Yellow titled their press release with “International Brotherhood of Teamsters Drives Nearly 100-Year-Old Company Out of Business 30,000 American Jobs Lost.”
As economic conditions continue to worsen in the United States two large transportation companies have filed for bankruptcy, laying off tens of thousands of employees countrywide, which most likely will create more shortages and longer delays throughout the U.S.
Surge
Jacksonville, Florida-based Surge Transportation, a digital freight brokerage, announced that they filed Chapter 11 Bankruptcy on July 28th, Freight Waves reported.
In the first half of 2022, demand for excess motor carrier capacity dramatically contracted. In an effort to maintain volume, [Surge] cut its rates. While lower rates resulted in more brokered jobs, they also reduced [Surge’s] profit margins and its previous robust financial situation quickly began to erode.
According to court filings.
Omar Singh, founder and president of Surge Transportation, told Freight Waves in a statement that U.S. Bankruptcy Judge Jacob A. Brown approved the brokerage’s restructuring plan.
The U.S. Bankruptcy Court (MDFL) has approved Triumph as the debtor in possession (DIP) factor for Surge on an interim basis. Triumph and Surge are committed to working together with customers, carriers and factors to make prompt payment of all post-petition accounts. To accomplish that goal on terms most favorable to carriers hauling freight, payments on accounts purchased by Triumph will be paid to carriers or their factor within three days of purchase by Triumph at no charge to the carrier or factor.
Singh said.
Freight Waves provided some additional insights into how the company landed itself in this position…
