Yellow Corp, one of the largest US trucking companies

Yellow Corp, one of the largest US trucking companies, is shutting down operations and filing for bankruptcy after years of financial struggles. The company's closure puts 30,000 jobs at risk and leaves billions of dollars in business up for grabs in the weakened freight market.

Financial Struggles and Bankruptcy

Yellow Corp had been in operation for nearly 100 years, but its financial challenges snowballed, leading it to accumulate more than $1 billion in debt. As of late March, Yellow had outstanding debt of roughly $1.5 billion, with $1.3 billion in loans that come due next year, including $729.2 million owed to the federal government. In 2020, under the Trump administration, the Treasury Department granted the company a $700 million pandemic-era loan on national security grounds. Last month, a congressional probe concluded that the Treasury and Defense Departments "made missteps" in this decision and noted that Yellow's "precarious financial position at the time of the loan."

Impact on the Trucking Industry

The shutdown of Yellow Corp could have ripple effects for truckers and the transportation industry as a whole. As one of the country's largest carriers specializing in small freights that don't quite take up a full truck, the closure of Yellow would likely affect how certain goods will continue to be delivered. Companies such as FedEx Corp. and Old Dominion Freight Line Inc. are expected to compete to absorb the freight, and the reduction in excess capacity may allow carriers to raise prices.

A Look at Yellow Corp's Financials

Yellow Corp's financials reveal a company struggling to maintain profitability.