Nashville, July 31 - U.S. transportation giant Yellow Corp. announced its shutdown and immediate cessation of operations, a sudden move that has shocked the freight industry and will leave approximately 30,000 employees jobless.

According to The Wall Street Journal, this is the largest bankruptcy in the history of the U.S. trucking industry. Yellow Corp. is now preparing to file for bankruptcy and is negotiating the sale of all or part of its business.

The International Brotherhood of Teamsters stated that this is a sad day for workers and the U.S. freight industry.

Yellow Corporation currently has approximately $1.5 billion in outstanding debt, including about $730 million owed to the federal government. First-quarter results this year showed a loss of $54.6 million. As of June 30, Yellows cash and cash equivalents stood at just $100 million.

Earlier, Yellow Corp. avoided a strike threat from 22,000 truck drivers representing workers after paying over $50 million in overdue worker benefits and pensions.

YellowRoadway Group, founded in 1924 with 99 years of history, once achieved annual sales of up to $9.5 billion and was consecutively named the most admired transportation company by Fortune magazine for three years.

The companys clients include major retailers such as Walmart and Home Depot, as well as freight giant UberFreight, some of which have suspended cooperation due to concerns about potential loss or delay of goods.

Historically, in 2020, the administration of former U.S. President Donald Trump provided a $700 million pandemic relief loan to rescue Yellow Corp. in exchange for a 30% stake.

The shutdown of Yellow Corp. is not only a significant loss for the transportation industry but also signals potential challenges and uncertainties facing the entire sector. Analysts suggest this may trigger a series of supply chain issues, further exacerbating global supply chain tensions.