Yellow, one of the nation’s largest less-than-truckload (LTL) carriers, is teetering on the edge of bankruptcy and could face a strike as soon as next week.
We examine the situation and offer shippers actionable advice on how to safeguard their business.
Trucking giant Yellow is on the verge of collapse as it grapples with refinancing more than $1 billion of debt that is set to mature next year. The Teamsters union, representing around 22,000 Yellow employees, plans to go on strike as early as July 24 after the company failed to make a $50 million payment for employee benefits.
With Yellow’s stability in question, shippers are taking steps to secure their shipments and protect their supply chains from potential disruptions. Many shippers have already started moving their freight loads from Yellow and its subsidiaries—YRC Freight, Reddaway, New Penn, and Holland—to safer, more reliable LTL carriers.
While we have not received any notifications from Yellow regarding API disruptions, there is still the possibility that their APIs could be shut down or return inaccurate results. To minimize the risk of potential disruptions, we recommend setting up an alternate LTL freight carrier or partnering with a reputable 3PL.
Existing ShipperHQ customers currently using Yellow or its subsidiaries, please refer to this help doc for instructions on how to replace a shipping carrier within ShipperHQ. We are also reaching out to you directly to provide the necessary information and support to ensure smooth operations.
The ShipperHQ Advantage?
Our mission is to be the premier connector in the eCommerce ecosystem, providing our clients with the most seamless and efficient shipping experience possible. As part of this commitment, we have established an extensive network of LTL freight carriers and 3PL providers that merchants can effortlessly connect with and begin using right away.
In times of uncertainty, such as the current situation with Yellow, having a 3PL that works with multiple carriers becomes absolutely essential. By partnering with a reliable 3PL like Kuehne+Nagel, you gain access to the flexibility and expert support needed to adapt swiftly and navigate these uncertain times with confidence.
While the ramifications a potential shutdown of the nation’s fifth largest LTL carrier can have on the market are widespread, the tightening of capacity is undeniably one of the most important. LTL networks are significantly less flexible than other modes of transport so it is critical that shippers have a reallocation strategy ready. Proactively securing capacity will be paramount to supply chain continuity. We have been building contingency plans with our customers over the past few weeks to maintain service levels and manage cost impacts should the situation worsen for Yellow.“Nicola Malaney, Director of eCommerce at Kuehne+Nagel LTL+
We Are Here To Support You
Your business’s success is our top priority. If you have any questions or need further clarification, please don’t hesitate to contact us. Our dedicated support team is ready to help.