The Company provides nationwide transportation of diversified freight, focusing on the flatbed segment of the truckload market, and freight brokerage services.
- The Company had under- performed for the past few years, in terms of profitability and fleet utilization, compared to other truckload companies.
- Working closely with management, Fort Dearborn Partners identified key market conditions and trends affecting the Company’s and overall industry profitability, and developed plans to address the issues. Key challenges were rising fuel costs; driver turnover; increasing driver wages; outsourcing of transportation/freight functions by many customers; reduction in the number of carriers approved by key customers; increased sophistication of truck tracking and communication technology; and increasing insurance costs.
- Fort Dearborn performed detailed analysis which identified specific opportunities and assisted in the immediate implementation of several profit improvement actions including:
- Increasing linehaul rates, fuel surcharges and accessorial fees; reducing tractor maintenance costs; improving internal efficiency through order entry and billing procedural changes; reducing the number of agents and terminals; preparing fuel price hedging policies; and reducing various other operating costs.