Yellow Corp. trucks are soon going to flood the market for used trucks after their bankruptcy closes the company. The market is expected to be swamped with unprecedented numbers of trucks at auction, but analysts expect the market to be able to handle the count, as the demand is there. President of the auctioneering company, Taylor & Martin Inc., Stacy Tracy, gave a statement stating that the size of liquidation that is coming to the market has not been seen for decades. She went on to say that the sales were by far the largest in terms of value in the history of the trucking industry. According to her, she confirms the market is ready and is excitedly anticipating this volume of sales.
The reason that the volume is expected to do well in the market is because the sales are not happening all at once, but rather being spread out.
The organizers of the used market sales are purposely spreading out the actual release of the trucks in order to maintain steady sales. By spreading out the sales, they prevent the market from becoming overwhelmed and allow themselves to maximize profits.
One unfortunate aspect of the mass volume of trucks coming soon to the used market is that it will not fill a large gap that still exists in the industry. Since the pandemic, there have been countless shortages of equipment. Even with the inundation of the tractors and trailers, there will still be a significant gap where the equipment shortage has been for years.
Expected to hit the market from Yellow Corp are the roughly 12,700 tractors and 42,000 trailers that they owned prior to bankruptcy.
A large number of their vehicles are also fairly new, as they replaced about a third of their older fleet in 2022. In 2021, they made a large purchase to replace a chunk of their fleet as well. They paid for these purchases using funds from their $700 million loan from the Department of Treasury of the United States. These new vehicles are some of what are expected to hit the used market soon.