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.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.