Connell High School in Connell, Washington, has formally petitioned the FMCSA to allow students under 18 to obtain commercial learner's permits (CLPs).
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May 19, 2024 7:20 pm
Yellow rejects bid to breathe new life into its collapsed business, once a titan in the U.S. trucking industry, this will mark the end of a remarkable saga in the logistics sector. This decision effectively shelves a plan to resurrect one of the country’s largest freight carriers and rehire thousands of former workers.
Yellow’s decline is not just the story of a company’s failure but a reflection of the challenges facing the trucking industry. Founded 99 years ago, Yellow was a significant player in the less-than-truckload (LTL) sector, where freight from multiple customers is combined in a single trailer. Last year, it reported revenues of $5.2 billion, making it the third-largest carrier in its field. However, its collapse this summer was the most significant failure of a trucker in U.S. history, leading to the layoff of 30,000 workers.
The bid to revive Yellow was led by Sarah Riggs Amico, executive chair of Jack Cooper Transport. It proposed transforming Yellow into a smaller, more efficient entity. The plan included $1.1 billion in financing and targeted Yellow’s remaining assets, including terminals, trucks, and trailers. However, the bid faced several obstacles, such as persuading creditors to delay debt repayments and accept equity in the new venture.
Yellow’s lawyers cited multiple reasons for rejecting the bid. They argued that the proposal was not viable, underestimating startup costs and overestimating potential revenue. Moreover, the plan failed to secure the support of Yellow’s unsecured creditors, including pension funds owed billions. Furthermore, the U.S. Treasury Department, a key stakeholder due to a pending $700 million loan, did not signal its support.
Instead of accepting the revival bid, Yellow is proceeding with the liquidation of its assets. This includes the sale of about 130 truck terminals, which fetched nearly $1.9 billion at a bankruptcy auction. The liquidation of other properties and tens of thousands of pieces of equipment is expected to generate substantial cash for creditors.
Interestingly, the truck terminals, appraised at $1.1 billion, proved more valuable at auction. This underscores the strategic importance of terminal locations in the LTL sector, where buying or building new facilities is increasingly challenging. Approximately 90% of these terminals were sold to various LTL carriers, highlighting the demand for such assets in the industry.
Yellow’s plan includes selling its remaining terminals and liquidating its fleet of trucks and trailers over the next year. This move will further reshape the LTL sector, as the redistribution of these assets will impact the dynamics of freight movement across the country.
Yellow’s rejection of the revival bid is a significant event in the trucking industry, marking the end of an era for a once-dominant player. It also signals a shift in the LTL sector, as assets from a major carrier are redistributed. While this closes a chapter for Yellow, it opens new opportunities for other players in the industry, ultimately reshaping the landscape of freight logistics in the United States.
Connell High School in Connell, Washington, has formally petitioned the FMCSA to allow students under 18 to obtain commercial learner's permits (CLPs).
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