August 9, 2023
CBS Austin recently published an article featuring Jay Zagorsky, Associate Professor of Markets, Public Policy, and Law, discussing the bankruptcy of one of the largest trucking companies in the U.S., Yellow.
The company has been experiencing financial issues for years, recently going under in one of the largest trucking company failures. While Yellow claims the reason they suffered bankruptcy was correlated with the Teamsters union, other factors like decreased consumer spending are to blame too.
Jay emphasizes this, adding that, “Yellow’s collapse is like having chest pains in the middle of the day while near a major hospital. If the collapse happened during COVID it would have been like having chest pains in the middle of the night while camping in the deep woods.”
With 30,000 employees, and around 12,000 trucks, Yellow’s decline will have an effect on the market share for the truckload sector along with interruptions with shipping.