Yellow Corp., a 99-year-old trucking company, files for bankruptcy

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Yellow Corp., a once-dominant US trucking company, has filed for bankruptcy as it winds down its 99-year-old business that employs 30,000 workers.

Yellow Corp. was started in 1924, primarily operating under the name Yellow Freight.

While the nonunion LTL carriers started with a significant cost advantage, repeated concessions by the Teamsters union helped close much of that gap. So did a shortage of drivers nationally, which helped lift wages at the nonunion carriers. In its final year, Yellow was still a major player but its dominance had faded. The company handled only about 7% of the nation's 720,000 daily LTL shipments in 2022, according to trucking consultant Satish Jindel.While the US economy has remained strong, consumers have shifted their spending away from the goods purchases they made early in the pandemic.

Nightingale said that while Yellow could have been profitable when demand for trucking was strong, it couldn't survive in the face of the slowdown in freight, and the drop in trucking rates that went with it. But customers had already started to bolt for other carriers. Within days, Yellow began preparations to shut down, halting pickups of freight at customers and only delivering freight that was already in its system. On July 30, it notified employees and the union that it had halted.The company had recently pressed the Teamsters for a new contract that would allow it to merge operations of its various trucking companies and the seniority lists of its drivers.

In its statement Sunday, Yellow again accused the Teamsters of driving the nearly century-old company "out of business."

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Yellow Corp., a 99-year-old trucking company, files for bankruptcyYellow Corp., a once-dominant US trucking company, has filed for bankruptcy as it winds down its 99-year-old business that employs 30,000 workers. Yellow Corp., formerly known as Yellow Freight, was one of the dominant carriers in the less-than-truckload (LTL) segment. Along with two other unionized LTL rivals, Roadway and Consolidated Freight, Yellow was part of the Big Three in the industry.
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