Profile: Con-way Inc (CNW)
5 May 2015
Con-way Inc. and its subsidiaries (Con-way), incorporated on August 13, 1958, through its subsidiaries, provide transportation, logistics and supply-chain management services for a range of manufacturing, industrial and retail customers. Con-way’s business units operate in regional, inter-regional and transcontinental less-than-truckload and full-truckload freight transportation, contract logistics and supply-chain management, multimodal freight brokerage, and trailer manufacturing. Con-way operates in three segments: Freight, Logistics and Truckload. The Freight segment provides day-definite regional, inter-regional and transcontinental less-than-truckload freight services throughout North America. The Logistics segment provides supply-chain engineering and consulting, and multimodal freight brokerage services. The Truckload segment provides short- and long-haul, asset-based transportation services throughout North America.
The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload (LTL) motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services throughout North America.
LTL carriers transport shipments from multiple shippers utilizing a network of freight service centers combined with a fleet of linehaul and pickup-and-delivery tractors and trailers. Freight is picked up from customers and consolidated for shipment at the originating service center. Freight is consolidated for transportation to the destination service centers or other intermediate service centers (referred to as freight assembly centers). At freight assembly centers, freight from various service centers can be reconsolidated for transportation to other freight assembly centers or destination service centers. From the destination service center, the freight is delivered to the customer. LTL shipments weigh between 100 and 15,000 pounds. In 2013, Con-way Freight’s average weight per shipment was 1,334 pounds. As of December 31, 2013, Con-way Freight operated 300 freight service centers, of which 149 were owned and 151 were leased. As of December 31, 2013, Con-way Freight’s owned service centers accounted for 69% of its door capacity. As of December 31, 2013, Con-way Freight owned and operated approximately 9,300 tractors and 24,600 trailers, including tractors held under capital lease agreements. The Freight segment, before inter-segment eliminations, contributed 61.4% of the Company’s revenue for the year ended December 31, 2013.
The Logistics segment consists of the operating results of the Menlo Worldwide Logistics (Menlo) business unit. Menlo develops contract-logistics solutions, which can include managing complex distribution networks, and providing supply-chain engineering and consulting, and multimodal freight brokerage services. The term supply chain generally refers to a strategically designed process that directs the movement of materials and related information from the acquisition of raw materials to the delivery of products to the end-user. Menlo's supply-chain management offerings are primarily related to transportation-management and contract-warehousing services. Transportation management refers to the management of asset-based carriers and third-party transportation providers for customers’ inbound and outbound supply-chain needs through the use of logistics-management systems to consolidate, book and track shipments. Contract warehousing refers to the optimization and operation of warehouses for customers using technology and warehouse-management systems to reduce inventory carrying costs and supply-chain cycle times. For several customers, contract-warehousing operations include light assembly or kitting operations. As of December 31, 2013, Menlo operated 86 warehouses in North America, of which 64 were leased by Menlo and 22 were leased or owned by clients of Menlo. Outside of North America, Menlo operated an additional 74 warehouses, of which 56 were leased by Menlo and 18 were leased or owned by clients. Menlo owns and operates a small fleet of tractors and trailers to support its operations, but utilizes third-party transportation providers for the movement of customer shipments. The Logistics segment, before inter-segment eliminations, contributed 27.3% of the Company’s revenue for the year ended December 31, 2013.
The Truckload segment consists of the operating results of the Con-way Truckload business unit. Con-way Truckload is a full-truckload motor carrier that utilizes a fleet of tractors and trailers to provide short- and long-haul, asset-based transportation services throughout North America. Con-way Truckload provides dry-van transportation services to manufacturing, industrial and retail customers while using single drivers as well as two-person driver teams over long-haul routes, with each trailer containing only one customer’s goods. This origin-to-destination freight movement limits intermediate handling and is not dependent on the same network of locations utilized by LTL carriers. On average, Con-way Truckload transports shipments more than 800 miles from origin to destination. Under its regional service offering, Con-way Truckload transports truckload shipments between 100 and 600 miles, including local-area service for truckload shipments of less than 100 miles. As of December 31, 2013, Con-way Truckload operated five owned terminals with bulk fuel, tractor and trailer parking, and in some cases, equipment maintenance and washing facilities. In addition, Con-way Truckload also utilizes various drop yards for temporary trailer storage throughout the United States. As of December 31, 2013, Con-way Truckload owned and operated approximately 2,700 tractors and 8,200 trailers. The Truckload segment, before inter-segment eliminations, contributed 11.3% of the Company’s revenue for the year ended December 31, 2013.
2211 Old Earhart Rd Ste 100
ANN ARBOR MI 48105-2963