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Yellow | Celadon Group Makes Bankruptcy Official, Shuts Down After 34 Years

Freightmaster1 said:
Celadon’s drivers represent about 0.3 percent of the latter number, and the company’s experienced drivers are likely to find new work quickly, as truckload carriers in particular claim to be suffering a shortage of qualified drivers. The ATA estimates truckload carriers could use 59,500 additional drivers to move freight in 2019, and expects that number to swell.

The bankruptcy means other big carriers will keep getting bigger as they absorb Celadon’s customers and revenue. The 25 largest US truckload carriers, including Celadon, increased their combined revenue 25 percent between 2012 and 2018, when the combined total reached $31.9 billion, according to transportation research firm SJ Consulting Group.

“This is the first truckload carrier of this size in my 30 years in the industry to be filing bankruptcy, but I don’t think it’s going to have a material impact,” said Satish Jindel, president of SJ Consulting Group. “They had $762 million revenue in 2018, but they’ve been shrinking rapidly.” SJ Consulting conducts its own analysis of public and privately-owned carrier revenue.

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There you go. Got it straight from Satish.
 
Freightmaster1 said:
Shippers that used Celadon for US-Mexican freight will find fewer competitors in cross-border lanes. Truckload carriers US Truck, US Xpress, and Covenant Transport ended service to the Mexican interior this year. That’s creating more opportunity for companies such as Werner Enterprises, CFI, and Swift Transportation. “This is becoming a trend now,” said Ryley.

PAM Transport could also benefit because of its auto exposure. “The major motor carriers haul for all the Fortune 100 companies, so they’ll pick up a few extra loads on a weekly basis and the rest will fall into the market and be quickly covered by small carriers,” Dunn said.
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I’ve noticed less and less Celadon trucks each year from three years ago. Where I used to be passed by what seemed like Fleets of Celedon headed to Mexico, I have only been seeing 2-3 Celadons a month, running single, and mostly OOs, or Lease Operators. Werner and CFI have replaced them coming from the Chihauhau area this past year. Except for the remaining drivers looking for a job, and the tax revenue to Indianapolis, I don’t think America will miss them at all.
 
Freightmaster1 said:
As a result, capacity doesn’t really exit the market: It is “realigned,” Silverman said. Plenty of companies, he said, have trucks sitting parked against the fence right now. They can hire Celadon drivers and put them to work without having to purchase new equipment.

The bankruptcy is not expected to have a broad impact on truckload pricing, which has remained depressed in 2019 despite an increase in the number of carrier failures. “For the customers who were using Celadon, which may have had some aggressive pricing, they may see a mid-to-high single-digit increase in their pricing,” said SJ Consulting’s Jindel.
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In Central Indiana, heading to Laredo, I expect many of their automotive shippers will switch to Carter Express, who is seen as Celadon’s main Indiana competitor. Carter, like Celadon, uses mostly Lease to Own drivers. Pam has also gone to this driver model.
 
Kennesaw Kid said:
They can't....that is why they were arrested and charged with fraud.
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Agree and it seems some try to push in to limits till they get caught ! Maybe take 2-3 years to go to court ,but it will be interesting to see if they will serve any jail time or not ??
 
jimmy g said:
I’ve noticed less and less Celadon trucks each year from three years ago. Where I used to be passed by what seemed like Fleets of Celedon headed to Mexico, I have only been seeing 2-3 Celadons a month, running single, and mostly OOs, or Lease Operators. Werner and CFI have replaced them coming from the Chihauhau area this past year. Except for the remaining drivers looking for a job, and the tax revenue to Indianapolis, I don’t think America will miss them at all.
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The 4000 employees will miss them when there's no paychecks right before the Holidays!
:chairshot:
 
There is no good time of year for your company to close their doors.
But 2 weeks before Christmas,as got to be a real bummer.

So what happens to Lands-air?
I read they were bought by the Celadon TL division.
Are they going to keep going?
 
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