Yellow: Inside American Trucking’s Largest Bankruptcy.
Yellow Freight is trucking’s largest bankruptcy. Yellow Freight Corporation was founded in 1924 as the Yellow Cab Transit Company. The company began as a taxi service, but it soon expanded into freight transportation. Yellow Freight became a major player in the less-than-truckload (LTL) freight industry, which hauls small shipments for multiple customers on a single truck.
Yellow Freight grew rapidly in the 1950s and 1960s. The company acquired a number of other LTL carriers, and it expanded its service network to include all 50 states. Yellow Freight also became a pioneer in the use of technology in the LTL freight industry.
In the 1970s and 1980s, Yellow Freight faced increased competition from other LTL carriers, as well as from trucking companies that specialized in full truckload shipments. The company also faced a number of challenges related to labor costs and regulations.
Despite these challenges, Yellow Freight remained a profitable company until the early 2000s. However, the company’s financial performance began to decline after the 2008 financial crisis. In 2013, Yellow Freight filed for bankruptcy protection. The company emerged from bankruptcy in 2014, but it continued to face financial challenges.
Yellow Freight Bankruptcy
In 2023, Yellow Freight filed for bankruptcy protection for the second time. The company’s bankruptcy was attributed to a number of factors, including declining freight volumes, rising costs, and labor unrest.
Yellow Freight’s bankruptcy had a significant impact on the LTL freight industry. The company was one of the largest LTL carriers in the United States, and its bankruptcy led to job losses and disruptions in service.
The bankruptcy of Yellow Freight is a cautionary tale for other companies in the LTL freight industry. The industry is facing a number of challenges, including declining freight volumes, rising costs, and labor unrest. Companies in the industry need to be innovative and efficient in order to remain competitive.
