When the last Yellow Corp. truck shut down its engine, an era came to an end. The 99-year-old company, once the fifth-largest trucking firm in the United States, officially filed for bankruptcy after accumulating over $1.5 billion in losses. This marks not just the demise of Yellow Corp., but a seismic shift for America's freight industry—particularly the less-than-truckload (LTL) market.
The Bankruptcy: A Century of Mismanagement Comes Due
Yellow Corp.'s collapse resulted from decades of poor management, strategic missteps, and strained labor relations. Despite generating $5.24 billion in revenue (in a $58 billion LTL market), chronic losses left the company drowning in debt. Teamsters union president Sean M. O'Brien called the bankruptcy "unfortunate but not unexpected," blaming Yellow Corp.'s failure to properly utilize worker concessions and government bailout funds.
The company's debt included a $730 million loan from the Trump administration. With the bankruptcy, this taxpayer-funded loan—along with the government's 30% equity stake—faces near-certain losses.
This wasn't Yellow Corp.'s first brush with bankruptcy. The filing culminates two decades of financial struggles. Competitors like ABF Freight System and TForce Freight (formerly UPS Freight) will absorb much of its market share—though unionized carriers represent just 4% of the broader $403 billion trucking industry.
Market Impact: Higher Rates and Shifting Competition
TD Cowen analyst Jason Seidl identifies ABF Freight as the "natural alternative" for Yellow Corp.'s customers, predicting it will gain market share at favorable rates. Yellow Corp. employed 30,000 workers (24,000 Teamsters members) and operated 13,800 tractors with 43,400 trailers. As a national carrier serving 48 states, its strongest presence was in the Northeast and Midwest.
Within days of the bankruptcy announcement, Yellow Corp.'s massive freight terminals in Akron and Cleveland stood empty as customers fled. Though the Teamsters temporarily extended healthcare benefits for YRC Freight and Holland employees—averting a strike that might have accelerated the collapse—the reprieve proved too little, too late.
Analyst Dave Ross likened Yellow Corp.'s 15-year decline to the Black Knight in Monty Python and the Holy Grail : "A valiant fight, but the battle is over."
SJ Consulting's Satish Jindel estimates Yellow Corp. handled just 7% of America's daily 720,000 LTL shipments. With 8-10% excess capacity currently in the LTL sector, the bankruptcy shouldn't disrupt supply chains—but shippers will pay more. "They used Yellow because it was cheap," Jindel notes. Major carriers like Old Dominion Freight Line, FedEx Freight, and XPO Logistics stand to benefit.
Historical Lessons: Expansion and Labor Strife
Founded in 1924 as a Yellow Cab subsidiary, Yellow Corp. grew by acquiring failing carriers' operating rights during the regulated era. Trouble began in the late 1990s when CEO Bill Zollars embarked on aggressive expansion, culminating in the disastrous $966 million Roadway Express acquisition—timed just before the Great Recession.
Zollars promised hundreds of millions in synergies that never materialized. Subsequent fire sales of regional carriers like U.S. Freightways provided temporary cash but eroded competitiveness. Even well-run acquisitions like Jevic Transportation faltered under Yellow Corp.'s leadership.
The Teamsters supported Yellow Corp. through wage cuts (15%) and reduced pension/healthcare contributions—until management proposed the "One Yellow" restructuring plan. Union resistance proved fatal. After nine months of stalemate, lenders withdrew support. Yellow Corp. suspended $50 million in pension payments, citing Teamsters' "obstruction," but a federal judge refused to block strike threats.
Teamsters president O'Brien summarized: "After years of worker givebacks and government bailouts, this deadbeat company has only itself to blame." The "One Yellow" modernization plan—meant to consolidate regional operations—became Yellow Corp.'s last stand. When workers protested potential relocation requirements, the century-old firm ran out of time and money.