Caliber System
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Caliber System Inc., known until 1996 as Roadway Services Inc., was a transportation holding company based in Akron, Ohio, United States. During its history, Caliber owned a number of logistics companies including Roadway Express, Viking Freight and Roadway Package System (RPS) among others. Roadway Express was spun off in 1995 and Caliber was acquired by FedEx in 1998 with subsidiaries becoming FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Global Logistics.
HistoryEdit
Foundation and diversificationEdit
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Roadway Services Inc. (RSI) was created in 1982<ref name="FW RE Hist">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> as a holding company by national less than truckload (LTL) carrier Roadway Express. Roadway Express was initially RSI's only subsidiary but in 1984 the company acquired short-haul carrier Spartan Express Inc., then specialized truckload carrier Nationwide Carriers Inc., and finally in 1984, it purchased Roberts Express, a same-day critical trucking company, from Emery Air Freight.<ref name="SA Parcel">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
With both truckload and LTL services available via its subsidiaries, in 1985 RSI founded a package delivery service, Roadway Package System (RPS) in Pittsburgh, Pennsylvania.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> RPS was intended to out-compete the package delivery services of UPS by structuring itself for lower costs.<ref name="SA Parcel" /> By 1988, RPS covered 70% of the US from 130 terminals.<ref name="FW RE Hist" />
In the late 1980s and early 1990s RSI experienced both expansion and contraction as it acquired the largest western US regional carrier, Viking Freight, but closed the unprofitable Nationwide Carriers in 1989. In 1990, Viking subsidiary VFS Transportation was closed and Spartan was absorbed into Viking, operating as a subsidiary. At the same time Roadway Express continued its expansion with services to Europe in 1991 and a number of Pacific Rim ports soon after.<ref name="FW RE Hist" /> Also in 1991, RSI replaced Pan Am Corp. on the Dow Jones Transportation Average.<ref name="Dow Switch">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> At the time, RSI was the third-largest motor freight carrier in the US.<ref>Template:Cite news</ref>
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In 1993, RSI acquired Southwest regional LTL carrier Central Freight Lines<ref name="FWCFLHIST">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> which it placed in its Roadway Regional Group along with Viking in the West, Viking subsidiary Spartan in the central and southern US and Cole's Express in New England.<ref name="TSHA">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> RSI also expanded into air freight with its 1993 founding of Roadway Global Air (RGA) based in Indianapolis.<ref name="Limping RGA">Template:Cite news</ref><ref name="RGA Airport">Template:Cite news</ref>
Roadway Express spinoffEdit
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While RSI's smaller regional carriers were all non-union, Roadway Express was unionized<ref name="RDWYSPINOFF">Template:Cite news</ref> and in April 1994 it was impacted by a nationwide strike of the Teamsters Union. The strike was the result of a breakdown in negotiations between the Teamsters and Trucking Management Inc., a negotiating group which represented 23 large trucking companies including Roadway Express, Consolidated Freightways, and Yellow Freight.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In the end, the strike lasted 24 days<ref name="SA Parcel" /> and, according to the RSI, resulted in losses of Template:US$ for the quarter at Roadway Express.<ref name="RS FUNDUNI">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
The strike at Roadway Express highlighted the division's profitability imbalance when compared to RSI's non-union carriers. At the time, Roadway Express contributed over 40% of the parent company's Template:US$ annual revenue<ref name="RDWYSPINOFF" /> but was less profitable than the other trucking units.<ref name="RS FUNDUNI" /> As a result, RSI announced in August 1995 that it would spin off Roadway Express as a separate, publicly traded company.<ref name="RDWYSPINOFF" /> As an independent company, Roadway Express grew substantially achieving profits of Template:US$ in its first year.<ref name="FW RE Hist" /> In 2003 Roadway was acquired by Yellow Freight to form Yellow Roadway Corporation.<ref name="Yellow YRC">Template:Cite news</ref>
Caliber SystemEdit
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In November 1995, Roadway Services announced it was changing its name to Caliber System, effective in January 1996 and would move its stock listing from the Nasdaq to the NYSE under the new symbol "CBB."<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="RS Name Change CS">Template:Cite news</ref> It also rebranded Roadway Logistics and Roadway Technology to Caliber Logistics and Caliber Technology, respectively.Template:Cn
Caliber immediately began an effort to reorganize in an attempt to decrease costs. In November it shut down RGA and sold the assets to Burlington Air Express.<ref name="Airport Sees">Template:Cite news</ref> Caliber said it had lost Template:US$ on the venture.<ref name="RGA Airport" /> In December it announced it would be consolidating its remaining trucking companies, Viking (with subsidiary Spartan), Central, and Cole's into a nationwide carrier named Viking Freight Inc.<ref name="FWCFLHIST" /> But, Caliber continued to experience significant losses.<ref name="HOUBIZ">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Viking announced a wage freeze in July 1996 and in December said it would be eliminating 30 terminals and 1,500 jobs in a bid to reduce costs.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Despite positive performances from RPS, Roberts, and Caliber Logistics in Q1 1997, Caliber announced in March it would be selling or closing a large portion of the eastern operations of Viking leaving it as a west coast-focused carrier.<ref name="Viking Cuts">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Caliber reported Viking had seen losses of around Template:US$ after having been unable to bring Viking to profitability since merging its smaller, regional carriers into a nationwide offering. The cuts were expected to include 4,000 jobs and 83 terminals in the eastern, southern, and central US. These areas had been primarily served by the former Coles and Spartan subsidiaries.<ref name="Viking Cuts" /> In June 1997, Caliber sold the assets that had formerly comprised Central to an investment group led by former Central leadership backed by trucking magnate and Swift Transportation co-founder Jerry Moyes. It was re-incorporated as Central Freight Lines and continued as an independent regional LTL carrier.<ref name="FWCFLHIST" />
Acquisition by FedExEdit
In January 1998, Caliber System was acquired<ref name="FDX Buys CS">Template:Cite news</ref> by the newly formed FDX Corp., now FedEx Corp, a company formed by Federal Express to serve as a holding company for its express business and its new, Caliber subsidiaries.<ref name="FDX History" /> Following the acquisition, former Caliber subsidiary Roadway Express (Template:Nasdaq) took Caliber's place on the Dow Jones Transportation Average.<ref name="Dow Switch" />
Fate of subsidiariesEdit
In the years prior to its acquisition by FedEx, Caliber had already spun off, sold, or shut down several major subsidiaries:
- Nationwide Carriers, its truckload subsidiary, shut down in 1988 and its operations were absorbed by Viking<ref>Template:Cite news</ref>
- Roadway Express was spun off as an independent, publicly traded company in 1995. It was acquired by rival Yellow Corp. in 2003 to form Yellow Roadway Corporation.<ref name="RDWYSPINOFF" /><ref name="Yellow YRC" />
- Roadway Global Air was shut down in 1995 and its assets were sold to Burlington Air Express.<ref name="Airport Sees" />
- Spartan Express had been made a subsidiary of Viking in 1990 and was merged into Viking in 1996. Its former operations were shut down in 1997 when Viking pulled out of the southeast.<ref name="Closing Jobless">Template:Cite news</ref>
- Coles Express had been merged into Viking in 1996 and its former operations were shut down in 1997 when Viking pulled out of the northeast.<ref name="Coles Name">Template:Cite news</ref><ref name="Closing Jobless" />
- Central Freight Lines former assets (Viking's central operations) were sold to former Central management in 1997 and resumed independent operations.<ref name="Coles Name" /><ref name="FWCFLHIST" />
At the time of its acquisition by FedEx, Caliber had five major subsidiaries remaining:<ref name="FDX History">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
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- RPS became FedEx Ground in January 2000 complementing FedEx's existing Federal Express courier business.<ref name="FDX History" />
- Viking continued until 2002 when it was renamed FedEx Freight West, part of the new FedEx Freight brand along with American Freightways, renamed FedEx Freight East. With the 2006 acquisition of Watkins Motor Lines, all three were integrated into a single entity, FedEx Freight.<ref>{{#invoke:citation/CS1|citation
|CitationClass=web }}</ref>
- Roberts remained focused on same-day-critical trucking services and was renamed FedEx Custom Critical in January 2000.<ref name="FDX History" />
- Caliber Logistics and Caliber Technology were merged to form FedEx Global Logistics shortly after the acquisition.<ref name="FDX History" />
See alsoEdit
- Trucking industry in the United States
- History of the trucking industry in the United States
- Package delivery in the United States
- FedEx Express
- Template:Portal-inline
- Template:Portal-inline
- Template:Commons-inline
ReferencesEdit
Template:FedEx Template:Yellow Corporation Template:Trucking industry in the United States Template:US logistics Template:Authority control