Truckload carrier Heartland Express announced it will integrate and rebrand the domestic operations of Contract Freighters, Inc. (CFI), which it acquired in 2022. The changes come amid a stretch of heavy losses for the Iowa-based company and deviate from its normal strategy of maintaining the brand identity of acquired companies.
Heartland said it’s keeping CFI’s headquarters in Joplin, Missouri and locations in West Memphis, Arkansas, and Laredo, Texas. Current CFI employees will be given the opportunity to continue their employment, in their current capacity, at Heartland or its other brands (Millis Transfer and Smith Transport).
CFI driver pay will now be aligned with Heartland’s legacy operations, meaning CFI drivers will see “an increased driver compensation and benefits package.” CFI drivers will be able to stay in their current trucks but now have the option to operate under any of Heartland’s different brands.
CFI’s Mexico subsidiary will not impacted by the changes.
The third quarter marked nine straight quarterly losses (excluding one-time real estate gains) for Heartland. Smith returned to profitability in the period while Millis and Heartland’s legacy fleet operated at low-90% operating ratios. CFI was the only Heartland fleet that was unprofitable in the third quarter, but CEO Mike Gerdin said the unit has recorded sequential improvements this year.
“Given this progress and the current status of our industry, we believe that integrating and rebranding CFI into Heartland Express is the next logical step in enhancing our consolidated operating and financial performance,” Gerdin said in a news release.
A telematics conversion and a TMS upgrade have been added overhangs for the company this year. Those projects have been completed.
Heartland said it’s still assessing the changes to determine any impact to goodwill or intangible assets.
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