[cmyx6go]

So, what do my fellow US supply chain peeps think? It looks like this is inevitable. They laid off a shit load of people today. It's a shame. Yellow has 30,000 employees. I remember when they bought Roadway 20ish years ago. They were then #1 and 2 in the LTL world. Can the rest of the LTL players suck up the freight? I wonder if there will be any trickle down that will impact this crazy truckload market. We shall see.

https://www.yahoo.com/finance/news/y...164904212.html

[bagekko]

Initial thought was bankruptcy doesn't always mean it's going out of business, but sounds like this might be. They are less than 10% of LTL right now. One of the other trucking companies will get a great deal buying them cheap..... but the US govt ie taxpayers own 30% of yellow.... Like the logistics world needs anymore disruption....great

[UncleWede]

Originally Posted by cmyx6go

So, what do my fellow US supply chain peeps think? It looks like this is inevitable. They laid off a shit load of people today. It's a shame. Yellow has 30,000 employees. I remember when they bought Roadway 20ish years ago. They were then #1 and 2 in the LTL world. Can the rest of the LTL players suck up the freight? I wonder if there will be any trickle down that will impact this crazy truckload market. We shall see.

https://www.yahoo.com/finance/news/y...164904212.html

Acquisition in your future???

[cmyx6go]

Originally Posted by UncleWede

Acquisition in your future???

That’s a bit of a stretch for me, Unc! Whoever scoops it up still has to deal with the teamsters, I imagine.

[Car-Addicted]

Always interesting to see what the communists think. The UPS chess game continues.

O’Brien and the Teamsters appear unconcerned by the idea of Yellow closing and 22,000 union jobs being eliminated. As of this writing, they have made no public comment about the potential of an imminent Yellow bankruptcy. As far as the Teamsters are concerned the loss of 22,000 jobs is a small price to pay to keep UPS workers isolated. Moreover, Yellow’s reduced pension payments make Yellow workers a burden on the Central States Pension Fund, long used as a slush fund for union officials.

https://www.wsws.org/en/articles/202.../yell-j28.html

[cmyx6go]

Originally Posted by Car-Addicted

Always interesting to see what the communists think. The UPS chess game continues.

O’Brien and the Teamsters appear unconcerned by the idea of Yellow closing and 22,000 union jobs being eliminated. As of this writing, they have made no public comment about the potential of an imminent Yellow bankruptcy. As far as the Teamsters are concerned the loss of 22,000 jobs is a small price to pay to keep UPS workers isolated. Moreover, Yellow’s reduced pension payments make Yellow workers a burden on the Central States Pension Fund, long used as a slush fund for union officials.

https://www.wsws.org/en/articles/202.../yell-j28.html

I know Yellow had financial issues other than the union but it boggles my brain that the union has been so cavalier. It seems the union would rather have 20,000 members lose their jobs than negotiate. Pretty screwed up.

[Car-Addicted]

UPS and Teamsters reach a labor deal, potentially avoiding a crippling strike
Tue July 25, 2023
The tentative agreement still needs to be ratified by about 340,000 Teamsters at UPS to end the threat of a strike altogether.

O’Brien made his opposition to that contract the major issue in his election campaign. O’Brien told CNN earlier this year that he was confident a tentative union deal would be ratified. But he said that members are angry with UPS, particularly because a number of other companies, including non-union FedEx, increased pay for workers during the pandemic.

“There is a lot a lot of animosity and anger not just during the last contract but what happened during the pandemic,” O’Brien told CNN in June. “They weren’t rewarded as UPS made record profits.”

Spurred on by a surge of online shopping during the pandemic, UPS posted 2022 profits of $11.3 billion, nearly doubling to repeated record levels during the current five-year contract.

The Teamsters said the deal will cost UPS about $30 billion in additional spending during the life of the five-year life of the contract. UPS would not comment on that estimate, but it said it would be detailing its own estimate of the cost when it reports second quarter earnings on August 8.

Shares of UPS were down 1.5% in afternoon trading.

https://www.cnn.com/2023/07/25/busin...ike/index.html

[vreihen16]

Originally Posted by bagekko

...but the US govt ie taxpayers own 30% of yellow...

Does "too big to fail" come into play?

Can't say I'm happy, because our town will be losing tax revenue on several hundred dock spaces if they shut down.....

[zx10guy]

Since the supply chain issues began, I wonder how many independent truckers entered the market. A good friend of mine got his CDL and purchased his own big rig and is now running freight.

[M_Six]

Wow. I grew up very near a Yellow Trucking terminal. Saw them all the time. Dad spent his career in trucking, finally retiring from APA Trucking, which was based in North Bergen, NJ. They went under as well.

[Ginster6]

It is getting bad out there.

I am a Oakland port based, I have my own company with 3 semi... and do drayage for the rail.. and it is damn slow...

lucky that is only my side business.

[chassis]

YRC stock has underperformed for years. The freight market as stated above, and shown below, is soft now. Other companies in the trucking space are doing well; they happen to be well-managed.

[Car-Addicted]

So the Teamsters went with the UPS contract because it was obviously more lucrative. When the UPS contract was signed Yellow Freight couldn't match the labor deal that UPS signed so the only choice was bankruptcy. Will see if reorganization will leave the Teamsters out.

[cmyx6go]

Originally Posted by chassis

YRC stock has underperformed for years. The freight market as stated above, and shown below, is soft now. Other companies in the trucking space are doing well; they happen to be well-managed.

The market is really soft. Demand and rates have plummeted from the crazy all time highs we had for about two years. In a lot of markets truckload rates are half of what they were a year ago. New comers to the industry didn’t understand the pendulum swings. They got in when things were booming but didn’t realize what goes up, comes down. Over 30,000 trucking companies went out of business this year. Keep in mind, most trucking companies in the country are small and operate 10 or less trucks. Granted Yellow is a different segment being LTL. No one in trucking is “doing well”. They are just doing better than others. It sucks out there right now.

[Manny01]

I'm an unabashed capitalist, but I wouldn't blame the Union here for Yellow's demise. Yellow is a terribly run company and has been for years. Their on-time performance, damage and claims rate, billing accuracy, free cash flows, OR, etc. are all industry worse.

The unfortunately reality is we don't need Yellow. There's enough capacity with the other big LTL carriers (OD, XPO, SAIA, UPS, etc.) to absorb their customer's freight comfortably.

[Car-Addicted]

Originally Posted by Manny01

I'm an unabashed capitalist, but I wouldn't blame the Union here for Yellow's demise.

I agree and I'm not blaming the Teamsters but in this situation they were the 800lbs gorilla in the room.

It is very disturbing when there is such weakness in the supply side. Transportation is proverbial canary in the coal mine.

[nerdogray]

My father worked in upper-middle management for Yellow for a long time.. worked in trucking management beginning with Transcon way back. The environment at Yellow was rough, and the teamsters were absolute thugs. My father would promote based on merit, and often-times time this meant individuals whose demographic wasn't a favorite would get promoted over some other "good ol' boy." He had to keep a gun in his office. This was long ago, but I'm sure they didn't change much. He ultimately got stabbed in the back (figuratively) by another manager vying for a position above them. So one could easily find antagonism from all sides.

[F32Fleet]

They missed a payment to the pension fund last month or so per the WSJ and they were trying to find debt financing. I know people who refuse to use them.

[ErikJ1]

Originally Posted by Car-Addicted

So the Teamsters went with the UPS contract because it was obviously more lucrative. When the UPS contract was signed Yellow Freight couldn't match the labor deal that UPS signed so the only choice was bankruptcy. Will see if reorganization will leave the Teamsters out.

Commies do commie shit...The Party reigns supreme. Always. 20,000 " deaths" mean nothing.

[cmyx6go]

They closed their doors....

https://www.freightwaves.com/news/te...ing-bankruptcy

[chassis]

Originally Posted by cmyx6go

The market is really soft. Demand and rates have plummeted from the crazy all time highs we had for about two years. In a lot of markets truckload rates are half of what they were a year ago. New comers to the industry didn’t understand the pendulum swings. They got in when things were booming but didn’t realize what goes up, comes down. Over 30,000 trucking companies went out of business this year. Keep in mind, most trucking companies in the country are small and operate 10 or less trucks. Granted Yellow is a different segment being LTL. No one in trucking is “doing well”. They are just doing better than others. It sucks out there right now.

cmyx6go are you in the business?

Trucking as you mention has many small operators. Cowboys (and worse) and mom-and-pop shops. It's a good example of both entrepreneurialism (opportunity) and capitalism (the market is a harsh mistress).

It has always been this way. Truckers going out of, and entering, the business is nothing new. What's new here in your view?

[Car-Addicted]

Originally Posted by chassis

It's a good example of both entrepreneurialism (opportunity) and capitalism (the market is a harsh mistress).

Is it capitalism when Unions are involved or is it crony capitalism?