The YRC Freight vehicle fleet's repair status has exceeded a federal intervention threshold set by the U.S. Department of Transportation, which may result in further monitoring.
The repair status of YRC Freight’s vehicle fleet has exceeded a federal intervention threshold set by the U.S. Department of Transportation.
According to the DOT’s Federal Motor Carrier Safety Administration, YRC Freight’s vehicle maintenance score is now at 75 percent. That means the DOT will make it a priority to subject YRC Freight's vehicles to more safety investigations. A lower vehicle maintenance score indicates a better state of repair.
YRC Freight is the largest operating sector of Overland Park-based less-than-truckload carrier YRC Worldwide Inc. (Nasdaq: YRCW). According to FMCSA’s online database, YRC Freight’s vehicle maintenance score has slipped since the Kansas City Business Journal last highlighted the issue in July.
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An undated internal memo obtained by the Kansas City Business Journal, apparently written by Dan Thomas, vice president of transportation and labor at YRC Freight, said the status means that the company now is in “mandatory inspection status” and that every YRC Freight vehicle that passes through a weigh station is “likely to end up in a full inspection.” Thomas said the company must continue its efforts to improve safety performance and increase its focus on making pre- and post-trip vehicle inspections.
In a statement, the company said the 75 percent score does not trigger a “federal intervention.” In an interview, CFO Jamie Pierson said Thomas’ statement about every single vehicle likely being inspected is false. An FMCSA official confirmed that the company probably will not be subjected to mandatory inspections. However, the official said, the threshold and the warning sign attached to the company’s online profile indicate that the agency may prioritize a motor carrier for further monitoring.
EXCLUSIVE: YRC rolls out new tractors, safety programs for 2015
The vehicle maintenance score development is not a new issue for YRC, PIerson said, and the company has been in constant communication with the FMCSA about how it can improve its safety performance. The company could not identify a single issue that caused the score to pass the 75 percent threshold, but Pierson said the company’s financial challenges in past years did contribute to the decline of the YRC Freight fleet.
The company also pointed out that the vehicle maintenance score is just one part of the seven points that form the FMCSA’s Behavior Analysis & Safety Improvement Categories scores. Overall, the company said, YRC Freight driver safety performance is among the best in the industry.
According to the FMCSA, the company’s regional carriers — Reddaway, Holland and New Penn — received better fleet maintenance scores than YRC Freight. Holland (called USF Holland Inc. by the DOT) owns a 74 percent score. Reddaway (called USF Reddaway Inc.) and New Penn (called New Penn Motor Express Inc.) own a 31 percent and 38 percent score, respectively.
YRC Freight’s vehicle maintenance score lags its main competitors in the less-than-truckload sector. Con-way Freight Inc. owns a 22 percent score; Old Dominion Freight Line Inc., 41 percent; FedEx Freight Inc., 45 percent; UPS Ground Freight Inc., 52 percent; and ABF Freight System Inc., 53 percent. A score of 45 to 55 percent is average for the industry.
In a statement, YRC said it’s taking numerous steps to improve the state of its vehicle fleet. The company plans to acquire more than 750 new tractors and 1,000 new trailers for the 8,381-vehicle YRC Freight fleet. The new tractors will be outfitted with state-of-the-art safety technology, and the company plans to add additional safety features to its existing vehicle stock.
The company also is reducing the interval between maintenance cycles to identify and correct issues and is installing LED lights in its headlamps to reduce the number of citations it receives for that issue. The company will continue its companywide safety training as well.