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Apollo leads drive to bail Yellow out of bankruptcy

NASHVILLE — Creditors led by Apollo Global Management Inc. are nearing a deal to provide Yellow Corp. with fresh cash during a coming bankruptcy, Bloomberg News reported, citing people familiar with the matter. Shares of Yellow were up 78% at $3.14 in afternoon trade on Tuesday, Aug. 1. The U.S. asset manager, which owns most of one of Yellow’s term loans, is well-positioned to provide backing and is finalizing a deal to lead a debtor-in-possession financing for the cash-trapped trucking company, the report said. Yellow declined to comment, while Apollo did not immediately respond to a Reuters request for comment. Yellow, formerly called YRC Worldwide, is the third-biggest U.S. trucking company. It transports goods from multiple shippers in single trailers and focuses on “less-than-truckload” (LTL) shipping, the transportation of goods that don’t require a full truckload. It recently averted a threatened strike by 22,000 Teamsters-represented workers after paying more than $50 million it owed in benefits and pension accruals. Last week, the Teamsters union said Yellow had ceased operations and was filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt. The trucking firm, which bought companies such as Roadway in 2003 and USF in 2005 to strengthen its LTL offerings, posted a total debt of $1.54 billion last year, according to Refinitiv data. The company’s struggles were compounded by a steep drop in e-commerce shipments from early pandemic highs and an industry-wide decline in freight volumes over the last year. Yellow has $1.3 billion in debt payments due in 2024, including a $567.4 million term loan due in June and a $729.4 million U.S. Treasury loan due in September.

Canadian firm Titanium Transportation Group acquires US-based Crane Transport

BOLTON, Ontario, Canada — Titanium Transportation Group Inc. has acquired the assets and equipment of Crane Transport of Oakwood, Georgia. According to a news release, the deal totals $53 million, comprising of cash, a vendor takeback loan and assumption of net debt. Titanium also purchased all real estate related to Crane’s operations, including the head office terminal in Georgia, and its satellite terminal in Alabama, for an additional consideration of $6 million, the news release noted. Titanium officials say they have funds to close the transaction and will not require additional financing. Founded in 2001, Crane Transport is a family-owned and operated business specializing in Full Truckload interstate freight transportation services. Crane generates approximately $60 million in annualized revenue and operates approximately 200 trucks. “Today’s announcement is further evidence of Titanium executing on its strategic plan and continuing to build a strong foundation for future growth in North America,” said Titanium CEO Ted Daniel. “The addition of Crane Transport’s full truckload business is highly synergistic within our existing network, immediately adding capacity and valuable new customer relationships. The acquisition will allow us to expand our presence across the United States through our new strategically located terminals in Georgia and Alabama, expanding our service offerings and enabling us to offer a wide range of services including end-to-end supply chain and freight management solutions to our existing customers.” Daniel added that “With the addition of Crane Transport, we see multiple near-term opportunities to enhance profitability, as well as longer-term opportunities to optimize equipment and technology towards continued growth and shareholder value creation. Crane Transport is an excellent fit for us, from a strategic and cultural point of view and I would like to welcome the Crane team into the Titanium family.” Key transaction highlights Titanium’s first U.S.-based asset acquisition. Expands Titanium’s current presence in Georgia and adds Alabama to its growing U.S. footprint, positioning the company to enhance its service offerings with Titanium branded trucks in a major U.S. transportation hub. Titanium will own the real estate of both terminals, with each being 11 acres. The acquisition is expected to be accretive after integration, which management expects to be completed in approximately twelve months. This acquisition continues to expand Titanium’s presence in the US southeast’s freight alley, which includes North Carolina, South Carolina, Tennessee, Georgia and Alabama, where a significant portion of this region’s economy is driven by transportation related activities. Danny Crane, founder and CEO of Crane Transport, said he is “pleased to have the Crane team join the Titanium family. I feel the business and culture of Titanium is a perfect fit for our group moving forward. I am confident that Titanium’s strong platform and growth strategy will be a perfect fit for Crane. Their focus on innovation and technology, as well as culture will provide opportunities of growth for our employees, while continuing to deliver reliable service to customers, every mile of the way.”

WIT names Top Woman-Owned Businesses in Transportation

ARLINGTON, Va. — Redefining the Road magazine, the official magazine of the Women In Trucking Association (WIT), has announced the recipients of the 2023 Top Woman-Owned Businesses in Transportation. “There are many reasons to recognize female entrepreneurs, which is the reason Redefining the Road magazine launched the Top Woman-Owned Businesses in Transportation recognition program in 2017,” said Brian Everett, group publisher and editorial director of the magazine. “Six years later, WIT continues to recognize successful organizations in transportation that are led or owned by women.” Criteria used to identify qualified applicants include majority ownership by a woman, financial stability and growth, innovation and entrepreneurial spirit, according to Everett. Each company was nominated and chosen based upon business success and accomplishments including those related to gender diversity. Women-owned firms now comprise 30% of all businesses in the United States, and they’re generating approximately U.S. $1.5 trillion in revenue, according to the latest reports by American Express. ”Woman-owned businesses are on the rise, and with good reason,” said Jennifer Hedrick, president and CEO of WIT. “Women bring unique perspectives, skills and experiences to the businesses they lead, which can make them ideal business owners. The Women In Trucking Association continues to encourage female entrepreneurs to start and lead their own businesses, which can lead toward increased financial independence and create pathways for other women pursuing similar goals.” There is a broad range of company sizes named to the 2023 Top Woman-Owned Businesses in Transportation list, which is sponsored by Triumph, but all must generate a minimum of $5 million in gross annual sales, according to WIT. Companies named to the 2023 Top Woman-Owned Businesses in Transportation list and the primary female business owners are: 3 Sisters Logistics (Leslie Tarble, president) AGT Global Logistics (Angela Eliacostas, founder & president) Andy Transport, Inc. (Andreea Crisan, president & CEO) Aria Logistics LLC (Arelis Bonilla, CEO & president) Bennett Family of Companies (Marcia G. Taylor, CEO) Brenny Transportation, Inc. (Joyce Brenny, founder & CEO) Candor Expedite, Inc. (Nicole Glenn, founder & CEO) Garner Trucking (Sherri Garner Brumbaugh, president & CEO) Hassett Logistics (Michelle Halkerston, owner & CEO) Lineas 1o de Mayo, S.A. de C.V. (Blanca Mondragon, president) Powersource Transportation (Barb Bakos, president & CEO) Rihm Family of Companies (Kari Rihm, president & CEO) S-2international LLC (Jennifer Mead, founder & CEO) STARS HazMat Consulting (Wendy J. Buckley, president & CEO) Tucker Freight Lines, Inc. (Saunya Tucker, CEO) UFL Services, Inc. (Jennifer Behnke, co-owner & president) Youmans Transport, Inc., Evans Delivery Agent, Savannah (Sherry Youmans, president & owner) The 2023 Top Woman-Owned Businesses in Transportation will be recognized during a special program at the upcoming Women In Trucking Accelerate! Conference & Expo, which takes place Nov. 5-8 in Dallas. For more information, visit www.womenintrucking.org.

The cons of choosing insurance on cost alone

By Deborah Graves, OOIDA Truck Insurance Department It is easy to focus on the price of your insurance and let that guide your decision-making process when purchasing coverage. However, doing this could actually wind up costing you more in the long run. The most common question is: How much is my truck insurance going to cost? Let’s talk about the “how much” part of buying truck insurance. This is pretty important, especially in today’s economy. However, should you buy for price alone? You already know the answer. It is very rare to get “something for nothing,” so be suspicious when you’re given a price that seems far below the other quotes you’ve received. When purchasing insurance for your business, the idea is to get the most value for the premium you pay. You’ll need to consider the coverage you are getting for the price you are paying. Policy wording can be difficult to understand. Make sure your agent can answer all your questions. Also, make sure you are comparing “apples to apples” when purchasing your truck insurance. In order to get the best rates, be honest with your agent about your operation and your records, including your work history and your motor vehicle record. If you operate your business in a professional manner and remain loss-free, you should receive better rates. It’s important to consider what services you can expect for the money that you pay. For example, if you purchase primary liability and motor truck cargo and are required to maintain insurance filings, you should expect your agency to provide this service. Providing proof of insurance (certificates) in a quick and timely manner is definitely an agency service you should require. You should also expect an explanation of how to file a claim if you are involved in an accident. It’s not smart to select insurance for low rates if the company can’t (or won’t) provide good, timely service. Those lower premiums won’t help you at all when you can’t get loaded because of problems with your insurance. You can reach an OOIDA truck insurance agent Monday through Friday, from 7:30 a.m. to 5:30 p.m. CST, at 800-715- 9369. Do you have an insurance topic you would like to know more about? If so, email us at [email protected]. We will be covering a new topic each month and will do our best to address everyone’s questions.

ATA, Phillips announce corporate partnership

WASHINGTON — The American Trucking Associations (ATA) has announced that Phillips, an international firm that designs and manufactures components for the commercial truck and trailer industry, is now an ATA Featured Product Program Provider. “We are pleased to announce this partnership with Phillips. Phillips has been committed to supplying our industry with meaningful solutions for nearly 100 years. Today, Phillips offers cutting-edge technology and data analytics, giving fleets the ability to maximize the safety and efficiency of their operations,” said ATA Chief Commercial Officer Mario Grande. “This partnership provides ATA members even greater access to Phillips’ products, allowing them to optimize services and improve their ROI.” The Phillips Family consists of three distinct companies — Phillips Industries, Phillips Innovations and Phillips Connect — “who unite to deliver cutting-edge solutions to the commercial truck and trailer industry,” according to an ATA news release. “Phillips Industries excels in manufacturing electrical and air brake system components. Phillips Innovations spearheads the development of sustainable technology and trailer vision products. Phillips Connect specializes in providing advanced connected asset solutions that go beyond basic GPS tracking, utilizing seamless integration and IoT sensor technology extensively utilized in the freight industry.” Phillips’s primary focus revolves around enhancing safety, security, cost efficiency and asset utilization, the news release noted. “I am thrilled to announce that we have become members of the American Trucking Associations,” said Rob Phillips, CEO and president of Phillips Industries, CEO and founder of Phillips Connect and Phillips Innovations. “The ATA is an influential organization, representing the collective voice of the trucking industry with its impressive membership of over 37,000 dedicated individuals committed to safety, sustainability and efficiency.” Phillips added: “Our affiliation with the ATA reinforces our commitment to supporting our industry and delivering optimal solutions for the future. We anticipate collaborating closely with the ATA and its members to drive ongoing advancements within the trucking sector.”

Teamsters: US trucking firm Yellow notifies it of shutdown, bankruptcy

WASHINGTON — The Teamsters said on Sunday, July 30, that the union was served a notice that Yellow Corp is ceasing operations and filing for bankruptcy, leaving 30,000 workers in limbo. “Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters General President Sean M O’Brien said in a statement. Earlier in the day, the Wall Street Journal reported about the closure of the trucking firm’s operations which cited notices sent to customers and employees. Last week, WSJ also reported that the company has laid off a large number of workers. Earlier this month Yellow averted a threatened strike by 22,000 Teamsters-represented workers, saying the company will pay the more than $50 million it owed in worker benefits and pension accruals. The company said on Thursday it is exploring opportunities to divest its third party logistics company Yellow Logistics Inc, and is engaged with multiple interested parties. Its customers include large retailers like Walmart and Home Depot, manufacturers and Uber Freight, some of which have paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier went bankrupt. In 2020, the Donald Trump-led government rescued the company with a $700 million pandemic relief loan in exchange for a 30% stake. Yellow did not immediately respond to a request for comment. WHAT WOULD BANKRUPTCY MEAN FOR YELLOW? According to Satish Jindel, president of transportation and logistics firm SJ Consulting, Yellow handled an average of 49,000 shipments per day in 2022. Last week, he estimated that number was down to between 10,000 and 15,000 daily shipments. With customers leaving — as well reports of Yellow stopping freight pickups last week — bankruptcy would “be the end of Yellow,” Jindel told The Associated Press, noting increased risk for liquidation. “The likelihood of them surviving and remaining solvent diminishes really by the day,” added Bruce Chan, a research director at investment banking firm Stifel. Yellow declined to comment when contacted by The Associated Press on Friday. In a Wednesday statement to The Journal, the company said it was continuing “to prepare for a range of contingencies.” On Thursday, Yellow said it was in talks with multiple parties about selling its third-party logistics organization. Even if Yellow was able to sell its logistics firm, it would “not generate a sufficient amount of cash to keep them operational on any sort of permanent basis,” Chan said. “Without a major equity injection, it would be very difficult for them to survive.” HOW MUCH DEBT DOES YELLOW HAVE? As of late March, Yellow had an outstanding debt of about $1.5 billion. Of that, $729.2 million was owed to the federal government. In 2020, under the Trump administration, the Treasury Department granted the company a $700 million pandemic-era loan on national security grounds. Last month, a congressional probe concluded that the Treasury and Defense Departments “made missteps” in this decision — and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.” New York City crane collapse linked to company and operator with history of safety violations The government loan is due in September 2024. As of March, Yellow had made $54.8 million in interest payments and repaid just $230 million of the principal owed, according to government documents. Yellow’s current finances and prospect of bankruptcy “is probably two decades in the making,” Chan said, pointing to poor management and strategic decisions dating back to the early 2000s. “At this point, after each party has bailed them out so many times, there is a limited appetite to do that anymore.” In May, Yellow reported a loss of $54.6 million, a decline of $1.06 per share, for its first quarter of 2023. Operating revenue was about $1.16 billion in the period. A Wednesday investors note from financial service firm Stephens estimated that Yellow could be burning between $9 million and $10 million each day. Using a liquidity disclosure from earlier this month, Yellow had roughly $100 million in cash at the end of June, the note added — estimating that the company has been burning through increasing amounts of money through July. “It is reasonable to believe that the Company could breach its $35 mil. liquidity requirement at any moment,” Stephens analyst Jack Atkins and associate Grant Smith wrote. The Associated Press and The Trucker Staff contributed to this report.

Yellow Corp. lays off workers, tells others situation looks ‘increasingly bleak’ for survival

WASHINGTON —U.S. trucking firm Yellow has laid off a large number of workers as the company copes with a cash crunch and weighs options including an imminent bankruptcy filing, people familiar with the actions told the Wall Street Journal on Friday, July, 28. The layoffs include members of the company’s sales force, business operations and technology departments, the report said, adding that Yellow’s unionized drivers and freight handlers weren’t part of the downsizing. The third-biggest U.S. trucking company, which has been in ongoing negotiations with union of Teamsters-represented workers regarding worker benefits and pension accruals, averted a threatened strike on Sunday. Yellow has not yet responded to inquiries about the company’s situation. In a memo issued to local unions representing teamsters working at Yellow Corp.’s YRC Freight, Holland, New Penn and Reddaway, Teamsters officials told employees on Friday, July 28, that Yellow’s survival looks “increasingly bleak.” “As we explained in yesterday’s communication, Teamsters National Freight Industry Negotiating Committee and the International Brotherhood of Teamsters have been working hard to help find a solution to fix Yellow’s financial mess and to help it secure financing to enable it to continue in operations,” according to the memo. “While we are continuing to do so, we have no good news to report, and the likelihood that Yellow will survive is increasingly bleak.” The memo further states that “Yellow continues to clear its system, and it appears to be laying off personnel and closing entire terminals across the country. All Yellow employees should, in our opinion, prepare for the worst, as Yellow appears to be headed to a complete shutdown within the next few days. We recommend that all Yellow employees who have personal belongings and tools at the terminals should take them home today. That way, in case Yellow does shut down over the weekend or next week, the employees’ property will not get lumped in with Yellow’s property and get locked up in a bankruptcy or liquidation proceeding that could result in the employees not recovering their personal property.” Reuters contributed to this report.

Yellow begins ‘exploring opportunities’ to divest its 3PL arm as bankruptcy concerns loom

NASHVILLE — Yellow Corp. executives say they are exploring opportunities to divest their “successful 3PL, Yellow Logistics Inc.” unit. This news comes just a day after reports that Yellow Corp. is preparing to file for bankruptcy. Jason Bergman, president of Yellow Logistics and chief commercial officer at Yellow Corp., didn’t discuss the company’s financial woes in a Thursday, July 27, news release; instead, he stated that “Yellow Logistics is one of the fastest growing 3PLs in the industry and has been since its inception. Yellow Logistics has proven to be a strategic and reliable partner to its customers and providers.” Bergman added that “Our deep knowledge of moving freight in multiple modes and knowing how to execute on these solutions reliably and within customers’ budgets adds value and strengthens their supply chains. We are enthusiastic about our team’s ability to help customers accelerate growth for their portfolios.” The Wall Street Journal reported on Wednesday, July 26, that customers are abandoning Yellow amid a cash crunch and union negotiations. The company could seek bankruptcy court protection soon, according to the report, though no decision has been made. The report cited “people familiar with the matter.” A company spokesman told The Trucker that “Talks with the International Brotherhood of Teamsters are ongoing. As previously stated, in keeping with the fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies.” On Sunday, July 23, the third-biggest U.S. trucking company averted a threatened strike by 22,000 Teamsters-represented workers after compensating more than $50 million it owed in worker benefits and pension accruals. Its customers include large retailers like Walmart and Home Depot, manufacturers and Uber Freight, some of which have paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier goes bankrupt. Yellow has said the strike threat over missed benefits payments is what caused freight to leave its network. Yellow and Teamsters are still at odds over wages, and work flexibility rules, among other things. According to Yellow’s most recent news release, the company “is currently engaged with multiple interested parties regarding the sale of its independent third-party logistics organization. The discussions are active and ongoing. Yellow Logistics is a customer-specific logistics solution provider that specializes in truckload, residential, contract logistics, engineered solutions, distribution and warehousing and is operated through an independent, non-union subsidiary of Yellow.” Yellow Logistics continues to operate and has the full support of the Yellow organization, the news release stated, noting that the company “will continue to service our customers, protect our vendors and Yellow Logistics employees.” In 2020, the Donald Trump led government rescued the company with a $700 million pandemic relief loan in exchange for a 30% stake.

Freight rates, volumes poised to rise as fears of recession fade

The bottom. That’s what trucking industry freight forecasters are claiming has been reached. The DAT Truckload Volume Index for June was titled “June signals that spot rates have hit bottom.” The Cass Freight Index press release used “Bouncing along the bottom.” At ACT Research, the chosen title was “US freight market bouncing along the cycle bottom.” Truckers who depend on the spot freight market for most (or all) of the loads they haul might be comforted by the thought that this should be as bad as it gets. That’s small consolation, however, to those who have had to shut down equipment, laid off drivers or closed their doors, in part due to poor freight rates. The Cass Freight Index for Shipments reported June shipment numbers dropped 1.6% from May, which works out to 1.9% when seasonally adjusted. Year over year, shipment numbers dropped by 4.7%, and by 6.8% over the past two years. The Cass Freight Index for Expenditures, the amount spent for all shipments, declined by 2.6% in June and by a whopping 24.5% from June 2022 expenditures. Obviously, when there are fewer shipments, the total amount of money spent on them will also decline. However, when the number of shipments drops and the cost per shipment also drops, the negative numbers get worse. The Cass release specifies declining retail sales and ongoing destocking as the “primary headwinds. The good news, according to the Cass report, is that the economy is coming out of the worst of it. The report also states the current downcycle saw its first decline 18 months ago. That’s significant when we consider that the past three downcycles have lasted 21 to 28 months. The implication, of course, is that we’re getting close to the beginning of the next upcycle for freight rates. It’s important to note that, although expenditures have fallen from the historic high point achieved mid-last year, they have not fallen below rates in the first third of 2021 — and they are still higher than the years prior. Unfortunately, expenses are also up, so all is relative. The Cass Indexes for Shipments and Expense are calculated from billing information Cass processes for its customers and represents multiple modes of transportation, including truckload and less-than-truckload shipping, rail, parcel, pipeline and more. Trucking comprises more than half of the dollars spent. “The volume downturn appears to be in the later innings and, after a long soft patch, we see the U.S. freight transportation industry on the cusp of a new cycle,” said Tim Denoyer, vice president and senior analyst at ACT Research, who writes the Cass report. Denoyer is referring to the Classic Truckload Cycle that shows the correlation between truck sales, rates and shipment volumes. A new cycle begins as the market adjusts to lower freight volumes by shedding trucks, reducing the supply of available transportation to the demand of shipment numbers. The current, “bottoming” cycle hits full swing when the number of available trucks exceeds available freight, driving competition for freight up and rates down. The nontypical part of the cycle picture now is that truck sales numbers are still high, but orders for more new trucks have slowed and more used trucks are hitting the market as carriers trade or turn in equipment. ACT Research’s June Freight and Transportation Forecast pointed out two related statistics for June. The U.S. Bureau of Labor Statistics reported employment of long-distance drivers is increasing in 2023. At the same time, the U.S. Department of Transportation is reporting record numbers of authority revocations for the same period. Clearly, many drivers and carriers who purchased trucks to take advantage of rising spot freight rates two years ago have sold those trucks or let them go to the financing authority and re-entered the labor market. Fewer owner-operators equals more company drivers. DAT, the country’s largest load board, reported freight volumes and spot rates for loads held firm in June while contract rates continued to fall, reaching their lowest point in almost two years. “The gap between spot and contract rates was the narrowest since April 2022,” said Ken Adamo, chief of analytics for DAT. “Rates for van and refrigerated freight increased for the third straight month, and volumes were almost unchanged from May. These are signs that spot truckload prices have reached the bottom of the current freight cycle.” DAT reported van spot rates rose by an average of three cents per mile. That’s the first increase in five months. Spot refrigerated rates also rose by three cents per mile, while flatbed rates declined by two cents. Keep in mind that averages are just that — averages — and rates in some areas may have risen more while declining in other areas. One potential boon for the truckload industry could be the labor strife between the Teamsters union and UPS. As of this writing, a strike is expected. Should it occur, UPS may need to hire carriers to continue some of its linehaul operations, adding loads to the system. As those loads tie up some of the available equipment, spot rates for other loads could rise as competition becomes lower. However, there is no way to predict how large the impact of a UPS strike might be. Adamo addressed this in the DAT report, saying, “Demand for truckload services typically slows at this time of year, but this could change quickly given the threat of strikes in the parcel and less-than-truckload sectors. Shippers are putting contingency plans in place and would look to freight brokers and carriers on the spot market to keep their line haul operations moving. Demand for trucks would jump, especially around Louisville, Memphis, Indianapolis, Dallas and other major parcel hubs.” Kenny Vieth, ACT’s president and senior analyst, predicts improvements in the near future. “The upward forecast revisions reflect our view that macroeconomic positives will increasingly outweigh negatives as the calendar advances into 2024,” Vieth said. “Next year inventory accumulation should inflect to a freight tailwind, from the current destocking headwind.” Clearly, analysts believe the U.S. freight market is poised to begin an upward trend. Exactly when that will happen is up for debate, but there should be some comfort in the thought that things won’t get worse.

Truckstop partners with GoodShip

BOISE, Idaho — Truckstop’s Rate Insights division has announced a partnership with GoodShip, an all-in-one platform for transportation procurement. According to a news release, the deal will allow “operations teams to optimize freight spend and on-time performance while streamlining workflows and strengthening carrier relationships.” GoodShip will utilize spot market rate data from the Truckstop Rate Insights tool within its smart recommendation engine, providing shippers with contextualized, actionable insights about their carrier network’s performance and cost, the news release noted. GoodShip users will also be able to run procurement events in-platform and compare incoming bids to current and predicted market rates provided via the Truckstop API. “We are excited to partner with GoodShip to put more pricing data in the hands of logistics decision makers and enable more agile, resilient supply chains,” said Julia Laurin, chief product officer at Truckstop. “We believe that our rates offering provides analysis of load details that is currently unmatched in the industry which makes for a more accurate output.” Truckstop’s Rate Insights uses machine learning and artificial intelligence to provide same-day rate estimates at the load level. Carriers, brokers and shippers can access daily market rates specific to load attributes, including equipment type, location and dates. “In a market as volatile as freight, resilience and agility are one and the same,” said Ryan Soskin, chief executive officer, GoodShip. “The ability to gather, interpret, and instantly action data is what transforms supply chains from a cost center into a competitive advantage. Layering in market insights from providers like Truckstop with GoodShip’s procurement and negotiation tooling presents a clear, transformative win for shippers.”

Used Class 8 rigs see solid June sales

COLUMBUS, Ind. — According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail volumes (same dealer sales) improved again in June, though by a narrower margin at +1.8% month-over-month. Average mileage increased 2%, with average price down 1% and age 2%. Longer term, average volumes jumped 19%, price and age dropped 26% and 9%, respectively, and miles was flat. “Sales usually increase 4%-5% in June, so the increase was not unexpected in that regard,” said Steve Tam, Vice President at ACT Research. He continued, “However, in the context of the current freight market, and amid all the press regarding fleets going out of business, it may seem a little counterintuitive.” Tam said that there is a net decline in the number of fleets with operating authority, “but it is important to remember fleets are both entering and exiting operation daily. It is, in part, that churn that is driving the better-than-expected sales volumes. In addition to the churn, more inventory is affording carriers an opportunity to refresh their fleets with younger used trucks.” Tam concluded, “As the year progresses, the year-to-date picture continues to differentiate itself from last year. The overall market extended its lead to 17% year-to-date. It is important to note that we do not believe the broader market has expanded by this amount. Rather, the dealers who participate in our database have likely increased their market share penetration.” The increase in sales of used Class 8 rigs was not wholly unexpected, as the month typically sees solid business, according to ACT Research.

UPS deal burnishes US Teamsters leader’s image as one ‘tough SOB’

LOS ANGELES — The head of the Teamsters union stared down UPS with a potential multibillion-dollar strike that could have damaged the U.S. economy but instead won gains for workers, and he is proud to be called “SOB.” Sean O’Brien, elected general president of the International Brotherhood of Teamsters in 2021, appears to have lived up to his handle of @TeamsterSOB on the social media platform formerly known as Twitter with the Tuesday announcement of a tentative contract deal with United Parcel Service. Of course, that nickname started with his mother, who called her middle son by his initials, he said in an interview before the UPS deal was announced. Those same initials can also serve as a rather impolite term for a tough individual or son of a gun. O’Brien had warned UPS ahead of the deal not to “go down the road of being greedy, being more loyal to Wall Street than Main Street.” The world’s biggest package delivery firm agreed to “historic wage increases” in a “no concessions” deal demanded by the union, according to O’Brien, who said the contract would set a new standard in the labor movement and raise the bar for all workers. “Workers across the country are sick of big corporations taking advantage of them,” said O’Brien, a fourth-generation Teamster trucker who has chalked up deals with UPS and trucking firm Yellow in just the last few days. O’Brien crisscrossed the country in the weeks ahead of a threatened UPS strike on Aug. 1, fortifying Teamster members’ resolve with “practice” pickets and profanity-punctuated speeches. That strike threat was too big to ignore. UPS moves about 20 million packages a day, or roughly a quarter of all such shipments in the U.S. One estimate put the cost of a 10-day strike at UPS more than $7 billion. “Nobody wants a strike,” Massachusetts AFL-CIO President Steven Tolman, who has known O’Brien for three decades, said ahead of the settlement. “It takes a real leader to be willing to do that.” IN THE VANGUARD O’Brien is in the vanguard of a new generation of union leaders seeking to capitalize on the opportunity presented by a historic shift in U.S. labor markets, analysts said. “Unions used to be on the defensive,” said John Logan, labor professor at San Francisco State University, who called the more militant, anti-corporate stance taken by the likes of O’Brien, United Auto Workers President Shawn Fain and Association of Flight Attendants-CWA President Sara Nelson “a sign of the times.” Nelson cheered on O’Brien after the UPS deal in a statement, calling the right to strike the “only countervailing force to capitalism that is otherwise unchecked … This is how it’s done!” UPS workers have until Aug. 22 to vote on the tentative deal. O’Brien, 51, who wears a Teamsters horses tattoo from his hometown Boston Local 25 on his right bicep, hopes to parlay that pact into success in organizing at other companies, most notably at Amazon.com warehouses. RALLIES AND ROLLBACKS O’Brien swept to victory at the Teamsters in 2021 with a promise to end an era of concessionary deals that he felt eroded pay and benefits for members, especially at UPS – which employs more Teamsters than any other U.S. company. Workers there were fuming about a 2018 contract that established a two-tier pay system for delivery drivers. Members rejected the contract, but union leadership pushed it through by invoking a constitutional provision that kicked in when less than 50% of members voted, said Steve Striffler, director of the University of Massachusetts-Boston Labor Resource Center. That crystallized into a more hardline sentiment during the pandemic. Union officials argued that UPS workers risked their lives delivering COVID-19 vaccines before they were eligible to get the shot, only to be worked to exhaustion and in some cases for less pay than new hires. Under O’Brien, the Teamsters eliminated the constitutional provision at the center of worker frustration. And, if approved, the latest UPS agreement will roll back two-tier pay for delivery drivers and give significant wage increases to experienced part-timers who in some cases were making the same or less than new employees. “We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession,” O’Brien said.

Reports: Yellow preparing for bankruptcy

OVERLAND PARK, Kan. — U.S. trucking firm Yellow is preparing to file for bankruptcy, the Wall Street Journal reported on Wednesday, July 26, as customers abandon the company amid a cash crunch and union negotiations. The company could seek bankruptcy court protection as soon as this week, though no decision has been made, the report said, citing people familiar with the matter. A company spokesman told The Trucker that “Talks with the International Brotherhood of Teamsters are ongoing. As previously stated, in keeping with the fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies.” On Sunday, July 23,, the third-biggest U.S. trucking company averted a threatened strike by 22,000 Teamsters-represented workers after compensating more than $50 million it owed in worker benefits and pension accruals. Its customers include large retailers like Walmart and Home Depot, manufacturers and Uber Freight, some of which have paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier goes bankrupt. In 2020, the Donald Trump led government rescued the company with a $700 million pandemic relief loan in exchange for a 30% stake. The Trucker Staff contributed to this report.

Nuclear reaction: Report shows trucking companies ‘under siege’ by costly lawsuits

WASHINGTON — A report  from the U.S. Chamber of Commerce’s Institute for Legal Reform says the trucking industry is under siege by litigation. High-dollar verdicts in trucking accident cases — often referred to as nuclear verdicts — accelerated in size starting in the 2000s but have skyrocketed over the past decade, despite a decreased rate of serious trucking crashes over that time frame, according to the report. “Moreover, with the inflation of verdicts and settlements, the search for deep pockets is expanding and the circle of potential defendants is widening,” the report states. “This paper documents the dramatic increase in trucking accident litigation awards across the board, including an analysis of recent verdicts and settlements to document the continuing trend.” A review of 154 trucking litigation verdicts and settlements from June 2020 through April 2023 reveals a mean plaintiffs’ award of $27,507,334 and a median award of $759,875. For settlements, the mean award was $10,608,219, and the median award was $210,000. Although the means are driven up by a handful of extreme verdicts and settlements, trucking companies and insurers alike must account for these significant risks. The paper then discusses the impact of these inflated verdicts on the industry, consumers and the economy. The most recent nuclear verdict came down just this month when an Indiana jury awarded a couple $44 million stemming from a 2016 accident that caused serious injuries to Cynthia Kroft. According to court documents, Kroft suffered a spinal cord injury after her vehicle was hit from behind by a semi truck driven by Pedrag Radisavljevic for Viper Trans Inc. According to the court, Viper, along with PR Rentals Inc., admitted negligence in the case but questioned the extent of Kroft’s injuries. The companies challenged a 2021 verdict that awarded the couple $43.5 million. During the recent retrial on July 14, the second jury added $500,000 to the initial settlement. “We much appreciate the jury’s service and are very grateful to Judge Joan Powell, who worked tirelessly to give the parties a very fair and efficient trial,” said attorney Kenneth J. Allen, who represented Kroft. “The Krofts are an amazing couple, and the jury’s verdict recognizes the enormity of their loss — although no amount of money is sufficient to compensate them for what they’ve been through.” No response was received to messages left by The Trucker requesting comment from Kevin Schifrel, Radisavljevic’s attorney. Turning back to the research: The findings explore various factors driving the litigation trend, most of which are tactical litigation tools that drive up verdicts. These tactics include: Medical referral networks and inflated billing practices. “Reptile” courtroom tactics by plaintiffs’ lawyers. Reptile tactics can be used to present evidence alleging a trucking company’s negligence despite the company admitting responsibility for the driver’s negligence, if any. By doing so, the jury may “assess the (trucking company’s) liability twice or award duplicative damages to the plaintiff.” A widening circle of defendants to reach deeper pockets. An ambitious and exploitable standard of care for trucking operations. The paper then notes the most problematic jurisdictions across the country for trucking litigation. Some jurisdictions are notoriously worse than others, making solutions ever more critical for the consumers in those jurisdictions. After examining these trends and the factors behind them, the paper concludes by offering a number of solutions that could help prevent the unreasonable inflation of trucking industry verdicts and settlements, while at the same time preserving a civil justice system that effectively provides for prompt, just and reasonable compensation for those involved in trucking accidents. These solutions, according to the report, would: Require transparency in claiming medical damages. Legislation should limit medical damages to reasonable and customary amounts actually paid instead of inflated amounts billed. State legislatures or courts should ensure evidence of referral relationships indicating bias or conflict of interest is disclosed and available to juries. Law enforcement and professional ethics regulatory bodies should take a more active role in prosecuting fraud or unethical behavior, respectively. Prohibit the presentation of inflammatory arguments if a defendant trucking firm stipulates responsibility for a driver’s negligence. To ensure awards are tied to reasonable compensation, policymakers and judges should ensure that evidence and arguments intended to inflate the verdicts do not get presented to the jury. Courts and legislatures should generally prohibit the presentation of evidence on derivative theories of negligence where a trucking company has stipulated responsibility for its driver’s negligence, if any. Allowing such evidence inflames juries and promotes an additional, duplicative assessment of fault against a company. Create reasonable caps on non-economic damages. Non-economic damages, e.g., compensation for pain and suffering, are admittedly difficult to quantify but are an increasingly large portion of verdicts and settlements than more objective damages, like medical expenses for treatment. Prohibit the practice of “anchoring.” Courts should ensure non-economic damages are supported by evidence and not arbitrarily chosen. Judges (and state legislatures if judges fail to) should prohibit unsubstantiated anchoring, where an award suggestion is argued without evidence simply to plant the number in the jury’s minds. Permit evidence of non-use of seat belts by plaintiffs in damages calculations. The duty to mitigate damages has long been a component of the common law of torts. With seat belt use mandatory in 49 states, states that do not currently permit evidence of the non-use of seat belts in damages calculations should do so. The goals of a properly functioning civil justice system are not advanced by compensating for serious injuries that may have been avoided or mitigated by compliance with a seat belt law. Clarify the standard of care for motor carrier selection and failure-to-equip claims. Policymakers and judges should defer to federal agencies with a safety remit in deciding whether contracting with a motor carrier is reasonable or whether a truck is properly equipped. Ultimately, the report notes, “A multi-pronged effort is necessary to address the negative impacts of … actions while still providing compensation for reasonably incurred and medically appropriate care. “The trucking industry strives for safe performance, but accidents that are the fault of the trucking company, although infrequent, do happen,” the report continues. “In those instances, the civil justice system should work to efficiently provide a reasonable compensatory award.” Doug Marcello, an attorney who specializes in defending big rig drivers and trucking companies following accidents, believes fleets should be more willing to try cases. “The looming specter of a nuclear verdict has created a fear to take cases to trial,” he said. “Statistically, even before this nuclear era, only 5-10% of lawsuits were decided by trial. I believe it is even less now.” Marcello noted that “trial trepidation” often happens out of fear that a nuclear verdict could bankrupt a company. “Are trials a risk? To an extent, yes,” he said. “Should all cases go to trial? Not necessarily. But must all cases settle before trial? Absolutely not. Doing so will send a message that you will cave, no matter how outrageous the demand. And, as we know, word gets around.”

Big rig trailer customers, dealers endure bumpy conditions in June

COLUMBUS, Ind. — According to ACT Research’s State of the Industry: U.S. Trailers report, clouds on the trailer-market horizon bear watching, while simultaneously recognizing this is the seasonally weakest time of the year for forward-looking metrics. “As expected, production outpaced orders again in June, dropping trailer backlogs 12% sequentially and 10% year-over-year. Dry van, reefer and flatbed backlogs were down month-over-month, while dumps were higher, as net orders slightly outpaced build in that segment,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research. She explained that “Despite the big sequential drop in trailer backlogs, the seasonally adjusted backlog-to-build ratio shed a modest 20 basis points, to 7.1 months in June from May’s 7.3-month level and 8.5 months from last June. While lower, the current backlog essentially commits the industry into the beginning of 2024.” Regarding cancellations, McNealy stated: “Fleet commitments remained mixed in June. Total cancels dropped to 2.8% of backlog, from May’s 4.2% rate. OEMs are still reporting that most cancellations are coming from the dealer network, although fleet and model-year cancellation-rebooks are being reported as the 2024 orderboards begin to open and slots get pushed.” Conversations with industry stakeholders over the past few weeks “revealed that while they remain relatively optimistic about 2024, there was an acknowledgement of increasingly challenging conditions for customers and dealers,” McNealy concluded.

It’s a woman’s world: Women taking advantage of opportunities in trucking

Remember the very first time you drove a car? You were eager, but scared, too. You did a quick check of control systems — steering, brakes, where the pedals were. Hands clamped on the wheel, you began moving forward, a little shaky at first … but you were moving. Mistakes were made along the way, but in no time at all, you were operating that car with confidence and wondering why you were ever nervous about it. This scenario could be about your first solo ride on a bicycle, or maybe about the first time you piloted a boat across the water. For many truck drivers — and for increasing numbers of women who are entering the profession — that scenario describes their first time driving a big rig. In the “olden” days, women truck drivers were rare. Trucks were noisy and dirty and driven by men with strong arms, since there was no power steering. Other tasks, like cranking up trailer supports and pulling fifth-wheel pins, took muscle. When the long day was done, drivers sometimes slept on boards placed across the seats in trucks, without air conditioning and sometimes with inadequate heat. Truck stops weren’t equipped for women, either. The ones that had showers provided a grubby space that looked like the boys’ locker room in high school — one room with multiple shower heads that all the men used. Those days are long gone. Trucks today have power steering, automated transmissions and climate-control systems that rival some homes. Sleeper berths have comfortable beds, storage space and, often, refrigerators, televisions and all kinds of comforts. In addition, most truck stops have clean, lockable, private showers that can be used by anyone. Many women are taking advantage of the opportunities offered by a career in trucking. A chief benefit is the short training time before earnings begin. Many CDL schools offer training that can be completed in three weeks; however, trucking companies that hire recent graduates usually require more training that may be paid at a reduced rate. The cost of CDL school can be attractive, too. Some carriers run their own CDL schools and/or contract with private CDL schools to pay the tuition of graduates who hire on with their company. Additional training, often called “driver finishing,” is usually paid. In most cases, the carrier agreement to pay for schooling includes an obligation for the new driver to remain employed with that carrier for a period of time. This can range from as little as eight months at some carriers to 24 months or longer. People who choose a career in trucking can earn $60,000 or more in their first year of employment. The Women In Trucking (WIT) Index surveys both publicly and privately held trucking carriers in addition to companies associated with the trucking industry. The 2023 survey reported that 12.1% of the driving force in surveyed carriers was comprised of women. Survey respondents reported a total of 470,000 total drivers — and nearly 46,900 of those are female. Many over-the-road (OTR) trucking jobs require time away from home. Jobs that get the driver home weekly are common, but some jobs may keep drivers out several weeks at a time. That’s a consideration for any driver, and for some women, especially single parents, this roadblock can be insurmountable. If, however, a new driver can complete the obligation required to pay for training and maintain a safe record, local opportunities may open up that get the driver home every day. Local jobs can include delivery of food, beverages or other retail items, fuels, construction materials or the pickup of trash and other tasks. The pay for local jobs is often a step down from that earned over the road because of the popularity of those jobs — but it’s still better than fast food or local retail positions. The less-than-truckload (LTL) segment of trucking may offer “out-and-back” driving opportunities hauling packages between sort locations. Depending on the company, location and company needs, there may be a requirement to work on the dock or run local pickup and delivery routes before a linehaul opportunity is offered. These positions generally pay well and provide good benefits. For women who want to come off the road but remain in the trucking industry, numerous opportunities exist and may be abundant for those who live in the right locales. The 2023 WIT Index reported that 43.5% of dispatchers are women. In addition to many roles traditionally held by men, trucking companies have many of the same office positions as companies in other industries. Many offer opportunities in finance, sales, management and clerical opportunities, and many women fill executive positions for trucking companies and industry-related businesses. One segment of the industry where the percentage of women is growing is truck maintenance technicians. According to the American Trucking Associations (ATA), there is a severe shortage of technicians to keep trucks rolling. The ATA predicts that the need for technicians will rise from the current 242,200 to more than 442,000 in the next 10 years. As vehicles powered by electricity and other alternative fuels become more prevalent in the industry, technicians will be needed for those, too. Like driving positions, some carriers are willing to fund the education needed to qualify for technician jobs. Many carriers will bring on minimally qualified technicians, providing time and funding for them to grow their skills while earning a paycheck. According to the WIT Index, survey respondents reported that 7.5% of their technicians are female. Women seeking a career with good pay and benefits are looking to the trucking industry in ever-increasing numbers, and with good reason. There is a wide variety of positions available, training time and expense compare very favorably to other industries, and many of the skills are portable. Drivers, for example, are needed in every state so a qualified driver can quickly find work if the family moves. If you are a woman in need of a career change, the trucking industry could deliver just the job you’re looking for.

No strike: UPS, Teamsters reach agreement

NEW YORK — UPS reached a contract agreement with its 340,000-person union on Tuesday, July 25, averting a strike that had the potential to disrupt logistics nationwide. “Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,” said Carol Tomé, CEO of UPS. “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.” The agreement was announced after UPS and the Teamsters came back to the negotiating table to discuss — and hopefully resolve — issues in the largest private-sector contract in North America. Both sides had already reached tentative agreement on a host of issues but remained at odds on things like pay for part-time workers, who make up more than half of the UPS employees represented by the union. The Teamsters called the tentative agreement “historic” and “overwhelmingly lucrative” in a news release. The agreement includes, among other benefits, higher wages and air conditioning in delivery trucks. “Rank-and-file members served on the committee for the first time, so we got to show up every day to support our fellow Teamsters and share their stories,” said Brandy Harris, a part-time UPS Teamster with Local 174 in Seattle and a member of the Teamsters National Negotiating Committee. “Our hard work has paid off — from those members and leaders negotiating for more at the table to my sisters and brothers building a credible strike threat around the country. Our union was organized, and we were relentless. We’ve hit every goal that UPS Teamster members wanted and asked for with this agreement. It’s a ‘yes’ vote for the most historic contract we’ve ever had.” Teamsters General President Sean M. O’Brien said, “Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. Teamster labor moves America.” O’Brien added: “The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it. UPS has put $30 billion in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers.” Teamsters General Secretary-Treasurer Fred Zuckerman said UPS came dangerously close to putting itself on strike. “But we kept firm on our demands,” he said. “In my more than 40 years in Louisville representing members at Worldport — the largest UPS hub in the country — I have never seen a national contract that levels the playing field for workers so dramatically as this one.” Highlights of the tentative 2023-2028 UPS Teamsters National Master Agreement include historic wage increases: Existing full- and part-time UPS Teamsters will get $2.75 more per hour in 2023, and $7.50 more per hour over the length of the contract. Existing part-timers will be raised up to no less than $21 per hour immediately, and part-time seniority workers earning more under a market rate adjustment would still receive all new general wage increases. General wage increases for part-time workers will be double the amount obtained in the previous UPS Teamsters contract — and existing part-time workers will receive a 48 percent average total wage increase over the next five years. Wage increases for full-timers will keep UPS Teamsters the highest paid delivery drivers in the nation, improving their average top rate to $49 per hour. Current UPS Teamsters working part-time would receive longevity wage increases of up to $1.50 per hour on top of new hourly raises, compounding their earnings. New part-time hires at UPS would start at $21 per hour and advance to $23 per hour. Other provisions include: All UPS Teamster drivers classified as 22.4s would be reclassified immediately to Regular Package Car Drivers and placed into seniority, ending the unfair two-tier wage system at UPS. Safety and health protections, including vehicle air conditioning and cargo ventilation. UPS will equip in-cab A/C in all larger delivery vehicles, sprinter vans, and package cars purchased after Jan. 1, 2024. All cars get two fans and air induction vents in the cargo compartments. All UPS Teamsters would receive Martin Luther King Day as a full holiday for the first time. No more forced overtime on Teamster drivers’ days off. Drivers would keep one of two workweek schedules and could not be forced into overtime on scheduled off-days. UPS Teamster part-timers will have priority to perform all seasonal support work using their own vehicles with a locked-in eight-hour guarantee. For the first time, seasonal work will be contained to five weeks only from November-December. The creation of 7,500 new full-time Teamster jobs at UPS and the fulfillment of 22,500 open positions, establishing more opportunities through the life of the agreement for part-timers to transition to full-time work. More than 60 total changes and improvements to the National Master Agreement — more than any other time in Teamsters history — and zero concessions from the rank-and-file.

Spot rates show uniform weakness for another week

BLOOMINGTON, Ind. — Spot rate weakness continued in the latest week, but July typically sees lower rates after late June strength, according to Truckstop. Broker-posted rates in the Truckstop system fell for all equipment types during the week ended July 21 (week 29), although the decreases for the van segments were smaller than they had been in the prior week. Historically, spot rates for dry van and refrigerated equipment flatten out by the end of July, so the next several weeks will be key in assessing the market’s strength. Loads available Total load activity declined 6.7% after rebounding nearly 34% during the week following the Independence Day holiday week. Volume was about 36% below the same week last year and about 27% below the five-year average. Aside from the holiday week, load volume in the latest week was the lowest since Thanksgiving week last year. Volume was up on the West Coast but down in all other regions. Truck postings increased 2.7%, and the Market Demand Index – the ratio of loads to trucks – fell to its lowest level since Thanksgiving week. Total rates  The total broker-posted rate declined about 6 cents for the eighth straight weekly decrease. The total market rate was nearly 22% below the same 2022 week and more than 7% below the five-year average. Rates are still moving in a seasonal manner, but they had been holding close to the five-year average until June. Once again, the total market rate in the latest week was the lowest since August 2020. Dry van Dry van spot rates declined 3.6 cents after falling about 8 cents in the previous week. Rates are about 8 cents above the bottom – at least so far – that occurred during the week before May’s International Roadcheck event. Dry van rates were about 20% below the same 2022 week and 11% below the five-year average. Dry van loads declined 2% after recovering about 25% during the week after the holiday week. Volume was 27% below the same week last year and about 17% below the five-year average for the week. Reefer Refrigerated spot rates eased just over 3 cents after decreasing about 5 cents during the week following the holiday week. Rates are only about 4 cents above the level during the week before International Roadcheck, although the recent bottom occurred in mid-April. Rates were about 14% below the same 2022 week and nearly 9% below the five-year average for the week. Refrigerated loads ticked up 1.4% after rebounding 17% during the week following the holiday week. Volume was 26% below the same week last year and about 17% below the five-year average for the week. Flatbed Flatbed spot rates fell about 6 cents after decreasing 4.6 cents during the previous week. Rates were at their lowest level since December 2020 and were nearly 25% below the same 2022 week and about 6% below the five-year average. Flatbed loads fell 12.7% after jumping nearly 46% during the week following the holiday week. Aside from the July 4 holiday week, load activity was the weakest since late December. Volume was more than 46% below the same week last year and more than 41% below the five-year average for the week.

Yellow strike averted as Central States Health agrees to extend benefits to workers

WASHINGTON — The Central States Health and Welfare Fund agreed Sunday, July 23, to extend health care benefits for workers at Yellow Corp. operating companies YRC Freight and Holland, averting a strike of Teamsters workers at the freight companies. The strike was slated to begin on Monday, July 24, after Yellow failed to make contractually obligated benefit payments of $50 million to Central States on July 15. According to a Teamsters news release, Teamsters General President Sean M. O’Brien and General Secretary-Treasurer Fred Zuckerman placed “intense pressure” on the companies to come to an agreement. Central States is giving Yellow 30 days to pay its bills with the understanding the company will do so within the next two weeks, the news release stated. “The intense discussions between Teamsters leadership and Central States successfully convinced fund trustees to reverse their previous decision that health care benefits would end on July 23 if Yellow remained delinquent,” the news release stated. O’Brien subsequently ordered the Teamsters National Freight Industry Negotiating Committee to meet in-person with Yellow representatives on Sunday evening. Meetings will take place in Washington, D.C., to review the state of the company and the current contract. “Our members at YRC Freight and Holland cannot work without health care, and the Teamsters worked tirelessly to ensure an immediate strike at Yellow could be averted,” O’Brien said. “These discussions were not easy, but Central States has made meaningful movement under pressure from the union. We are seeking a real resolution, but let this solution today serve as a profound reminder that our members can only endure so many sacrifices. Teamsters at Yellow simply work too hard and have already given so much.” On Friday, July 21, U.S. District Court Judge Julie Robinson of Kansas ruled against Yellow Corp.’s request for an injunction to stop a Teamsters strike. Yellow Corporation executives said that a strike by Teamsters would have violated the parties’ collective bargaining agreement.

United Parcel Service, Teamsters union to resume labor talks

LOUISVILLE, Ky. — United Parcel Service said it plans on Tuesday, July 25, to resume labor talks with the Teamsters union representing 340,000 employees, an effort to avert a strike that could roil supply chains and harm the economy. The two sides in April began talks on a contract covering the company’s U.S. drivers, package handlers and loaders. An existing five-year labor pact expires on July 31. “With the contract expiration less than two weeks away, we need to work quickly to finalize a fair deal that provides certainty for our customers, our employees and businesses across the country, Atlanta-based UPS said on Saturday. A spokesperson for the International Brotherhood of Teamsters confirmed the Tuesday talks and pointed to a statement detailing its goals for a five-year agreement that increases pay and full-time jobs, and strengthens protections for workers. UPS said it hope to “resolve the few remaining open issues” at the talks. The company started negotiations “prepared to increase the already industry-leading pay and benefits we provide our full and part-time union employees and are committed to reaching an agreement that will do just that.” The two sides have reached tentative agreements on eliminating a two-tier pay structure for delivery drivers and putting air conditioning on package cars. However, they remain at odds over pay increases for part-time workers who sort packages and load trucks. Talks broke down on July 5 with each side blaming the other.