Yellow’s Regional Consolidation Will Increase Size of Saia Freight

Yellow Corp. (YELL) will consolidate its regional carriers — distilling them from four into two — to improve service for shippers, generate more profits for shareholders and perhaps attract the attention of investors eager to purchase a large less-than-truckload carrier.

Saia Motor Freight Line of Atlanta will increase dramatically in size, adding nine western states to its current southeastern territory. To do this, Yellow executives will collapse the corporation’s WestEx Inc. and Action Express subsidiaries into Saia, effective March 4.

Jevic Transportation of Delanco, N.J., the other member of Yellow’s regional group, will remain unchanged, as will the corporation’s flagship carrier, Yellow Freight System.

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The new Saia will sprawl across 21 states from Virginia to Florida to California to Washington. Despite the enormity of the territory, however, shippers will not be able to send freight from Atlanta to Seattle via Saia.



For the full story, see the Jan. 22 print edition of Transport Topics. Subscribe today.