Old Dominion Freight Bids $1.5 billion for Yellow Terminals

Founded back in 1934, Old Dominion Freight Line has established itself as a stalwart in the transportation industry, boasting a legacy almost as enduring as that of Yellow Corp., which had been in operation for an impressive 99 years. However, recent events have brought the spotlight to the forefront of the trucking world. On the 19th of August, a seismic shift occurred as reported by Transport Topics publication: Old Dominion Freight Line Inc. made an audacious move, offering a staggering $1.5 billion to acquire a whopping 169 terminals from the beleaguered Yellow Corp. This offer surmounted a prior bid from industry contender Estes Express Lines.

The revelation of Old Dominion’s proposal came to light through legal documents filed on the 18th of August in a Delaware bankruptcy court. Notably, this bid serves as a stalking horse, setting a preliminary minimum price for these Yellow Corp. terminals in the forthcoming Chapter 11 auction. The silence from the legal representatives of both Yellow Corp. and Estes Express Lines on the matter speaks volumes about the intense competition unfolding in this sector.

Interestingly, this bidding war erupted after Yellow Corp. managed to secure a fresh and more economically viable bankruptcy loan to facilitate its liquidation proceedings. A hefty sum of $142.5 million was provided through the collaboration of Citadel Credit Master Fund and MFN Partners LP, the latter being Yellow Corp.’s most substantial shareholder.

It’s imperative to recognize Old Dominion Freight Line’s standing on the Transport Topics Top 100 list of the most prominent for-hire carriers in North America, where it claims the 10th position. By contrast, Yellow Corp. and Estes Express Lines hold the 13th and 14th spots, respectively. In the realm of less-than-truckload carriers, these companies command the 2nd, 3rd, and 5th rankings, further accentuating the significance of their rivalry.

Shifting gears, an intriguing narrative unfolds concerning ex-Yellow Logistics employees. As reported by FreightWaves publication on the 1st of August, a cohort of Yellow logistics employees found themselves in the throes of unemployment due to widespread layoffs at the subsidiary of Yellow Corp. However, fast-forward to the 17th of August, and a beacon of hope emerges as Radiant Logistics announces the inauguration of a new brokerage office situated in Overland Park, Kansas. Notably, the leadership of this new venture comprises former Yellow Logistics managers, signaling a unique twist in the tale.

Radiant Logistics’ brokerage arm, Radiant Road and Rail, brings an impressive 85 years of industry experience to the table. Their specialization spans various services, encompassing truckload, less-than-truckload, intermodal, drayage, and trans-loading. Spearheading this new endeavor are Steve McCleary, entrusted with managing customer and carrier teams, and Ryan Stroup, at the helm of field sales. This move showcases both Radiant’s adaptability and their commitment to providing a haven for the displaced Yellow Logistics employees, allowing them to continue their professional journeys.

Conversely, the abrupt closure of Yellow Logistics terminals follows a series of tribulations and conflicts with its workforce. The International Brotherhood of Teamsters found themselves entangled in a protracted struggle with Yellow Corp., culminating in a strike notice prompted by missed payments to health care and pension funds. While the strike ultimately dissipated, the repercussions were already apparent as intermediaries and customers redirected their cargo away from the network, precipitating the company’s swift decline.

In an unforeseen twist, former Yellow Corp. CEO James Welch and other industry figures rallied to support 18 Yellow drivers who had qualified for the esteemed National Truck Driving Championships (NTDC). These drivers, abruptly bereft of employment following Yellow Corp.’s closure, faced an uncertain fate in their pursuit of competing. Welch emerged as a guardian angel, magnanimously covering the entire $27,000 budget required for their participation. This remarkable show of unity underscores the tight-knit fabric of the trucking community and accentuates the acknowledgment of the drivers’ unwavering dedication.

In summation, the canvas of the trucking industry has witnessed sweeping brushstrokes, from Old Dominion’s audacious bid for Yellow Corp.’s terminals to the emergence of Radiant Logistics as a harbor for displaced professionals, all culminating in the heartwarming solidarity displayed towards the dislocated drivers. These unfolding narratives underscore the ever-evolving nature of this sector and the unwavering resilience of its participants in the face of challenges, shaping an industry that keeps the world in motion.