Hurley Dumps LTL Unit for Bigger TL Operation

For more than two decades, William R. Ewing seemed to have made the right choice. What began as a truckload and newspaper distribution operation, called Hurley Transportation Cos. in Phoenix, grew into the largest less-than-truckload carrier in Arizona.

“I believe we were the dominant, top intrastate carrier in the state with regards to the LTL business,” Ewing said. “We had the largest market share, plus the best reputation.”

But last year, Ewing abruptly changed course. He accepted an offer from a major competitor, Phoenix-based Jaguar Fast Freight, to purchase Hurley’s entire LTL operation.

Now, Ewing, the chief executive officer and owner of Hurley, is focused solely on building the company’s truckload operation.

While he acknowledged it was hard letting go of the LTL business, Ewing said he “didn’t like where it was taking us; and it just wasn’t fun anymore.” He shifted his focus back to truckload for one reason and one reason only: better profitability.

Surprisingly, by focusing on truckload and its other services, Hurley retained more than half of its revenue. “Our profitability is significantly higher than it has been in the past,” Ewing said. Therein lies the secret to Hurley’s newfound truckload focus: “Bigger is not necessarily better. I’ve learned that a time or two.”

Hurley Transportation now is comprised of three divisions:

Hurley Distribution Services delivers the Arizona Republic newspaper and other publications across the state. From centers in Mesa and Deer Valley, it distributes to nine locations in greater Phoenix and has 11 statwide daily delivery routes to more than 400,000 subscribers.

Hurley Dedicated Services supplies drivers and equipment on an exclusive basis. The company has intermodal agreements with Union Pacific and Burlington Northern Santa Fe railroads.

Hurley Truckload Services provides coast-to-coast service across the United States.

In 1997, the company reported revenues of $18 million, with the newspaper distribution contributing about $7.5 million and freight operations accounting for the balance.

For the full story, see the March 15 print edition of Transport Topics. Subscribe today.