Trucking Trouble, Consumers Driving to Debt, and Mall Mania

Yellow and Convoy’s bankruptcies: Yellow, a 99-year-old trucking company, filed for bankruptcy in August 2023 after failing to pay its pension and health insurance obligations to its unionized workers. The company also lost customers and revenue due to the pandemic and its high debt load from acquisitions. Convoy, a digital freight brokerage startup, shut down in July 2023 after failing to find a buyer. The company faced fierce competition from other players, such as Uber Freight and Amazon Logistics, as well as regulatory and legal challenges. The company also struggled with the volatility and uncertainty of the freight market, which was affected by the pandemic, the chip shortage, the labor shortage, and the climate crisis. Late car loan payments hit record: Late car loan payments hit a record high in September 2023, as many Americans struggle to keep up with their monthly bills amid rising inflation, interest rates, and living costs. According to a Fitch Ratings report, the percentage of auto borrowers who were at least 60 days late on their payments rose to 6.11% in September 2023. This is the highest default level in nearly three decades and a notable increase from the previous record of 5.93% in January 20231. The delinquency rate was incredibly high for subprime borrowers, those with credit scores below 640, who accounted for 6.11% of the late payments in September 2023, up from 5.01% in June 2023. Annual visits to strip malls increased 18% last year compared with before the pandemic: A data analysis by Placer.ai, a transportation data company, shows that shopper visits to malls have rebounded after the pandemic. The study, which analyzed foot traffic at more than two dozen “top-tier” malls across the country, found that as of June, national mall visitor numbers exceeded pre-pandemic levels by 5%. This comes after visitation dropped by 91% in April 2020, the height of the pandemic. Chicago has seen the biggest recovery in mall visits, with an 18% increase in June compared to January 2020. The report authors suggest that the spike in mall visits is likely due to possible “revenge spending” and “pent-up demand” after nearly 18 months of restrictions. Follow on Instagram: @trendi_pod.