Jack Cooper drops bid for LTL provider Yellow

Jack Cooper had been involved in negotiations to resurrect the trucking firm, but the group formally withdrew its latest offer last week after a lack of engagement from Yellow. The Tennessee-based company ceased operations and filed for bankruptcy under voluntary Chapter 11 Petitions in August last year, blaming losses from delayed operational changes and conflict with the Teamsters Union.

Yellow was the second largest provider of LTL freight in the US, including parts and materials for the automotive industry, as well as third-party logistics services through its Yellow Logistics division. As of December 31, 2022, the firm had a fleet of 12,700 trucks and completed 14.2m shipments in 2022. The company is in the process of selling these assets to pay off the $1.3 billion owed to secured creditors and potentially billions more to unsecured creditors.

Atlanta-based FVL hauler Jack Cooper has been growing over recent years, having acquired car carrier firm Moore Transport in summer last year, which added 240 car carriers to its fleet.

The firm has been seeing rapid growth for services in Mexico and the most dramatic shift in its service strategy since it started operating there 25 years ago. Sarah Amico, executive chairperson, Jack Cooper previously told Automotive Logistics and Supply Chain Global conference in Dearborn that the company had opened five locations in Mexico last year and added 12 new customers. It is also looking at providing intra-Mexico car haulage services for the first time.

Consolidation is proving to be a growing trend in the FVL sector. One such example is Proficient Auto Logistics’ hope to raise $100m through an initial public offering (IPO) to acquire five other automotive logistics firms, which would expand its fleet to around 1,130 trailers. The Delaware-based FVL trucking firm is seeking to combine with Delta Automotive Services, Deluxe Auto Carriers, Sierra Mountain Group, Proficient Auto Transport and Tribeca Automotive.