quote:

Yellow owed $729.2 million and had only paid $230 on the principal balance.

I'd pay the government $200 a year for a million dollar loan which is much better than they're getting from Yellow. Where do I sign up?

^^^ No joke.
And as taxpayers we all eat these Covid handouts, giveaways and unpaid loans.
The inflation we are all suffering through is a direct result.

Just my amateur comments, but then again, based on personal experience.

Another company that offers a marketable product or service, that eventually is run into the ground by poor management practices.

Prayers to those families affected by this. BTDT.

The teamsters were the union, threatening strike, think they might have a little to do.with the downfall?

quote:

Originally posted by powermad:
Those rigs hit 1,500,000 miles in about 4 years and then they trade them in for a new one.

Not trying to call you out, but I don’t see how any truck is accumulating 1.5M in four years. Even a hard-charging, we-live-in-the-truck team would struggle to get that many miles. That is more than a thousand miles a day, 365 days a year, for four years straight, with zero down time for maintenance, going to the doctor, renewing your part B, etc. I just don’t see how that’s possible.

If it does happen, it is not the norm. I am finding that many carriers are trading trucks at 500K in lieu of rebuilding their after treatment system, which certainly won’t make it to 1.5M, even if the engine will.

quote:

Originally posted by spunk639:
The teamsters were the union, threatening strike, think they might have a little to do.with the downfall?

Probably...With the ship already listing financially, this quote re: the UPS contract may have been the nail in the coffin...

“We demanded the best contract in the history of UPS, and we got it,” said Teamsters General President Sean M. O’Brien in a statement. “This contract sets a new standard in the labor movement and raises the bar for all workers.”

They threw in the towel as there was simply NO future for YRC, especially knowing they'd need to deal w/ the Teamsters Union. Simply put, the company would no longer be viable! Rather than getting part of something, the Teamsters ensured they'd get ALL of NOTHING!

Freight Volume And Spending Declined Markedly In Second Quarter

https://www.zerohedge.com/mark...kedly-second-quarter

Truck freight volume and spending in the second quarter of 2023 declined by the highest levels since the early days of the pandemic, the latest U.S. Bank Freight Payment Index revealed. Spending by shippers dropped 10.9% compared to the second quarter of 2022 while shipment volume dropped 9%, according to a statement from the Minneapolis-based bank.

“Trucking is in the midst of a significant slowdown,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations.

“Weaker consumer demand for goods and a slowdown in manufacturing activity and housing starts are having a major impact on the industry – especially carrier operations.”

Nationwide shipment levels have now decreased for five consecutive quarters. In the second quarter, volume dropped most in the Northeast (27.1%) and Southeast (12.6%) year-over-year. The Southwest continued to be a bright spot, with shipments increasing 14.8%.

“In the spot market, we’ve been observing for a while sharp spending drops caused by lower volumes and increased capacity. This trend has now solidly penetrated the contract freight market,” said Bobby Holland, director of freight business analytics, U.S. Bank.

“Nearly every category we track – both nationwide and regionally – contracted in the second quarter.”

More at link

quote:

Originally posted by sigcrazy7:

quote:

Originally posted by powermad:
Those rigs hit 1,500,000 miles in about 4 years and then they trade them in for a new one.

Not trying to call you out, but I don’t see how any truck is accumulating 1.5M in four years. Even a hard-charging, we-live-in-the-truck team would struggle to get that many miles. That is more than a thousand miles a day, 365 days a year, for four years straight, with zero down time for maintenance, going to the doctor, renewing your part B, etc. I just don’t see how that’s possible.

If it does happen, it is not the norm. I am finding that many carriers are trading trucks at 500K in lieu of rebuilding their after treatment system, which certainly won’t make it to 1.5M, even if the engine will.

The rigs pulling those miles are on the Seattle to San Diego run.
Three round trips a week for about 7,200 miles.
374,400 miles a year.

The smart ones get the 8 year/800,000 mile warranty.
The DPF/SCR system will be on it's second or third one.
Cummins is about the only engine that I routinely see with those miles.

But most don't change the oil often enough or keep them maintained and it all goes to shit in short order.
Dumping the oil every 10,000 miles is to expensive.

One husband and wife team would rack up a million in a few years.
He would have new Rod and main bearings rolled in at a million and they always looked new.
They were doing a rig about every 5 years until he retired a few years ago.

US trucking firm Yellow files for bankruptcy after loading up on debt

https://www.reuters.com/busine...-up-debt-2023-08-07/

Yellow Corp (YELL.O), a nearly 100-year-old U.S. trucking firm, filed for Chapter 11 bankruptcy protection on Sunday, burdened with a heavy debt load after a series of mergers, and following tense contract negotiations with the Teamsters Union.

The bankruptcy filing in a Delaware court lists estimated assets and liabilities of $1 billion to $10 billion, with more than 100,000 creditors.

"It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business," Yellow's CEO, Darren Hawkins, said in a statement on Sunday.

Yellow, formerly called YRC Worldwide, is one of the largest U.S. trucking companies and a dominant player in the "less-than-truckload" (LTL) segment that hauls cargo for multiple customers on a single truck.

Its customers include large retailers such as Walmart (WMT.N) and Home Depot (HD.N), manufacturers and Uber Freight.

It's high time companies just start closing up shop whenever a union starts extorting them.