A shipper picks a day, then Con-way hits the highway. Con-way Freight specializes in next-day and second-day less-than-truckload (LTL) freight transportation. (LTL carriers consolidate loads from multiple shippers into a single truckload.) The company operates throughout the US, with an extended network in North America via Con-way Freight Canada and Con-way Mexico. Transborder services extend to Canada, Mexico, Asia, Europe, and the Caribbean. Overall, Con-way Freight operates a fleet of about 9,100 tractors and 26,300 trailers from some 290 owned or leased terminals. Con-way Freight is the main subsidiary of Con-way, which also owns supply chain management and truckload freight transportation businesses.
After declining in 2009, Con-way Freight's revenue rose 17% in 2010, due in part to increased per-day shipments handled by the company, as well as higher fuel-surcharges collected from customers. However, Con-way Freight's increased shipment activity led to additional costs that cut into the company's operating income. Higher costs associated with salaries, benefits, insurance, and other expenses pushed the company's operating income down 44%.
Con-way Freight has adopted a number of initiatives to reduce its costs over the long run. The company re-engineered its network to cut one day off of transit times to 460 US destinations in 2010. The cut allowed the company to reduce its total operating miles by more than 16 million and save about 2.6 million gallons of diesel fuel annually. In addition, the company has been focused on upgrading and improving the safety of its fleet. In 2010 it installed driver alert and control technologies in its trucks and replaced about 1,300 of its tractors with new Freightliner Cascadia 2010 models. The models are equipped with safety technologies for stability, front collision warning, and land departure warning. – less