| Arrow Trucking abruptly closed today, sending | | | | to next Monday, December 28th. D-Day is New |
| home its workers this morning. Its truckers were | | | | Year's Eve, when a big bond interest payment is |
| in a difficult spot, where the Arrow gas cards | | | | due. That's only a week from now. |
| stopped working; the workers were instructed to | | | | Yesterday's Arrow Trucking closure, leaving |
| take any Freightliners and Kenworths they had to | | | | truckers left out in the cold two days before |
| the nearest dealer and get a bus ride home via | | | | Christmas, might be a foretaste of what might |
| Frieghtliner's Daimler parent; drivers with Navistar | | | | happen with YRC; a nice story from today had |
| trucks had to call in for instructions. Why the | | | | Schneider volunteering to give Arrow drivers a |
| truckers have to call Daimler for a ride home is | | | | ride towards home. YRC should take note of how |
| interesting in itself. | | | | not to do things, but they may have nearly as |
| YRC was complaining about a lack of liquidity, but | | | | abrupt a crash, for they will strive to make things |
| Arrow had the near ultimate of liquidity problems | | | | look at normal as possible in hope of turning things |
| when their paychecks started to bounce. | | | | around before pulling the plug. |
| It is increasingly common for firms to go right up | | | | If you have YRC as one of your LTL shippers, |
| to the end before letting workers know things | | | | you might be advised to find alternative shipping |
| are going to close. I recall one Don Pablo's | | | | after the 28th, for your loads might get caught |
| restaurant closure in Lexington where the store | | | | up in any shutdown that might come. Folks like |
| closed as normal on Sunday night and had | | | | FedEx and UPS are in position to pick up the |
| workers show up on Monday morning to have a | | | | slack, as are other LTL carriers, but taking all of |
| note on the door telling them where to pick up | | | | Yellow and Roadway's business will be a challenge. |
| their final paycheck; that is often done to keep | | | | In the short-term, a YRC Chapter 7 will be good |
| workers from bailing out on the firm if they tell | | | | for the industry, as they'll be off the market while |
| them they have a few weeks before closing. | | | | they go through liquidation and freight prices will |
| However, that doesn't leave people stranded | | | | go up. However, the long term will also see all |
| thousands of miles away from home on | | | | those YRC trucks and truckers looking for a place |
| Christmas week. | | | | to light in the industry; that will depress wages in |
| Arrow, with 4000 vehicles, is the largest trucking | | | | the trucking industry, lower the price of used |
| closure this year. Many small firms have went | | | | trucks and possibly encourage new |
| under in the last few years, but this is one of the | | | | owner-operators to enter the market. |
| larger casualties. This is a good case of how not | | | | That's likely why the Teamsters are steamed and |
| to close down a firm, something YRC can take a | | | | are looking for a good scapegoat; they are after |
| lesson from if and when they have to go Chapter | | | | the credit-default swap market and are asking for |
| 7 early next year. | | | | a federal and state investigation. Bondholders with |
| YRC hasn't quite got enough support from its | | | | default insurance may want to see YRC go down |
| bondholders to do its debt-for-equity swap, and is | | | | and get 100% on the dollar. |
| extending its deadline for completion of the swap | | | | |