Overnite Corp. - Transportation / Trucking  -  Category Directory

1000 Semmes Avenue
Richmond, Virginia 23224
(804) 231-8000
www.ovnt.com

Sales

$1.5 billion

Business Description
We are a leading, predominantly non-union provider of less-than-truckload, or LTL, transportation services, offering a full spectrum of regional, inter-regional and long-haul services nationwide. We are one of the largest LTL carriers in the United States, with 208 service centers and a fleet of approximately 6,000 tractors and over 22,000 trailers, allowing us to provide full state coverage to all 50 states. Through our national footprint and our partnerships with other carriers, we are able to provide our customers with direct service to over 45,000 cities in the United States, Canada, Puerto Rico, Guam, the U.S. Virgin Islands and Mexico. In 2002, we served a diverse base of over 60,000 customers from varying geographic and industry markets, including customers in the retail, chemical, automotive, electronics and furniture industries. We employ a flexible, predominantly non-union workforce of over 14,500 employees.

We provide our services under two established brand names: Overnite Transportation Company, or Overnite Transportation, and Motor Cargo Industries, Inc., or Motor Cargo. Overnite Transportation, our primary carrier brand, is a nationwide LTL carrier, providing regional, inter-regional and long-haul service. Overnite Transportation offers a high-quality service product in each of those markets, with an on-time performance rate of 97% in 2002. Motor Cargo, which was acquired in November 2001, is a regional LTL transportation provider, primarily serving the western United States, including Alaska and Hawaii, as well as select markets in Canada, with an on-time performance rate of over 97% in 2002. Through Overnite Transportation and Motor Cargo, we offer our customers a comprehensive selection of service products. In addition to our core LTL service, we also provide our customers with a number of additional value-added LTL services, including expedited and guaranteed delivery, cross-border, assembly and distribution, trade show, government and third party logistics services. Our LTL services (including fuel surcharges associated with these services) accounted for approximately 92% of our operating revenue in 2002. In 2002, approximately 29% of our LTL operating revenue was derived from regional services, 43% was derived from inter-regional services and 28% was derived from long-haul services. We also provide customers with full truckload service, which includes both premium-service dedicated truckload transportation in select markets, as well as truckload delivery on our backhaul lanes. Our truckload services (including fuel surcharges associated with these services) accounted for approximately 8% of our operating revenue in 2002.

In 2002, we achieved an eight-year high in operating income despite a nationwide strike of Overnite Transportation by the International Brotherhood of Teamsters, or the Teamsters. This strike, which began in October 1999, was discontinued by the Teamsters in October 2002 without obtaining any contract or concessions from us. Commencing in July 2002, Overnite Transportation employees began to decertify the Teamsters as their collective bargaining representatives at Overnite Transportation service centers. This decertification process has resulted in the Teamsters losing representation rights at all of the 26 Overnite Transportation service centers where they had previously gained certified representation rights, meaning that the Teamsters are no longer acting as the collective bargaining representative for employees at these locations. As a result of the successful resolution of the Teamsters’ strike and the decertifications, the Teamsters’ campaign to organize the employees of Overnite Transportation has ended at this time and management’s attention is no longer diverted by these issues. While we were able to achieve positive results during this period, both the Teamsters’ organizing efforts and the strike significantly limited our growth opportunities by hindering our operating efficiency and generating customer concerns about labor strife and its possible impact on service reliability. With the strike and the Teamsters’ organizing efforts resolved, we will now be able to increase our focus on enhancing customer relationships, generating new sales and improving the quality and efficiency of our services.


 

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