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TFI may be interested in talking to ArcBest about operational collaboration, TFI chief says

TFI has strategic investment in ArcBest and may collaborate on land sales, Bédard says

TFI lowers full-year outlook as environment weakens. (Photo: TForce Freight)

Correction: An earlier version incorrectly referenced the issue of M&A in Alain Bédard’s comments regarding ArcBest. Bédard did not talk about M&A.

TFI head said Monday that the Montreal-based transport conglomerate would be interested in operational combinations with the U.S.-based less-than-truckload carrier ArcBest Corp. (NASDAQ: ARCB).

TFI International Inc. Chairman, President and CEO Alain Bédard said Monday that the Montreal-based transport conglomerate is interested in operational combinations with the U.S.-based less-than-truckload carrier ArcBest Corp. (NASDAQ: ARCB).

Read More: Is the cat out of the bag on a TFI and ArcBest deal?


Bédard said that TFI owns a small percentage of ArcBest shares and sees opportunities to collaborate operationally.

Bédard said the ArcBest holdings represent a strategic investment for TFI (NYSE: TFII). For example, as TFI purges some of the unprofitable U.S. LTL business it acquired when it bought UPS Freight in early 2021, Fort Smith, Arkansas-based ArcBest is one of the first companies that TFI would consider selling terminal land to, he said.

Interestingly, ArcBest shares spiked 4.6% in after-hours trading. TFI shares were unchanged in after-hours trading after being down during the regular trading session.

Bèdard said that TFI continues to winnow out volumes that came with the UPS Freight acquisition. About 30% of the freight that it initially received “didn’t fit at all,” he said.


His comments came as TFI reported $1.72 in fourth-quarter adjusted diluted earnings per share, up 14% from the same period in 2021 and about in line with analysts’ estimates. Revenue before the company’s fuel surcharge fell to $1.95 billion from $2.14 billion. 

The drop was partly due to the absence of volume after the sale of the company’s U.S. truckload, temperature-controlled and Mexican non-asset-based logistics businesses last August. It was also due to reduced U.S. volumes due to weaker end market demand and the elimination of unprofitable freight, TFI said.

Fourth-quarter revenue before fuel surcharge fell in all four TFI segments compared with the 2021 period, the company said. Operating income rose in all segments except LTL, which was down 15%.

Bèdard told analysts that companywide volumes would be soft in the first half of 2023 and hopefully improve in the second half. TFI will play its cards conservatively through the year because the second half, while looking better, will not be gangbusters, Bédard said.

TFI reported fourth-quarter operating income of $216 million, up slightly from the same period in 2021. Net income rose to $153.5 million from $144.1 million.

TFI continues to grapple with service and efficiency issues at T-Force Freight, the U.S. LTL business which is the rebranded name of the old UPS Freight. T-Force Freight is hampered by the perception that it lacks the same service reputation as its U.S.-based counterparts, according to Bédard.

He also said that inventory levels in North America remain “too high” as supply chains still cope with a deluge of orders from months back.

Bédard said that the company will do a modest number of mergers and acquisitions, and that it remains opportunistic as potential sellers panic due to what has become a difficult operating environment.


4 Comments

  1. Dan Harp

    It appears that something is in the works here at ABF. There is a definite push to update older terminals as far as office space with not much regard to the actual equipment or dock facilities used by the hourly associates. I work at the Ft. Worth location where a remodel was just completed of the offices. Unfortunately, the dock areas themselves built back in the late 60’s weren’t touched other than new overhead lighting. Could it be that it’s an attempt to put a ribbon on a pig so to speak to make locations a bit more attractive to a buyer? Filthy beat up trucks and trailers, decrepit dock facilities but nice offices seems a bit questionable and suspicious.

  2. Wesley Hammer buf121

    Glad I got out when I did. Ups ran the old overnight into the ground and destroyed a good company. Tfi was a fool for believing that they could fix it. Ups spent about the last 5 years getting rid of all there “ undesirables” in management giving them promotions to jump over to the fright side and they further destroyed a place I enjoyed working for 16 years. After hearing about the French Canadians buying it I took all my vacation and personal time then dropped off a resignation letter.

  3. Victor Castillo

    I’m a former Tforce dockworker where I saw lots of damaged freight (inbound) and yet, still had to be delivered. Palletized Freight that was oversized for the trailers, where it was loaded onto another trailer as a single piece. This would cause drivers to make two deliveries on the same route

  4. Ken Gibbons

    This to sounds like a ploy to have rank and file members of the teamsters be willing to except less of a contract. ABF contract is up in June 2023 and Tforce is up in July 2023. There is a shortage of truck drivers nationally and drivers are seeking higher wages even in slow times. Companies are concerned if they loose drivers and business picks up they won’t get them back.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.