P
aul Page of The Wall Street Journal reports that Yellow is facing a new risk to its business as the trucker’s labor concerns and financial troubles converge. He writes (abridged):
The Teamsters union is threatening a walkout after the debt-laden operator missed a payment due this month to the Central States pension fund and said it is looking to defer anoth
er payment in August. The WSJ Logistics Report’s Paul Berger writes the union says drivers will walk out as soon as July 24 over the payments, raising new fears over the viability of the third-largest operator in the U.S. less-than-truckload market. Wolfe Research says in a note that a strike would likely put Yellow “on the brink of bankruptcy.” Market analysts say some shippers already are shifting freight to other carriers. That may be costing Yellow revenue it needs to help solve its liquidity problem, which is hanging over the business even as Yellow tries to streamline its operations.
