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Discussion » Questions » Transportation » The trucking company "Yellow" has closed. What will be the effect on our supply chain?
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The trucking company "Yellow" has closed. What will be the effect on our supply chain?

Will there be shortages, if so what products?

Posted - July 31, 2023

Responses


  • 2898
    I just read about this.  I had no idea there was such a company, so I have no idea what effect it will have.  
      July 31, 2023 6:05 AM MDT
    3

  • 7467
    I did find out this morning that they deliver to Walmart. Additionally the company wanted to make changes to save the company but the union pushed back and wouldn't allow it so they closed.  This post was edited by . at July 31, 2023 3:54 PM MDT
      July 31, 2023 7:44 AM MDT
    2

  • 2898
    If I'm not mistaken, the union indicated that even with an infusion of several million dollars, the company was not able to properly manage itself and that is why they forced it to close.  There's only so long you can mismanage a business before no one will lend you money and there's nothing left but bankruptcy.  I feel bad for the employees, but surely they must have seen this coming.
      July 31, 2023 8:38 AM MDT
    3

  • 7467
    That is too bad a lot of people lost their jobs. I am totally anti-union, if they are smart they will begin again as non-union, pay their drivers well and take steps to fight against the union. 
      July 31, 2023 9:05 AM MDT
    3

  • 2898
    I've never belonged to a union, but if it wasn't for the unions, there wouldn't be whatever decent conditions workers have today.  The problem is that the union higher-ups got greedy and stopped really thinking about the members.  Companies are more than greedy.  Look at the disparity between what the top execs earn and what the rank and file earn.  I can't think of one over-paid CEO that actually deserves to earn millions while the poor slobs that do all the heavy lifting have to scramble for every penny.
      July 31, 2023 11:40 AM MDT
    2

  • 10493
    Except for areas in the southeast, it will probably have a negligible on shipping effect in most areas.  The loss of 30,000 jobs isnt good, buyt hopefully many can find employment elsewhere.  It wasn't the union that made them go under, rather it was a poorly run company (you can't charge customers less than it costs to ship products and expect to stay in business).
      July 31, 2023 11:39 AM MDT
    3

  • 5453
    I don’t think there will be much of an effect on the supply chain.  Yellow Freight was already hemorrhaging customers so most of those have already been going to other LTL carriers.

    The immediate effect will be that if a customer’s freight was in a Yellow Freight trailer or one one of their docks at the time they went out of business, they’ll probably never see it.

    LTL means less-than-truckload.  The way it works is basically it’s a hub-and-spoke system.  The local driver has multiple pickups per day, one to just a few pallets at each stop.  The driver takes it to a small local dock where they unload it then they put all of the stuff going to so the same region on a trailer going to a large regional terminal.  They unload it there and they basically do it all in reverse, they separate the freight by where it’s going and then they send it to a local dock where they unload it to put on the local driver’s trailer who has multiple deliveries of one to a few pallets to drop off at every stop.

    LTL carriers usually contract some of their loads to common carriers and if they go out of business it becomes a nightmare for the contracted trucking companies.  They have to drop everything they’re doing to get all of their trailers out of the LTL carrier’s yard as fast as possible.

    LME (Lakeville Motor Express) was an LTL company that went out of business four years ago.  They have a local dock near me and it’s pretty much the way they left it four years ago.  The trucks and trailers are still where the drivers left them in the yard on the day they closed.

    This post was edited by Livvie at July 31, 2023 6:01 PM MDT
      July 31, 2023 1:54 PM MDT
    2

  • 3684
    Surely other carriers would take over, and once it became known the company was facing bankruptcy its customers would have rapidly moved to protect their systems.
     
      September 17, 2023 4:24 PM MDT
    0