. That could be the case if the mismanagement enables YRCW to continue to muddle through. Muddling through would be superior to an orderly liquidation of the firm or bankruptcy.