YRC Worldwide/ Yellow Corporation is currently experiencing dramatic financial stress. While YRC / Yellow has been in financial trouble several times before, it feels different this time around.
There is an inability for the union leadership and corporate interests to find common ground. The United States Treasury Department currently owns 30% of Yellow company stock as a result of a previous bailout loan and as of today, the government is refusing to step in to help solve any disputes. Yellow Corporation’s stock is down more than 93% since December of 2021. Finally, according to Yellow Corporation management, they may run out of cash as soon as the middle of July 2023. This is weeks away.
While it is very possible that Yellow may pull through and find a way forward, their future is in question as of right now.
We are unsure what exactly will happen next, but we wanted to bring the situation to light if you were not aware of it. When LTL Companies cease operations, they typically pick up freight right up to the day before they close down. Anyone who has tried to rescue freight from a dock where the employees just received news that they were unemployed is a nightmare scenario. Freight can be delayed, lost, or damaged and other issues can arise.
We are not suspending YRC Worldwide / Yellow Corporation from our platform of more than 80 different LTL Carriers at this time, but we wanted to inform you of potential concerns we may have so you can make adjustments to the way you book loads if you see fit.
We are rooting for Yellow Corporation to survive whereas losing one of the largest asset-based carriers in the country will do harm industrywide to service levels and existing cost structures. Please note: YRC Worldwide / Yellow Corporation includes brands and subsidiaries: Holland, Reddaway, New Penn and HNRY Logistics.
If you have questions, please reach out to us.