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Who is ABF? Firm part of publicly-held Arkansas company totaled Perry Desmond, managing editor of and meeting schedules. If you have By Dan Miller By 1980, ABF's revenues Commercial lose customers and Staff writer nearly $340 million. In that year, Philadelphia-based an accident, you Carter's Carrier Journal. The Journal has these companies can't afford to do Neil Goldschmidt, Jimmy by friends and skeptics alike as a to usher in deregulation of the trucking industry since 1911. competitive. Safety is a business Stock Exchange. regulations still exist concerning have shown over the years,' rising star in the trucking industry. American trucking industry. As of 1985, Desmond says ABF question - it's absolutely critical to based in Fort Smith, Ark. It is competition. Today, a proliferation company to be that big, major carriers kept by the federal known as "ABZ" on the New York of Department of Transportation shown a growth pattern as they government's Office of Motor Corp.. a publicly held compar; carriers, replacing it with "They have to be a reputable record can be found in rankings of largest subsidiary of Arkansas Best government protection over ABF carriers. Verification of ABF's safety ABF Freight Systems Inc. is seen secretary of transportation, began been publishing news related to the that because it's so incredibly Formed in 1935, ABF is the Deregulation removed ranked ninth among U.S. common survival." to have "Since deregulation Carrier. Arkansas Best also owns trucking, but gone are operating Desmond says. Riverside Furniture Corp. and ABC authorities that gave carriers rights trucking has become a cutthroat Donaldson of the Center Treadco, Inc., a tire retread firm. to certain routes. Gone as well are very for Auto Safety says the office's business, service oriented. And But Jerry However, its largest subsidiary is collectively set rates that had been if you don't provide the service, rankings are inconclusive because ABF which had total revenues of immune from government anti-trust you're dead. These people, among are based million in 1986. firm others, have been winners." they on voluntary $685 Trucking laws. Rick Smith of the Teamsters reporting by the trucking industry. revenue for '87 is projected at $770 The "shake-out" since million. deregulation has led to the terminal - are proposed for 1987. Democratic Union - a dissident Donaldson says the office According to the company, ABF formation of 12,400 new trucking This expansion is being funded Teamsters offshoot - - notes that "genuflects" to the trucking started in 1935 with "10 employees, operations, most of them small. The partly by a $50 million convertible ABF has started a "quality of life" industry, which he said is marked three trucks, three terminals, resulting overcapacity has led to the debenture offering. program for employees. by "fraud and misrepresentation." limited route authority in two states overall trucking market share being According to the 1986 Issue 103 of and first-year revenues of $50,000." concentrated more and more among the Official Motor Carrier "A lot of other carriers have tried 1983 A November 1985 Washington ABF operates in all 50 to go with something similar,' Monthly article included By the top 10 states. The directory describes Smith "ABF's has testimony to the Senate 1951, ABF - still known as carriers. Directory, Arkansas Motor Freight - was a says. reputation 20-terminal operation with revenues For example, before 1980 the top ABF's service as "thru-trailer been fairly good." Commerce Committee from'an service via interchange at principal But Smith says the company's insurance executive who says: "It is nearing $1 million. Robert A. Young 10 held 32 percent of total revenues known and accepted within Jr. purchased the firm that same and 48 percent of profits from terminals.' growth means "They're playing with widely Robert A. Young III is ABF's less-than-truckload operations. As It also notes ABF carries high the big boys now. My experience is the highway safety community that year. 10 held 47 in explosives and is approved for the they will get a little harder style of the Bureau of Motor Carrier Safety president today. of 1984, the top percent American Trucking Association's is a tiny, understaffed, underfunded, revenues and 69 percent of total management as they grow.' undermotivated (with a) Hazardous Materials Tariff. creature Acquisitions during 1977 and 1978 less-than-truckload profits. ABF says its self-description of totally out of boosted the company from 25th to Today, the "Big Three" in First" "more than responsibility U.S. regulated common carrier trucking are ABF is among "a handful that are it is proportion to "Safety is a its size.' 9th place among and nationwide in slogan." The interstate motor freight carriers. Yellow Freight, Consolidated very large scope. rated company says the best Since 1985, the responsibility of firm's Middlesex Township Freightways and Roadway It's in the top 10, maybe even in the monitoring trucks on "consistently among The Bob in the motor carrier industry" and operation was started during the Services. top five or six," says Dreyfuss, that ATA "recently selected ABF's Pennsylvania's highways has rested 1978 period of rapid growth. The ABF in 1985 ranked itself sixth a spokesman for ATA, which serves as the industry's largely with the state, PennDOT terminal here opened with four industry-wide. Wall Street financial as a trucking industry lobbyist. safety program officials say. "As far as overall reputation, best.' employees, manager Roy Slagle reports say the company is "rapidly recalls. expanding" its nationwide terminal ABF is one of the major common "ABF has been involved with our As for ABF, Donaldson admits Today, ABF's 98-door Middlesex network. carriers in the U.S.," Dreyfuss says. own safety department quite a lot," he'd "never heard" of the company. facility employs 439, including 208 According to Value Line, ABF "It's not just another major Dreyfuss says. "Most of the larger Larger carriers, he adds, usually over-the-road drivers. The opened 30-35 terminals in 1986, for : a trucking company." (companies) are extremely careful. have "fairly good safety records terminal's yearly payroll is nearly total of 285. Another 36 - including "They are a very reputable It's too costly (to have an accident) and not a lot of fraud at the major $15 million. the planned 300-door Carlisle company as far as we know," says in terms of reputation, insurance levels.'
Article from 26 Feb 1987The Sentinel(Carlisle, PA)
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