Thus, instead of charging the Department of Defense for shipments based on the correct weight, the defendants knowingly billed the government (and their other customers) based on weights that they knew to be inflated. Specifically, the United States’ lawsuit alleges that the defendants reweighed thousands of shipments and suppressed the results whenever they indicated that a shipment was actually lighter than its original estimated weight. “Knowingly overcharging the government is an affront to American taxpayers, and the Department of Justice will seek to ensure that those who engage in such misconduct are held accountable.” “Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. The United States further alleges that the defendants knowingly made or used false statements concealing their overcharging practices to the Department of Defense. The United States alleges that, for more than seven years, the defendants defrauded the Department of Defense by millions of dollars for shipments that were actually lighter, and thus cheaper, than the weights for which the defendants charged the government. The United States filed this lawsuit in U.S. (Yellow), alleging that these companies systematically overcharged the government for freight carrier services and made false statements to the government that hid their misconduct, the Justice Department announced today.
YELLOW TRUCKING DRIVER
On Wednesday, Schneider CEO Mark Rourke told analysts the shortage will cause an "increasingly inflationary driver wage marketplace" in 2021.The United States has filed a complaint in the Western District of New York against YRC Freight Inc., (YRC) Roadway Express Inc. Yellow's remarks about the driver shortage and its strategies to mitigate it are echoed throughout the industry, with leaders talking about pay hikes as incentives. from two of our companies at one customer, we're able to service that with one driver, one tractor, one set of equipment." today, they're operating together," said Hawkins. "In Birmingham, Alabama, for example, where you had Holland and YRC Freight operating separately. That will mean fewer trips to clients, and more efficiency.
One benefit for the new consolidated Yellow will be servicing clients with one brand name. Yellow officials said during Q1 2021, it will likely acquire more, including 1,100 tractors, 1,900 trailers and 250 containers. By the end of 2020, Yellow added 300 tractors and 1,200 trailers. Once the federal loan began flowing in, Hawkins said in August that newer trucks, purchased without "leasing headwinds," would be able to come online quickly, improving fuel efficiency and driving down maintenance costs. They were twice the age of the industry average, and the carrier was spending at least $10,000 per truck, per year, according to Jeff Kauffman, an analyst with Loop Capital. Yellow owned approximately 14,000 tractors in 2020. Maintenance costs were soaring, and trucks were being pulled off the road for repairs. The loan has been crucial in the carrier's efforts to finally address the problems of an aging fleet that, for too long, had not seen replacements of old rigs. The firm was close to bankruptcy before the federal government threw it a $700 million lifeline during the initial onset of the pandemic. But for Yellow, it is more critical to get past driver shortages.
YELLOW TRUCKING DRIVERS
Now, as Yellow adds newer, safer, more fuel-efficient trucks and pares its losses, its biggest challenge is getting drivers in the seats of the new rigs.Ĭompany officials said during the call that limited driver availability would keep its LTL capacity flat but stable, but they would prefer to have more drivers to capture more revenue.
But the company has faced one hurdle after another.
Subsidiary operations will consolidate and the company will strive for profitability. Yellow shook off its YRC name on Thursday and officially declared the company would operate under its former banner.
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