Freight Shocks: Yellow Corp's Downfall
The Teamsters union, which speaks for 22,000 Yellow Corp employees, has shared that the company has stopped working and declared bankruptcy. Yet, no public statements about this have come from either Yellow Corp itself or Apollo Global Management, who holds one of the company's key loans.
Over the next weeks and months, all LTL (Less than Truckload) shipments will probably be slower and might cost more until the market finds its balance. LTL delivery was already a problem and it looks like it will get worse.
Yellow Corp's role in the industry is significant. It is one of the largest freight carriers that consolidate loads from multiple customers, without needing a full truckload. If Yellow Corp stops operating, it could risk 30,000 jobs.
Satish Jindel, who runs the transport and logistics consulting company SJ Consulting, said that Yellow Corp was making 49,000 shipments per day on average in 2022. But last week, this number fell to between 10,000 and 15,000. Jindel believes that Yellow Corp's bankruptcy could be its end, as its chances of survival and keeping solvent are falling each day.
Considering Yellow Corp's bankruptcy, we understand this could affect our mining equipment deliveries. Our ASICXchange logistics team is keeping a close eye on the situation and taking steps to keep any impact on our customers as small as possible. Rest assured, we are unwavering in our commitment to navigate these challenges with the utmost diligence to ensure your orders reach you in a timely and secure manner.