Universal Truckload Services hasn't hauled freight beyond its own galaxy, but the company does cover the US and parts of Canada (Ontario and Quebec). As an "asset-light" provider of truckload freight transportation, the company operates through a network of truck owner-operators rather than employing drivers and investing heavily in equipment. It can call upon a fleet of some 2,800 tractors and 4,750 trailers, including standard dry vans and flatbeds; the majority of its tractors and trailers are owned by others. Trucking magnates Matthew Moroun and his father, Manuel Moroun, control Universal Truckload Services (UTSI).
Besides its Truckload business, which generates more than 60% of company revenues, UTSI also serves customers through its Intermodal and Brokerage services. Freight Brokerage services, which accounts for about a quater of the company's sales, match customers' freight with carriers' capacity. Intermodal support services (about 15% of revenues) involve picking up shipping containers at ports and railheads and delivering them by truck to customers. The company's Intermodal support services is a key source of growth and is expanding its agent network, as well as encouraging agents to promote the intermodal business line.
The trucking industry has entered a phase of consolidation. Based on rising insurance costs, scarcity of capital, fuel prices, and expensive regulatory environmental equipment, smaller trucking firms are combining through merger or acquisition. UTSI's size and its continuing organic and acquisitive growth gives it a competitive edge over smaller, more vulnerable trucking companies.
To establish one of the largest full-service, asset light logistics services in North America, UTSI in late 2012 purchased LINC Logistics, a third-party logistics company, for about $350 million, including the assumption of debt. Prior to striking the LINC deal, UTSI acquired more than 20 companies between 2000 and 2010. Acquired businesses typically retain their names, so Universal Truckload Services operates under several brands, including Crossroad Carriers, Economy Transport, Great American Lines, Louisiana Transportation, Mason & Dixon Lines, Universal Am-Can, and Universal Logistics, among others.
Continuing in 2010 the company acquired two companies: Cavalry Transportation and Cavalry Logistics (intermodal, truckload, and less-than-truckload services), and TSD Transportation (provides for-hire freight services). While Cavalry Transportation and Cavalry Logistics is continuing to operate as a subsidiary, TSD Transportation was consolidated into its Louisiana Transportation operations.
Along with UTSI, the Morouns control diversified transportation company CenTra, and Matthew Moroun owns a significant stake in truckload carrier P.A.M. Transportation Services. – less