American truck drivers are raising concerns over the Biden administration's plan to push for the heavy-duty vehicle sector to go all-electric, citing limitations in electric vehicle technology such as battery performance in cold weather, shorter range, and longer charging times. They argue that the lack of high-powered charging infrastructure and power grid upgrades needed for fueling vehicles would present additional problems. Industry groups and individual truckers are criticizing the regulations as burdensome and expensive, while the EPA defends the rules, stating that they will deliver substantial public health benefits.
The Biden administration's new emissions regulations for heavy-duty vehicles have sparked outrage among small business truckers, with the Owner-Operator Independent Drivers Association warning that the measures could put many independent drivers out of business. The regulations, announced by the Environmental Protection Agency, aim to make a large number of trucks and buses zero-emissions by 2032, but critics argue that the operational challenges and infrastructure requirements pose significant obstacles. The administration claims the regulations will lead to significant greenhouse gas emissions reductions and societal benefits, but industry representatives are concerned about the practicality and potential impact on livelihoods.
Bankrupt trucking company Yellow Corp has received court approval to sell most of its shipping centers and real estate to multiple buyers for $1.88 billion, effectively ending a bidder's attempt to keep the company intact. The sale will generate enough cash to pay off the company's pre-bankruptcy debt, including a $700 million COVID-19 relief loan. Yellow is still seeking buyers for its remaining real estate and fleet of trucks. Despite pressure to keep the company intact to save jobs, Yellow chose to break up its assets. Trucking company XPO Inc was the largest buyer in the approved sale, acquiring 28 shipping centers for $870 million.
A group of investors led by trucking executive Sarah Riggs Amico is attempting to salvage bankrupt trucking giant Yellow (formerly YRC) with a billion-dollar bid, but executives from the company have turned down the offer. The investors are hoping that the courts and the Treasury Department will allow them to prevail, but the Treasury Department has stated that the $700 million CARES Act loan cannot be modified. A bipartisan group of senators has supported efforts to save Yellow and its 30,000 jobs. Yellow's closure has disrupted the lives of truckers and left a void in the economy, but experts say the impact on the industry has been minimal. The less-than-truckload (LTL) market, which Yellow operated in, has seen increased rates since Yellow's closure, but overall, the market has been able to absorb the loss. Amico and her investors face challenges in navigating auctions, regulations, and obtaining court and government approval for their rescue package.
Defunct cargo hauler Yellow Corp has rejected an offer to revive its operations, stating that the offer is unlikely to cover the costs of its bankruptcy case and restructuring fees. Yellow Corp has been out of business for several months and is nearing the end of an auction process that will bring creditors at least $1.9 billion.
The freight recession currently impacting the trucking industry is unlike any other in history due to the significant role played by freight brokerages. Over the past two decades, freight brokerages have grown from representing just 6% of the market to handling more than 20% of all trucking freight. They have reshaped the typical freight cycle by offering a more compelling product than asset-based carriers, leading to multiple brokerages being in primary positions in shippers' routing guides. This has benefited small carriers, who rely on brokerages for leads and business. However, the current recession has been slower to purge capacity due to the proliferation of freight brokers, who have maintained load volumes even as rates fall. It is predicted that it will take approximately 78 weeks for the market to reach a balance between supply and demand.
Parked semi-trucks pose a danger to drivers, with thousands of accidents and fatalities occurring near interstate on and off ramps. The lack of available parking spots for big trucks forces drivers to park in unsafe areas, leading to collisions. Transportation Secretary Pete Buttigieg acknowledges the problem and emphasizes the need for safe parking options. Efforts are being made to expand truck parking at rest stops through federal funding, and legislation is being proposed to allocate additional funds for truck parking expansion. The push for change comes after tragic accidents, such as a collision involving a Greyhound bus and parked semi-trucks in Illinois. Families affected by these accidents are calling for stricter laws to restrict big rig parking.
Truckers are warning that the Environmental Protection Agency's (EPA) new emission standards, aimed at reducing air pollution from heavy-duty engines and vehicles, will have catastrophic effects on the American food supply. The trucking industry, which is predominantly made up of small businesses, argues that complying with the EPA's clean energy mandates will push many companies out of business, leading to a tightening of trucking capacity and severe price inflation. Truckers also express concerns about the practicality of electric vehicles, including limited driving range and the weight of lithium batteries, which would result in reduced payload capacity. Critics argue that the regulations prioritize green energy over the economy and fail to address infrastructure and testing challenges.
Estes Express Lines has offered $1.3 billion to purchase all of bankrupt trucking company Yellow Corp.'s terminals, in a bid that could serve as the starting price for an auction. Yellow Corp., which filed for bankruptcy earlier this month, plans to sell its tractor-trailers as well. If Estes Express Lines is outbid, it will have to increase its offer or miss out on the deal. The sale would expand Estes' terminal network and potentially lead to workforce and truck fleet expansions. Yellow Corp. is also set to receive bankruptcy loans from Citadel and MFN Partners.
Yellow Corp, one of the largest trucking companies in the US, is shutting down, resulting in hundreds of layoffs in Oregon and an estimated 30,000 nationwide. The layoffs are expected to further impact an already struggling supply chain. The trucking industry in Oregon, which makes up over 100,000 jobs, heavily relies on trucks for transportation. Despite the setback, efforts are being made to help the laid-off drivers find employment in the trucking industry, which is already facing a shortage of around 80,000 drivers.
Creditors led by Apollo Global Management are close to finalizing a deal to provide Yellow Corp with fresh cash during its upcoming bankruptcy, according to sources. Apollo, which owns a majority of Yellow's term loans, is well-positioned to lead a debtor-in-possession financing for the struggling trucking company. Yellow, the third-largest trucking company in the US, has been grappling with a decline in freight volumes and a drop in e-commerce shipments. The company recently averted a strike by paying over $50 million in owed benefits and pension accruals. Yellow has a total debt of $1.54 billion and faces $1.3 billion in debt payments due in 2024.
Yellow Corp, a trucking company, has announced the cessation of all operations, leaving approximately 30,000 workers without jobs. The company, which was once a major player in the industry, had been struggling with a significant decline in customers and difficulties in repaying a $700 million pandemic-era loan. Tensions between Unionized Workers and the Teamsters further exacerbated the situation. As former Yellow customers turn to other carriers, shipping prices are expected to rise. Workers like Jay Repka, who received less than 24 hours' notice before being laid off, are already feeling the impact on their livelihoods. The company is anticipated to file for bankruptcy soon.
Yellow Corp, formerly known as YRC Worldwide Inc., is expected to file for bankruptcy after ceasing operations nationwide and laying off employees. The company, which grew through acquisitions to become the fifth-largest trucking firm in the US, has been burdened by a significant debt load. Despite receiving a $700 million pandemic-era loan in 2020, a congressional probe found that the company's financial position posed a risk to taxpayers. Yellow's attempt to restructure and reduce redundancy through its "One Yellow" initiative was met with resistance from the Teamsters union, leading to a standoff. The union's opposition and the threat of a strike caused customers to flee, exacerbating the company's financial troubles. The Teamsters union claims that Yellow's demise was due to mismanagement, while others argue that the union overplayed its hand in opposing the restructuring efforts.
Yellow Corp, a 99-year old trucking company, has ceased operations and will lay off all 30,000 of its workers. The company had been in a battle with the Teamsters union over pension and health insurance contributions. Despite receiving a $700 million loan from the federal government in 2020, Yellow Corp still owed the Treasury department over $700 million. The closure of Yellow Corp will impact its employees, customers, and US taxpayers. While it is not expected to cause significant disruptions in supply chains, it will lead to higher rates for shippers who relied on Yellow's low-cost services.
Yellow Freight, one of the largest trucking firms in the US, is reportedly preparing to file for bankruptcy protection, resulting in the loss of jobs for at least 22,000 employees nationwide. The company, which recently moved its headquarters from Overland Park to Nashville, has begun laying off employees in the Kansas City area. The layoffs come after contract negotiations between Yellow and the International Brotherhood of Teamsters broke down, leading some customers to choose alternative freight options. Reports suggest that Yellow failed to pay for employee healthcare benefits and was not planning to do so in the coming months.
