Subscribe to our free, weekly email newsletter!


USA Dry Van Logistics emerges from bankruptcy

By Jeff Berman, Group News Editor
December 09, 2010

USA Dry Van Logistics, a national provider of asset-based transportation and third-party logistics focusing on cross-border shipments between the U.S. and Mexico, recently announced it emerged from bankruptcy after filing for it in February.

Company officials said that USA Dry Van was successfully able to restructure the business and have the same customer base, employees, lenders, and equipment intact. And they added that the company’s new owners are a conglomerate of lenders and shareholders led by GE Capital Corporation, CapitalOne, and FCC.

USA Dry Van’s new CEO is Dennis Reilly, whom formerly served as president of North American Transportation for OHL, and has also held positions with YRC Logistics, Menlo Logistics, CHEP USA and Frito Lay.

The main reason USA Dry Van entered into bankruptcy was that its debt was greater than its assets, said Reilly.

The company has roughly 500 tractors and drivers and 1,800 trailers and more than 250 customers and 650 employees.  Instead of shutting the company down, its lenders and owners considered the company’s strong business model and niche in the marketplace as a transportation and logistics services provider for the Maquiladora industry and elected to work through the bankruptcy process, make the needed changes, and recoup their investments by growing the business.

“They felt very confident the business could run well if given a second chance,” said Reilly.

The main services USA Dry Van offers focuses on bringing freight into Mexico from the U.S. and take finished products out of Mexico. The company leverages several strong carrier relationships in Mexico, whom take USA Dry Van trailers loaded with product to Mexico-based plants, and then take loads of finished products in Laredo via an interchange at a terminal there and move full loads to the northeast, southwest, Midwest, and southern California regions of the U.S.

USA Dry Van’s corporate headquarters are located in McAllen, Texas, and the company has an office Monterey, Mexico and a small terminal in Dallas, Texas.

“We have several assets that we use on the U.S.-Mexico border, which is why a lot of companies tend to use us, because we have a great operation for moving freight both ways across the border,” said Reilly. “We fit that niche that a lot of people want to get into, as a lot of 3PLs are not as confident running cross-border shipments as they are doing it in just the U.S.”

The majority of USA Dry Van’s customers is U.S.-based and have manufacturing plants in Mexico, according to Andres Alejo, the company’s general manager. He added that the majority of the customer base is comprised of companies in the electronics and appliances sectors, as well as automotive.
CEO Reilly said that since the company filed for bankruptcy operations have been smooth, with the primary challenge for the company being able to attract and retain high quality drivers that can handle an average length of haul of 1,100-to-1,200 miles, with an average transit time of 2.7 days. Reilly said that empty miles make up about 7 percent of its total mileage and 80 percent of its loads pertain to Mexico-based hauls.

“We want to attract safe drivers that can help expand our business,” he said. “The day-to-day operations are run very well so we don’t expect any significant changes there.”

Along with dedicated cross-border freight transportation services, USA Dry Van has a 250,000 square-foot warehouse in McAllen to provide shippers with cross-docking and trans-loading, and basic warehousing services.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Intermodal units, at 278,767 containers and trailers were up 6.7 percent compared to the same week last year and marks the third best week for intermodal ever recorded based on AAR’s data.

LM Group News Editor Jeff Berman recently conducted a wide-ranging interview with Bobby Harris, President and CEO of non asset-based 3PL BlueGrace Logistics about various aspects of the freight transportation market.

It’s small, but senior brass at YRC Worldwide will take it. After nearly seven years of continuing losses in excess of $2.6 billion, the parent of the nation’s second-largest LTL carrier posted a narrow net profit in the third quarter ended Sept. 30.

As was the case for the second quarter, third quarter earnings results for publicly-traded less-than-truckload (LTL) carriers are again strong. Signs of solid earnings results from carriers that have posted earnings to date include tonnage increases, gains in weight per shipment and average daily shipments, higher yield, and revenue per hundredweight.

While the holiday season is known to bring good tidings and cheer to all, it may also come with another thing that is not so pleasant: higher rate freights. That was the thesis of a commentary written by Mark Montague, industry pricing analyst and chief market-watcher for DAT, a Portland, Ore.-based subsidiary of TransCore.

Article Topics

News · 3PL · · Dennis Reilly · USA Dry Van Logistics · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA