DOJ WILL NOT CHALLENGE LTL FREIGHT TRANSPORTATION COMPANIES’ JOINT VENTURE

On September 8, 2009, the Department of Justice announced that it would not challenge the formation of a Reliance Network, a joint venture between seven regional less-than-truckload (“LTL”) freight transportation companies, based on the representations made by the applicants.
The Reliance Network is comprised of: Averitt Express Inc.; DATS Trucking Inc.; Lakeville Motor Express Inc.; Land Air Express of New England; Pitt Ohio Express; Canadian Freightways; and Epic Express. These companies would like to collectively bid and engage in other collaborative activity as part of their nationwide LTL truck transportation services joint venture. According to their representations to the DOJ, the carriers would account for less than 20 percent of the LTL freight transportation business in these regional markets, and far less than 20 percent of a nationwide LTL freight transportation market. Furthermore, they represented that they would achieve shipping efficiencies combine information technology, operations, sales and marketing efforts, and administration.

According to the DOJ, the proposed joint venture will not likely reduce competition in regional LTL truck transportation markets and could enhance competition in the long haul LTL market.

Andre Barlow
(202) 589-1834
abarlow@dbmlawgroup.com