Yellow Bankruptcy: Impact on US Freight Trucking Industry and Supply Chain

Yellow Bankruptcy: Yellow was once considered important for the nation’s needs. The company plans to stop business immediately, resulting in all employees being let go simultaneously. The company is facing financial issues, and talks with the union have stalled. The company is filing for bankruptcy due to its inability to improve. Yellow received a government loan due to the outbreak three years ago. This happened because of what occurred. The current events are a big change from before.

The company is being tested by talks between Yellow and the International Brotherhood of Teamsters for a new deal. IBT is the company’s biggest union, representing its members.

In March, the company owed $1.36 billion, with $659.83 million owed to the US government. This was because the government had already given the company a loan of $631.75 million to help with pandemic aid. Only a small portion of the capital has been repaid, indicating a slow process.


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Yellow’s bankruptcy creates uncertainty for its assets and disrupts the supply chain. The supply chain was surprised by Yellow’s statement. If this US freight trucking company fails, it could greatly impact many lives. UPS workers won’t strike.

Yellow and Biden worked hard to reach a labor deal, but couldn’t in the end. There’s a chance the group will spend $10 million in one day, which worries me about its profitability. Shippers are withdrawing freight from Yellow’s network, worsening the company’s already poor financial situation.

In recent years, Yellow’s issues have worsened, and a dubious $700 million loan in 2020 was the final blow. The Justice Department’s suing a company for taking money from the government increased loan concerns. This caused more loan worries.

The shipping industry is at a critical point, requiring important decisions. The company may need to close soon due to financial, employee, and customer issues. These memories won’t reveal Yellow’s trip outcome yet.

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