ffe dry van divisiob......

Maybe the guys pulling FFE reefers could give them a ride.

Me thinks it's not another Arrow. However, they are selling off almost 300 tractors say they. Last hired, first fired? Not so much in a training fleet.

Info from thetrucker.com.

 

http://www.rttnews.com/Content/QuickFacts.aspx?Id=1728376&SimRec=1&Node=

 

DALLAS — Frozen Food Express Industries Inc. says it will restructure its dry freight service offerings.
The company will continue to offer dry freight options in certain lanes via the company’s temperature-controlled trailers. However, it will no longer provide dry freight services via a dedicated fleet of dry van trailers.
“Streamlining our dry freight services will greatly reduce, but not eliminate our ability to handle dry freight. We will continue to move dry freight via our temperature-controlled trailers, as it meets the needs of customers and provides a profitable contribution margin,” said President and CEO Russell Stubbs. “At the same time, these actions should greatly improve our operating efficiency and allow us to focus in other areas where we offer differentiated service. Regrettably, the economics of the transportation world do not promote maintaining equipment offerings in non-core, lower margin services. This will allow us to concentrate on core services that allow better margins due to product differentiation.”
The plan includes the sale of approximately 435 dry van trailers, which account for all of the company’s dry van trailer fleet. FFE will maintain its current fleet of approximately 3,250 leased and owned temperature-controlled trailers to provide truckload, Intermodal, and less-than-truckload services, the company said.
Additionally, FFE said it intends to reduce its tractor fleet by approximately 290 tractors during the fourth quarter as a result of the reduction in the dry van services.
Sales of these tractors and trailers are expected to be completed during the fourth quarter of 2011. The company will use the proceeds of these sales, which it anticipates to be approximately $15.5 million, to reduce debt.
In an effort to reduce overall tractor fleet age, FFE will also trade an additional 240 of its oldest tractors for new units, which will reduce the average fleet age significantly, according to a news release.
“Fleet age is one of the largest drivers of cost in our company,” said Stubbs. “The cost to maintain an aged fleet has seriously deteriorated our operating results in 2011 and had to be addressed. Due to higher maintenance costs, loss of warranty and reduced fuel efficiency, older model tractors cost considerably more to operate than newer models. Additionally, a younger fleet significantly improves driver morale and retention, which is an industry-wide challenge.”
The company stated it expects to record a one-time charge to reflect the costs related to exiting the dry van service during the fourth quarter of 2011.

http://www.thetrucker.com/News/Stor...yfreightfleetwillsellvansupgradetractors.aspx

 

Looks like my peoplenet msg

 

One foot in the grave....................

Heed the warning signs !!!!!

 

Gees. 1350 reefer trailers. Yet one foot in the grave. The other foot in the we don't want this poop paying dry freight any more.

So is this the end of Lisa and American Eagle?

Anyone with juice know?

 

Finally get someone to admit it....and a CEO at that!!!

You know how many threads I have read on here by drivers that were ticked off and leaving and/or have left because their tractor was in the shop all the time, and they can't make any money sitting in a hotel (if the company even authorized a hotel)?!?

Refreshing to see a company actually sit back and look at how they can make trucking more tolerable for the driver.

And; by the way. Other than the original posters post....I can't find anywhere "news" that those who were in the van division, have been "stranded" where they sit.
They (company) have to get those trailers and tractors to a specific location in order to sell them---it would be assinine for the company to can the driver and recover the equipment.

Most likely 'yes'....that (as well as Vernon Sawyer???) would be their van division also.

 

I think Stubby is a lil optimistic about dumping that many tractors in that short of a time short of a fire sale.