Yellow Freight Shuts Down

[Mainsail]

Wow, glad I don't have anything in the pipeline. I was setting up to use them to pick up my MEP-802A on the pallet in TX and ship to WA, but found their website too confusing to complete the deal.



https://www.reuters.com/business/au...-yellow-shuts-down-operations-wsj-2023-07-30/

https://www.foxbusiness.com/markets/what-pushed-yellow-trucking-company-point-bankruptcy

 

[NY Tom]

Too bad...I was getting great rates from them for years...good enough to accept the rough handling of the items shipped.

Two sides to every story.

The original post of the image above contributed to the abrupt ending from what I have gleaned.

Down to 2 union LTL carriers now.

 

[NDT]

This is a catastrophe in so many ways.

 

[MarkM]

Had delt with them many times over the years and found them a good company. Times are sure changing and not for the better.

Mark

 

[rcamacho]

Nearly had a diff stranded at YRC last week. I was the last pickup at my local terminal.

Since they shut down I’ve seen rates go up 2-3X from CA to WA


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[SCM35A2]

I've had a few things/parts shipped through them & have always been satisfied! Really sucks what happened to them & all their employees.

 

[NY Tom]

Nearly had a diff stranded at YRC last week. I was the last pickup at my local terminal.

Since they shut down I’ve seen rates go up 2-3X from CA to WA


Sent from my iPhone using Tapatalk

Yeah get ready. Everything I am reading states no cause for alarm the rest of the network will absorb it.
Sure they will, and increase the prices even further.
We will need to revaluate our shipping carriers and our vendor network as this will increase costs by a lot.
In my area competing quotes on freight were 2 to 3 times the price of YRC. We had a good and longstanding relationship with them.
Some say their low rates contributed to their demise. I suppose it was a factor but not the primary.

 

[FarmingSmallKubota]

I had a lot of issues with Yellow Freight but the price was worth it and for places like the GP PA warehouse that you can't get an appointment for over a month they were great because they had a trailer there that was loaded several days a week

 

[chucky]

https://www.npr.org/2023/07/30/1190960948/yellow-trucking-shutdown-explained Like them or not union companies will continue to go under when the labor/pension payments far outweigh the the ability to place a competitive bids with non union (cheaper labor no benifits companies) they can only operate at a loss with cheaper rates for a short time to hope the smaller cos. didnt have the pockets to wait them out ! Weve all watched for the last 15 years union trucking cos, slowly dieing out and this article said yellow was the 3rd largest union trucking co behind UPS and OLD DOMINION and O.D. will be next !

 

[Mullaney]

https://www.npr.org/2023/07/30/1190960948/yellow-trucking-shutdown-explained Like them or not union companies will continue to go under when the labor/pension payments far outweigh the the ability to place a competitive bids with non union (cheaper labor no benefits companies) they can only operate at a loss with cheaper rates for a short time to hope the smaller cos. didnt have the pockets to wait them out ! Weve all watched for the last 15 years union trucking cos, slowly dieing out and this article said yellow was the 3rd largest union trucking co behind UPS and OLD DOMINION and O.D. will be next !

.
The Teamsters Central States Pension Fund (Established in 1955) has paid about 80 Billion dollars in benefits to roughly 600,000 beneficiarys. Employer Contributions are negotiated as part of the Teamster collective bargaining agreements (Union Contract). In other words, the pension is funded by the companies with already agreed to monthly contributions. No sudden change in that AGREED to amount each month...

Lots more information available. Just ask.

 

[chucky]

.
The Teamsters Central States Pension Fund (Established in 1955) has paid about 80 Billion dollars in benefits to roughly 600,000 beneficiarys. Employer Contributions are negotiated as part of the Teamster collective bargaining agreements (Union Contract). In other words, the pension is funded by the companies with already agreed to monthly contributions. No sudden change in that AGREED to amount each month...

Lots more information available. Just ask.

I was just reading that the 700 million dollar loan that the fed gave them during the pandemic went to pay 2 missed pension payment by the co and the retirement fund was 1.4 billion dollars under funded and the vested employees will be offerd a one time payment at a super reduced amount and the non vested employees will get nothinghttps://www.fresherslive.com/latest...-yellow-freight-lose-their-pension-1555155465

 

[chucky]

https://www.transportdive.com/news/...gue-potential-strike-contract-dispute/688491/

 

[chucky]

https://www.wsj.com/articles/the-fa...y-yellow-is-on-the-verge-of-collapse-3724f662

 

[chucky]

https://www.nytimes.com/2023/07/28/business/bailout-trucking-firm-yellow-yrc-shutdown.html It looks like it was worse than it seemed and it make you wonder if other giants with huge pension plans will try to do this same thing in years to come ? My family has had many close friends that were TEAMSTERS years back 2 dead from cancer(worked for YELLOW) the other 2 in regular trucking after losing there job when consolidated freightways bellied up years back and i have other family members retired from FORD/ DUPONT / CSX /AT&T that say they worry about when the day comes when theyre pension just goes away by some crooked manuver by the co in todays climate ! It makes you also wonder whats gona happen to all the people that wont have pensions in todays jobs ? Im glad im old enough that im not here when it all melts down !

 

[Mullaney]

I was just reading that the 700 million dollar loan that the fed gave them during the pandemic went to pay 2 missed pension payment by the co and the retirement fund was 1.4 billion dollars under funded and the vested employees will be offerd a one time payment at a super reduced amount and the non vested employees will get nothinghttps://www.fresherslive.com/latest...-yellow-freight-lose-their-pension-1555155465

.
I hate to say it, but it is/was pretty obvious that YELLOW wasn't doing a very good job managing their money for the last 20 years. Buy another company - then get another mortgage. USF Holland is a great example. USF was next door to the YRC terminal here on Statesville Road. Did they shut down one or the other? Nope. Just keep running it like two different companies. Same with Roadway when they bought them out.

Buyouts are supposed to make it possible to eliminate duplicate functions and locations. That just hasn't happened with YELLOW. And supposedly, the solution was what they called OneYellow - and their fix was for the drivers and warehouse people to give back even more pay to fund that program.

.

 

[chucky]

.
I hate to say it, but it is/was pretty obvious that YELLOW wasn't doing a very good job managing their money for the last 20 years. Buy another company - then get another mortgage. USF Holland is a great example. USF was next door to the YRC terminal here on Statesville Road. Did they shut down one or the other? Nope. Just keep running it like two different companies. Same with Roadway when they bought them out.

Buyouts are supposed to make it possible to eliminate duplicate functions and locations. That just hasn't happened with YELLOW. And supposedly, the solution was what they called OneYellow - and their fix was for the drivers and warehouse people to give back even more pay to fund that program.

.

The one article said Trump gave the thumbs up on the 700 mil to help them out but the biden camp didnt seem interested in any support ! I think the future will be if they give u a paycheck that cashes each week is whats on the horizon for todays workers !

 

[Mullaney]

Dug up some more dirt...

At the time the PPP loans were made, the Department of Justice was suing Yellow for alleged fraud related to overcharges to the Defense Department for freight carrier services. The company in March 2022 agreed to pay about $6.85 million to settle that lawsuit.

That almost 7 million dollars could have gone to help pay their pension contributions, or buy fuel, or any number of other things. Rather than throwing money down the toilet...

 

[TomTime]

Im glad im old enough that im not here when it all melts down !

You and me both! I feel you brother!

 

[chucky]

Dug up some more dirt...

At the time the PPP loans were made, the Department of Justice was suing Yellow for alleged fraud related to overcharges to the Defense Department for freight carrier services. The company in March 2022 agreed to pay about $6.85 million to settle that lawsuit.

That almost 7 million dollars could have gone to help pay their pension contributions, or buy fuel, or any number of other things. Rather than throwing money down the toilet...

I saw that also ! One article said the 700 caught up 2 old/past due pension payments so they must have been behind a while the other said 1.5 billion underfunded !

 

[porkysplace]