Yellow Corporation – the third largest less-than-truckload (LTL) carrier in the United States – announced to its union Sunday that it will be filing for bankruptcy. Facing USD 1.3 billion in upcoming debt maturity, the nearly-century old company suspended operations the same day.
The Yellow Corporation consists of the national LTL carrier YRC Freight, as well as regional carriers New Penn, Holland, and Reddaway. Though the formal bankruptcy announcement is still pending, the work stoppage has forced many shippers to scramble for alternative service providers.
Compass’ trucking desk has been closely monitoring the situation at Yellow over the past several weeks to ensure our customers are minimally affected by these developments. We are working closely with reputable national and regional truckers to ensure coverage for our customers’ freight. With LTL demand set to rise as US peak shipping season begins this month, we forecast that LTL market rates will see an uptick given the elimination of Yellow’s capacity from the market.
Customers should be aware of these market challenges when planning out their supply chains and logistics budgets over the next several months. Our trucking specialists will continue to monitor these changes in the trucking market and will post updates to our newsfeeds as necessary.
Please feel free to contact a member of our customer service team if you have any questions about LTL trucking services.