Thousands of semi-trailers and 33,000 workers, including drivers, are idled across the country as Yellow Corp. shut down its US trucking operations Monday. What does the move mean for business in SW Michigan—especially small and medium businesses?
Yellow specialized in LTL shipping: ‘Less Than a Load”. So, its trailers often contained cargo headed for several different businesses.f This combination of shipments often allowed a price break and optimal timing for the businesses using Yellow and similar LTL truckers. Now that economy may be lost, or at least significantly impacted by substantially fewer trucks available for such LTL shipments.
Alex Mai, a trucker who runs a YouTube channel about the industry, told National Public Radio that the Yellow Corp. shutdown will clearly be felt on Main Street. “If a business has to pay more, the consumer will pay more,” he said, seemingly stating the obvious, but underlining the importance of his words.
Mai said Yellow was often a more affordable alternative to bigger name trucking companies or package delivery firms like UPS or FedEx. Mai pointed out that Yellow was around for 99 years, “three generations of trucking families” as he put it. He said many truckers will face loss of pension or retirement plans. Some will retain some of their health insurance through the Teamsters.
Many truckers and industry watchers are asking what happened to a $700 million bailout loan from the Federal government during the Trump Administration. The loan, which gave the government in some fashion a 30% stake in Yellow will likely be lost if the firm follows through with bankruptcy, as expected.
Mai said it’s a sorry situation for many independent truckers right now. He cited estimates that they are paid, on average, $1.20 per mile to deliver their cargo, while it often costs them #1.50 a mile to operate their trucks.
Not surprisingly, the Teamsters Union, representing drivers and other trucking industry employees, has been highly critical of Yellow Corp., charging it’s been mismanaged for years. Yellow officials have been quiet so far, since the news started breaking over the weekend of the impend9ing shutdown and looming bankruptcy.
The closest Yellow Corp. freight terminal is on Olive Street in South Bend.
