U.S. trucking firms fall as Yellow narrowly averts strike

ArcBest

24/07/2023 13:29

** Shares of U.S. trucking and logistics companies fall
premarket after the third-biggest U.S. trucking company Yellow
 YELL.O  averts a threatened strike by 22,000
Teamsters-represented workers
    ** Shares of XPO Inc  XPO.N , Old Dominion Freight Line Inc 
 ODFL.O , Saia Inc  SAIA.O  and ArcBest Corp  ARCB.O , which
also specialize in the less-than-truckload (LTT) segment that
combines shipments from different customers in the same trailer,
fall in the range of 5.1% and 6.2% premarket 
    ** Competitors are expected to cherry-pick Yellow's
customers, as per trucking experts and analysts; Yellow shares
were down about 2% at $1.04
    ** "While Yellow appears to have seized a last ditch attempt
at survival, it is hardly out of the woods and bankruptcy may
still be likely, potentially benefiting LTL competitors,"
analysts at TD Cowen wrote in a note
    ** "Reports suggest Yellow's billings were down more than
50% on Thursday, according to an industry source we contacted,
and likely continued to slip," they added
    ** Other logistics firms Fedex  FDX.N  and UPS  UPS.N  were
also down more than a percent each
    ** LTT stocks have run-up sharply recently, with XPO, ODFL
and SAIA hitting record highs last week on signs of a resilient
U.S. economy 

 (Reporting by Sruthi Shankar)
 ((sruthi.shankar@thomsonreuters.com;))