Yellow Freight Bankruptcy

[Josh B]

Yellow freight just declared bankruptcy, only 3 years after getting a $700,000,000 loan due to pandemic.
I wonder where they hid the money

 

[Curious Hound]

I wonder where they hid the money

In the White House library?

 

[RobbieD]

Executive bonuses.

 

[ZMan]

A guy I do business with, who does a lot of custom work, just bought a truck back that he sold to a guy a couple years ago. The guy sold the truck back to him because he lost his job at Yellow. He worked there 39 years, now has no job and no pension.

 

[Uncle Gump]

My neighbor drove for a smaller trucking company up to the end of July. They closed up shop for good.

 

[Josh B]

It's really sad, that was a big company. The biggest company I ever worked for was Homestake Gold Mine in the mid to late 70's, it had 6 or 8 thousand people, and was owned by William Randolf Hurst. It was long after I left that they closed, but the mine was over 8000 ft below ground and had just become too expensive to produce, they closed it due to common sense, and no one is to blame, it's the nature of things.

This money thing where they act like it's monopoly money, when it is actually taxpayer money, is a totally different ball park, where they run off to count the money they got away with and lock out all responsibility of looting, which is basically how it would seem to me, but then really, I don't know. I think we may have some serious times looking at us :/

 

[rubydist]

The bankruptcy filing apparently allocates money to pay off the government loan, although a lot of other creditors are going to be taken to the cleaners. This one seems to be a sad combination of incompetent management and greedy workers.

People still need to ship their products, so someone will pick up the business and a lot of those drivers will be driving again, but you can bet that freight costs will be going up...

 

[Blmpkn]

greedy workers.

This is a huge problem nowadays I feel like.
Covid was an opportunity for people to actually argue their worth when it comes to pay and such due to the labor shortage... but its getting way out of control.

Ford contracts run out soon, and their union reportedly wants a 40% increase in pay and 32 hour weeks

Really... the same people who literally can't build anything right in the past 3 years think their efforts are worth 40% more

 

[Roert42]

I've read a few new articles that showed the trucking industry has been taking a big hit recently. I guess there was a shortage of drivers, so the shipping rates went up a lot, then they attracted a bunch of new drivers at higher pay, then the shipping rates had to go down because of all the new competition.

People buying new trucks that they could easily make payments on two years ago because the rates were good, now they are only getting a quarter of the pay they were, can't pay for the truck.

All comes around one way or the other.

 

[rusty ol ranger]

This is a huge problem nowadays I feel like.
Covid was an opportunity for people to actually argue their worth when it comes to pay and such due to the labor shortage... but its getting way out of control.

Its really getting ridiculious. The dairy i deliver to is union...they are currently hardly able to run because the union has been making very outrageous demands, and theyve brought in a bunch of temps to stay open that literally give zero shits about their job.

Used to be that place ran like a swiss watch....now they are hardly taking any milk (i aint been there in 2 weeks, been going to our co-op plant and a few other shitholes) and when we were going...the time spent there was ridiculious...used to be 1.5 hrs gate to gate....it was up to 2-2.5 hrs 75% of the time.

People are just demanding way to much

 

[sgtsandman]

The bankruptcy filing apparently allocates money to pay off the government loan, although a lot of other creditors are going to be taken to the cleaners. This one seems to be a sad combination of incompetent management and greedy workers.

The same thing happened here with the steel mills. Some things never change. Management ran the mils and the equipment into the ground and the workers demanded too much money. The mill machinery never got updated and a lot of the workers would brag about all the stuff they would get away with. Like only working for a couple hours and finding a place to sleep for the rest of the shift.

Both sides shared equally in the blame for the mills shutting down. Of course, the workers took the brunt of the hit. Either losing all of their retirement or getting pennies on the dollar for a retirement. Meanwhile, I’m sure the higher ups and the owners did just fine.

It’s probably going to be the same with Yellow when it’s all said and done.

 

[ekrampitzjr]

Yellow had been shaky for some time. It was an open secret.

COVID delayed trucking bankruptcies because of the supply-chain issues and sheer demand for carrier transport in 2020–2022. But in 2019, just before COVID, two huge lines went bust: New England Motor Freight (NEMF) and Celadon. Celadon was a special case because top officials were under investigation and eventually indictment.

At work we saw service get bad quickly after the pandemic hit, and carriers used it as an excuse. Suddenly they had more freight than they could handle. Now the situation is more back to normal.

Watch and see. I suspect TForce (successor to UPS Freight) will soon report big problems. We have been having service problems with them recently, though that wasn't unusual even when it was UPS. TForce laid off some drivers late last year, then tried to entice them to return, and most of those drivers said no way they were coming back.

 

[Fast Eddie]

I, personally, don't know what the real story is. Yellow executives and the Union bosses are likely the only ones that do. I'm not even sure if the union members know much about it past their pink slips.

To be clear, the 700MM was in the form of loans and not a freebee. There's a lot of finger-pointing but this doesn't pass the sniff test. Is it really that easy to burn through 700MM and then walk away free and clear? Seems so. Either way, the taxpayer is out 700MM.

At the end of the day, it also means higher prices at the counter for all of us as retailers flock to Yellow's competitors for services.

I don;t think there's any one source out there to be trusted with the discipline to conduct the research and convey the facts anymore - not one. Here's a few articles so you can form your own thoughts and opinions. Quick FYI: sometimes the WSJ asks for a subscription, sometimes it doesn't. I wasn't asked to subscribe.

Trucking Giant Files For Bankruptcy After Receiving Over $700 Million In Gov Loans | The Daily Caller
The data to watch if Yellow shuts down - FreightWaves
Trucking giant Yellow Corp. declares bankruptcy after years of financial struggl : NPR
Trucker Yellow Files for Bankruptcy, Will Liquidate - WSJ

 

[Fast Eddie]

The same thing happened here with the steel mills. Some things never change. Management ran the mils and the equipment into the ground and the workers demanded too much money. The mill machinery never got updated and a lot of the workers would brag about all the stuff they would get away with. Like only working for a couple hours and finding a place to sleep for the rest of the shift.

Both sides shared equally in the blame for the mills shutting down. Of course, the workers took the brunt of the hit. Either losing all of their retirement or getting pennies on the dollar for a retirement. Meanwhile, I’m sure the higher ups and the owners did just fine.

It’s probably going to be the same with Yellow when it’s all said and done.

Same reason the Japanese cleaned our clocks in the automobile industry not so very long ago. And yes, I believe the Yellow executives have already stashed their booty in the forms of raises and bonuses before the filing.

Unions are not the same organizations we legitimately needed back in the 20's - 50's. The have become to politically leveraged and the bosses way too rich off the backs of their members in recent times.

 

[superj]

unions are such a waste. they should be blocked. we have them at work and they are useless