Coronavirus pandemic gives trucking industry 'wind in its sails' for 2021
Yellow Corp CEO Darren Hawkins credits a 'pandemic consumer' shift from services to goods
The CEO of Yellow Corp., the trucking company formerly known as YRC Worldwide, told FOX Business Friday that the transportation and logistics industry has "wind in its sails" for 2021 after a 2020 fourth quarter that exceeded revenue expectations.
Darren Hawkins joined "Mornings with Maria" after Yellow Corp. reported wider losses than expected but year-over-year improvements in EPS, operating income, and revenue amid the coronavirus pandemic.
Hawkins credited the momentum to a "pandemic consumer" shift from services to goods strengthing construction and manufacturing but acknowledged a tightening of the supply chain as a result. Yellow Corp. also received $700 million in loans from the CARES Act for new equipment and employee benefits.
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DARREN HAWKINS: "After a tough 2020, not only for our company but for America as a whole, our 30,000 employees went into the fourth quarter with momentum. So we did see year-over-year improvement in EPS. We saw year over year improvement in operating income. And as you mentioned, revenue. There's definitely wind in the sails of the transportation and logistics economy right now.
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The pandemic consumer shifted from services more to goods, that was a lift for the transportation and logistics economy. Construction is strong right now. And Maria, each home that's built in the United States requires seven truckloads of materials to complete that construction. On the manufacturing side, I believe we'll continue to see strength there, so capacity will be tight across the entire supply chain. You mentioned the ports. Ships are backed up there also. That's creating a tight capacity for all shippers across the United States.
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New tractors and trailers certainly have a high rate of return, and on the tractor side, the increased fuel, miles per gallon decrease maintenance, increase safety features, all those things work together. And when we talk about wind in our sails for 2021, that certainly sets up the year. Demand is good."
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