The Impact of Yellow’s Shutdown Already Being Seen
The news of Yellow’s operational shutdown last Sunday has been circulating like wildfire this week. Yellow has yet to file bankruptcy and is unwilling to give any statements yet on the current situation when requested for comments. Even without definitive actions, the impact, both good and bad, is already being seen. Some carriers will see this as a chance to benefit from Yellow’s downfall. This historic moment opens opportunities to really push for possible solutions with their customers. Either way, eliminating the fifth-largest LTL carrier by volume from the ranking will cause an impact across the board.
According to most experts, the current capacity is sufficient to accommodate Yellow’s freight. However, they anticipate a rapid increase in shipping costs for shippers. Up until this point, freight demand has been down from last year. Shippers were hoping more for overall rate cuts and, at most, only marginally small rate hikes. Yellow’s collapse has flipped that notion on its head. It is now expected that we will most likely see mid to high single-digit rate increases even with shippers that didn’t work directly with Yellow.
We are sure to see this turn of events leave a lasting impact on the trucking market for the foreseeable future. Yellow’s decision to shut its doors after 99 years in business has left upwards of 30,000 employees jobless and wondering what will happen next.
If you have any questions or concerns about your shipments during these unusual times, please contact our team. We are here to help provide you with the best possible solution for your needs.