Swift Transportation Company operates as a multi-faceted transportation services company. The company operates a fleet of truckload equipment in North America. As of December 31, 2013, the company operated a tractor fleet of approximately 18,000 units consisted of 12,800 tractors driven by the company's drivers and 5,200 owner-operator tractors; a fleet of 57,300 trailers; and 8,700 intermodal containers from 40 major terminals positioned near major freight centers and traffic lanes in the United States and Mexico. During 2013, the company’s tractors covered 2.1 billion miles for shippers throughout North America. Segments The company operates through four operating segments: Truckload, Dedicated, Central Refrigerated, and Intermodal. Truckload This segment consists of one-way movements through irregular routes throughout the United States, Mexico, and Canada. This service utilizes both the company and owner-operator tractors with dry van and flatbed, as well as specialized trailing equipment. The company’s cross-border, Mexico truckload business includes service through Trans-Mex, its wholly-owned subsidiary, which is a trucking company in Mexico. The company’s Mexican operations primarily haul through commercial border crossings from Laredo, Texas westward to California. Through Trans-Mex, it could move freight across the U.S.-Mexico border, and its integrated systems allow customers to track their goods from origin to destination. Dedicated This segment devotes use of equipment and offers tailored solutions under long-term contracts. This segment’s operations use the company’s terminal network, operating systems, and for-hire freight volumes to source backhaul opportunities to improve its asset utilization and reduce deadhead miles. This segment provides transportation professionals on-site at each customer’s facilities and has a centralized team of transportation engineers to design transportation solutions to support private fleet conversions and/or develop optimal solutions for customers’ transportation requirements. Central Refrigerated This segment consists primarily of shipments for customers that require temperature-controlled trailers and represents the core operations of this segment. These shipments include one-way movements through irregular routes and dedicated truck operations, as well as various intermodal trailer on flat car and third party logistics loads. Intermodal This segment includes revenue generated by moving freight through the rail in the company’s containers or other trailing equipment, combined with revenue for drayage to transport loads between the railheads and customer locations and requires lower tractor investment than general truckload service, making it one of its less asset-intensive businesses. It offers these products to and from 59 active rail ramps located across North America. The company operates its own drayage fleet and has contracts with third party drayage operators across North America. Other Businesses The company’s other nonreportable segments include its freight brokerage and logistics management services; Interstate Equipment Leasing, LLC (IEL); insurance; and shops. Through its freight brokerage and logistics management services, the company offers its transportation management expertise and/or arranges for other trucking companies to haul freight that does not fit its network. The company’s freight brokerage and logistics management services enable it to offer capacity to meet seasonal demands and surges. Its services include offering tractor leasing arrangements through IEL to owner-operators, underwriting insurance through its captive insurance companies, and providing repair services through its maintenance and repair shops to owner-operators and other third parties. Customers and Marketing The principal types of freight that the company transports include discount and other retail merchandise, perishable and non-perishable food, beverages and beverage containers, paper and packaging products, consumer non-durable products, manufactured goods, automotive goods, and building materials. The company’s major customer includes Wal-Mart. Growth Strategy In addition to expanding the company’s tractor fleet through organic growth, and to take advantage of opportunities to add complementary operations, the company intends to pursue selected acquisitions. Seasonality In the Eastern, Western, and Midwestern United States, during the winter season, the company’s equipment utilization declines and its operating expenses increase, with fuel efficiency declining because of engine idling and harsh weather conditions could cause higher accident frequency, increased claims, and various equipment repairs. From time to time, the company also suffers short-term impacts from weather-related events, such as tornadoes, hurricanes, blizzards, ice storms, floods, fires, earthquakes, and explosions that could harm its results of operations or make its results of operations volatile. Regulation The company’s drivers and owner-operators must comply with the safety and fitness regulations of the Department of Transportation (DOT), including those relating to drug- and alcohol-testing and hours-of-service. Other agencies, such as the Environmental Protection Agency and Department of Homeland Security, also regulate the company’s equipment, operations, and drivers. The DOT, through the Federal Motor Carrier Safety Administration, imposes safety and fitness regulations on the company and its drivers. History Swift Transportation Company was founded in 1965.
swift transportation co (SWFT:New York)
2200 South 75th Avenue
Phoenix, AZ 85043
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