This week, Optimum Logistics has curated a collection of summaries from recent news articles related to the trucking and industrial staffing industry. Keep reading to learn more about updates from Estes Express, Yellow Corp, trucking-related legislation from Congress, and the myth of the industry’s driver shortage. For each story, you will get a quick synopsis of the topic, forming the perfect balance between info and entertainment. Be sure to leave your thoughts and experiences in the comments section at the end of this post and check back next week for more updates from the trucking and industrial staffing industry.
Estes Express Enhances Stalking Horse Offer
Estes Express, a dominant force in American trucking, has outpaced its competitors with a revised stalking horse bid of $1.525 billion in cash, aiming to acquire the shipment centers of the bankruptcy-bound Yellow Corp. This bid, unveiled in a recent bankruptcy court filing, overshadows Old Dominion Freight Line Inc’s $1.5 billion bid from August. Notably, Estes’ bid stands out, significantly surpassing its prior offer of $1.3 billion from last month. The revamped offer boasts a diminished breakup fee coupled with extensive financial terms. Remarkably, 540 potential buyers have shown interest in Yellow, with 307 signing confidentiality pacts to view the firm’s assets.
Yellow Corp Seeks Buyer
Facing financial turmoil, Yellow Co. suspended its operations on July 30, eventually filing for bankruptcy protection in the subsequent month. With a modest $39 million in liquid assets at the time of filing, the firm acknowledged its financial constraints, deeming it insufficient to support an extended bankruptcy sale, spanning its 12,000 trucks, real estate, and other significant assets. Consequently, Yellow Co. has been on a rigorous hunt for potential buyers to salvage its assets and restore its financial health.
A Chance for Yellow Co.
Competitive bids emerging from Estes Express and Old Dominion Freight Line Inc. might pave the way for Yellow Corp. to garner a higher valuation for their assets, alongside a reduced bid protection fee. Such a transaction holds the promise of rejuvenating the beleaguered firm while ensuring a mutually advantageous financial arrangement for both parties involved.
🔗 A Closed Look at the Bankruptcy Bidding
Bill Passing in Congress is Unlikely
The 117th Congress has witnessed an inundation of trucking-focused bills. Proposals vary from advocating raised federal weight limits on interstates, enlarging truck parking facilities, to simplifying the process for CDL issuance. A detailed analysis by GovTrack.us reveals startling statistics: out of 15,055 introduced bills, a mere 11% advanced past committee. Even more telling, only 21% of those reaching the House or Senate floor secured enactment.
One Bill Chances for Passage Are Greater Than 50%
In a sea of trucking-oriented bills, GovTrack bestows only H.R. 3013 – termed the LICENSE Act – with over a 50% probability of being ratified. This act aspires to update CDL examiner prerequisites and empower states to conduct CDL driving tests for candidates from other states. Notably, post-committee reporting on May 23, 2023, the act was recommended to the Senate Commerce Committee, aligning with its companion bill, S. 1649.
Despite Low Chances for Passage
While Congress’s track record for bill ratification is modest, trucking-specific bills like H.R. 1435, dubbed the Preserving the Choice in Vehicle Purchases Act, have seen positive movement. Parallel prospects are observed for H.R. 3372 and 3408. As these bills navigate Congress, the odds for their approval seem increasingly promising.
🔗 Learn more about Congress and potential trucking legislation here
Shortage Myth
Contrary to popular belief stemming from the Covid-19 pandemic, the trucking industry isn’t grappling with a drastic driver shortage. Instead, it’s been an age-old struggle to retain sufficient personnel content with the industry’s modest compensation.
Boom & Bust
A fleeting growth phase engulfed the trucking industry when a multitude of factors, ranging from plummeting global goods demand, favorable diesel prices, to governmental financial aids, converged. This, however, was a transient surge as businesses over-ordered to meet demand expectations.
Fall & Painful Burden
This inflated growth was unsustainable, leading to a precipitous crash, particularly impacting newly inducted truckers. Presently, the majority of spot market drivers grapple with economic hardships, with some, like Jacqueline Jolly and her spouse, buried in debt, reverting to their former professions.
Long-Term Struggles
As freight rates continue their downward trajectory, larger trucking corporations, enduring these trying times, often employ greenhorn drivers, inadvertently posing potential road safety risks. While the trucker shortage discourse might have receded for now, history suggests it’s bound to re-emerge, reigniting the cyclical pattern of boom and bust.
Before You Hit The Road…
The trucking and industrial staffing industry is constantly on the move, with updates and changes occurring day in and day out. This week, we’ve provided a comprehensive collection of recent news articles, giving you a glimpse into the stories making big waves in the industry.
As a reader of Optimum Logistics, we want to hear from you! Leave your opinion of the topics discussed in the comments section below and don’t forget to check back next week for another edition of Optimum Logistic’s weekly news recap.
If you made it to this part of the article, we’d just like to take a moment to thank you for taking the time to read this weekly recap. Be safe out there and as always, If you’re in search of CDL A, B, or warehouse positions, check out our open positions. And if you need staffing solutions for commercial driving or industrial positions, be sure to explore our offerings.
