In August of 2023, Yellow Freight Service filed for bankruptcy, and the near-100-year-old company ceased all business operations. As the fallout from that continues, 128 of their 169 properties sold for a whopping $1.9 billion. Among the buyers, the most notable is XPO, who is purchasing 28 of Yellow’s locations totaling $870 million. XPO purchasing these locations signals an increased commitment to their 2027 goals. Already listed as #5 on Transport Topics Top 100 list of largest for-hire carriers in North America, this move enhances their operating ability and footprint in areas which they were previously constrained.
Other buyers of Yellow’s properties include Estes Express, Saia, and Knight-Swift. XPO is acquiring locations in Ohio, Pennsylvania, Tennessee, North Carolina, Georgia, California, and several other strategically advantageous locations across the country. Another 46 properties remain available for purchase. Another prominent industry leader, Old Dominion, failed to land any properties after they were outbid in the initial sale. It’s unclear if these giants will continue to pursue the remaining locations, as the most attractive locations were purchased during the initial sell-off. A hearing is scheduled for December 12th to confirm the sale.
What does this mean for the industry as a whole? There is a firm commitment by these companies to continue their growth and keep up with industry demand for LTL (Less-than-truckload) freight services. Maintaining growth and profitability is at the forefront of these companies’ minds, as they all seek to avoid the fate of Yellow Freight Services.
Source: https://www.ttnews.com/articles/xpo-yellow-terminal-auction
