USFREIGHTWAYS SELLS FREIGHT FORWARDING ARM
USFreightways Corp., the Chicago-based trucking, freight forwarding and logistics group, has announced that it is withdrawing from the freight forwarding business by selling these activities.
GPS Logistics, Inc. and Seko Worldwide Acquisition LLC have agreed to acquire USF Worldwide Inc. and USF Worldwide Logistics (U.K.) Ltd., USF’s freight forwarding subsidiaries.
Freight forwarding accounted for about 10 percent of USFreightways’ group revenue of $2.6 billion in 2001, and this line of business has been losing money.
Terms of the contract were not disclosed. USFreightways expects the sale to close on or before Oct. 31.
“Since early in the third quarter when we announced our decision that the freight forwarding segment did not fit our business strategy, we have been seeking an arrangement that would bring this portion of USF’s history to a conclusion,” said Samuel K. Skinner, USFreightways’ chairman, president and chief executive officer.
The company will now concentrate on its less-than-truckload, truckload and logistics operations.
In January, USFreightways had already terminated its USF Asia Group freight forwarding joint venture in Asia.