Skip to content
Search AI Powered

Latest Stories

newsworthy

Roadrunner sells off intermodal business unit for $51.25 million

Sale to competitor Universal Logistics is latest move to slash size of truckload division.

Hobbled transportation and logistics provider Roadrunner Transportation Systems Inc. has made its latest move to return to profitability, announcing today that it has sold its intermodal business unit to a competitor, Universal Logistics Holdings Inc., for $51.25 million.

Roadrunner's intermodal services line provides drayage and chassis management services to transport freight between ocean ports, rail ramps, and shipping docks through 23 terminals nationwide. The business had revenue of approximately $125 million for the trailing 12 months ended September 30, and was part of the company's truckload segment.


The maneuver is the second effort by the Downers Grove, Illinois-based company to slash the size of its truckload division in recent months. In October, Roadrunner announced plans to downsize its unprofitable dry van business line by year-end 2019, reducing the company's dry van tractor and trailer fleets by over 50% and laying off some 10% of the company's total workforce.

Those two moves follow management stumbles at the company including being compelled in 2018 to restate its unrealistic 2016 earnings report, then admitting that computer hackers had stolen data from company accounts, also in 2018.

Following the sale of its intermodal unit, Roadrunner will now use the proceeds to repay finance leases and debt associated with Roadrunner Intermodal Services and to pay transaction costs, with the remaining amount available for general corporate purposes.

"The divestiture of Roadrunner Intermodal Services is another step forward in our strategy to simplify our portfolio by focusing on our value-added logistics and asset-light LTL segments to improve our operating performance and returns on invested capital," Roadrunner CEO Curt Stoelting said in a release. "Universal Logistics is an established transportation and logistics company that shares our dedication to customer service and is a good fit for the intermodal services business."

In a statement, Warren, Michigan-based Universal Logistics said the deal will push its own intermodal drayage business up to an estimated fleet of over 2,500 tractors, transacting business from 49 U.S. terminals and producing future annual revenues in excess of $500 million. Those figures do not include the impact of any potential "synergies," a common business term for the layoffs that may occur after company mergers, Universal Logistics said.

"The acquisition of Roadrunner Intermodal is extremely exciting for us. Roadrunner Intermodal has been a strong competitor over the years, servicing several of the same markets as Universal," Universal Logistics CEO Jeff Rogers said in a statement. "We see a great deal of opportunity to integrate these two best-in-class drayage providers, while adding a significant amount of additional capacity to our network."

 

The Latest

More Stories

legal scales and gavel

FMCSA rule would require greater broker transparency

A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.

According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.

Keep ReadingShow less

Featured

chart of trucking conditions

FTR: Trucking sector outlook is bright for a two-year horizon

The trucking freight market is still on course to rebound from a two-year recession despite stumbling in September, according to the latest assessment by transportation industry analysis group FTR.

Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.

Keep ReadingShow less
chart of robot use in factories by country

Global robot density in factories has doubled in 7 years

Global robot density in factories has doubled in seven years, according to the “World Robotics 2024 report,” presented by the International Federation of Robotics (IFR).

Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.

Keep ReadingShow less
person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less
Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less