UPS Freight
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UPS Freight is the Less-Than-Truckload (LTL) trucking division of UPS. UPS acquired on August 8, 2005 Overnite Transportation (and its subsidiary Motor Cargo[1]) for $1.3 billion, according to Bloomberg LP. On April 28, 2006 Overnite transportation officially became UPS Freight. The logos on the doors of the Overnite tractors were covered with signs showing the change of operator. UPS freight also immediately changed the color scheme of the tractors from blue and grey to UPS brown on the bottom, with a gold line near the center of the tractor and gray for the upper color. All new vehicles purchased by UPS freight come painted in these colors as the older Overnite equipment is replaced.
Reasons for: Prior to the buyout of Overnite, FedEx had recently purchased LTL companies American Freightways (on the east coast) and Viking Freight (on the west coast), creating FedEx Freight. UPS spokesman Norman Black told industry news outlet FleetOwner the LTL industry had become attractive due to the increasing economic and strategic attractiveness of the sector: “[LTL has become] attractive because of consolidations and watching the survivors grow and flourish as they’ve been improving operating ratios and developing new types of services customers respond to - especially in time-definite delivery options...That is what Overnite has been forefront of and that’s a huge trend in commerce now. Certainly we see it in the package world."[1]
Between 1986-2004, Overnite was owned by Union Pacific.
