Yellow Roadway will close USF Dugan, which it recently acquired as part of its purchase of USF, and have other USF units take over those routes.
The Kansas-based carrier announced Monday, June 20 that USF Dugan would cease pickup operations at the close of business Friday, July 8, but will deliver all shipments in its system and fulfill all service commitments.
Regional companies USF Bestway, USF Holland and USF Reddaway will serve the former Dugan routes.
Yellow Roadway CEO Bill Zollars said the change would improve customer service while making the regional companies more efficient. “In addition, we expect these actions to enhance long-term financial performance and shareholder value,” Zollars said.
Regional lines New Penn Motor Express and USF Glen Moore will not be affected directly by the realignment.
The previous week, Yellow Roadway announced it bought a 50 percent stake in JHJ International Transportation, the second-largest air freight forwarding company in China. JHJ is a subsidiary of Jin Jiang Investment, Yellow Roadway’s partner in the joint venture.