Trucking Icon, Yellow Freight, goes out of business

Don M.

Don M.

SF VIP
Location
central Missouri
One of the nations oldest trucking companies, Yellow Freight, has closed it's doors after early 99 years. Their trucks used to be a common sight on our nearby highways, and stores, but in recent years, seeing one has been rare. Fortunately, some smaller and "non union" trucking companies have emerged, otherwise we might be seeing yet another reason for shortages at the stores.

https://www.cnn.com/2023/07/31/business/yellow-corp-closing/index.html
 

That's been brewing for a while. Their pensions were in danger. Probably a combination o mismanagement and the covid lockdowns etc. They apparently botched or blew thru a $700 MILLION covid loan.

Not only is an old guard established business lost all those employees lose out as well.
 
WhatInThe said:
That's been brewing for a while. Their pensions were in danger. Probably a combination o mismanagement and the covid lockdowns etc. They apparently botched or blew thru a $700 MILLION covid loan.

Not only is an old guard established business lost all those employees lose out as well.
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I think the pensions are guaranteed under Federal laws. I don’t know the particulars, but I remember reading something about pensions being protected by the federal guaranty corporation or something like that.
 

Been There said:
I think the pensions are guaranteed under Federal laws. I don’t know the particulars, but I remember reading something about pensions being protected by the federal guaranty corporation or something like that.
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There is a program or insurance but the company might have to pay into like insurance premiums. If they didn't that could be an issue.
 
WhatInThe said:
There is a program or insurance but the company might have to pay into like insurance premiums. If they didn't that could be an issue.
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Yeah, I don’t know the particulars of how the federal guaranty works. I remember it was started back when people like Carl Icahn was buying companies like TWA just to raid their pension funds, so the government stepped in and set up a guaranty pension company that put a stop to all that greedy b.s. Ir, something to that effect.
 
What a fiasco! The article states that U.S. taxpayers will be affected by their closing but I feel bad more so for their employees. I sure hope nothing like that happens to JB Hunt, my son's employer.
 
Been There said:
I think the pensions are guaranteed under Federal laws. I don’t know the particulars, but I remember reading something about pensions being protected by the federal guaranty corporation or something like that.
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If there is a guaranty, it is likely for a fraction of what the pension is worth. I can't really remember and you need to be a lawyer to understand the specifics.
 
I don't pay much attention to trucking names, but I remember that logo. There's so many out there, I don't watch that closely. It's odd that in a time of supply chains issues, part of the supply chain would fold up. But I know trucking is just one part of the chain.
 
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