Jack Cooper logistics and Hansen

Boss forwarded this to me last weekend, and asked the same question. I spent a good bit of time digging on the net. If it's in the works, it's very hush, hush. I couldn't find anything, anywhere.

 

Would that be a good or bad thing?

 

After what happened with Allied leaving manufacturers in the lurch a few years back, I promise that automakers are not happy to see such talk. They've all tried to diversify their carrier base to avoid being held hostage by a single carrier. One of the big three is still way too dependent on Cooper (nee Allied) and the last thing they want is consolidation of two large carriers.

 

Anything is possible, but it's mostly coming from Cooper drivers. The co-owner of Hansen supposedly said it's bogus but who knows what to believe. My "opinion" is it's wishful thinking on the Cooper side because some drivers are hoping to get modern rigs and get out of a 20 year old high rail chain ex Allied rig. If they merged the networks it would make for stronger backhaul opportunities. But who really knows?

 

From what I read, none of the financial analysts believe Cooper has the cash flow to make their loan payments in 2017. So they have to do something before then to stay solvent.

 

It is stunning to me that a co with the volume of business they have & as long as they have been in business may not have cash flow to make payments.

 

You say that but ask some of the guys that have retired and just had their pensions cut by 60%.
You don't cut pensions because of contract time, you cut them because the profits and money aren't there.

 

The pensions being cut doesn't have anything to do with the Cooper being in financial straits. The pension fund is multi employer. The mismanagement of the fund is a whole different can of worms.