LTL Customer Notice: Yellow Freight Shutdown
Sunset customers,
We have an urgent update for you this Monday morning, which affects many of our LTL and truckload customers.
It has been reported and confirmed that Yellow Corp. has ceased operations as of Sunday, July 30, following several months of turmoil, union unrest, and financial uncertainty. We have begun to see significant disruptions in the LTL industry already, with other carriers working to cover the freight left by the Yellow exit. Yellow was the third largest less-than-truckload (LTL) carrier and was picking up between 40,000 and 50,000 shipments per day.
To preserve service for existing shippers, some carriers have begun embargoing pickups from shippers who have not shipped with them before or shipped irregularly. While we don’t expect daily or near-daily shippers to be affected, we are in constant communication with carriers and our customers to identify and avoid possible disruptions.
The situation is VERY fluid industry-wide, but Sunset expects the following:
Near-medium term:
- Possible pickup embargoes.
- Increased missed pickups.
- Delays in transit.
Medium-long term:
- Service levels will suffer as the market tries to catch up with demand.
- Less favorable dynamic pricing.
- Higher increase requests on renewals.
- Less competitive pricing on new business.
Please contact us with any questions. Sunset is working around the clock to stay ahead of these changing situations; our customers remain our #1 priority. Contact your sales or customer rep, or [email protected] for more information regarding your freight.
Sources:
https://www.freightwaves.com/news/yellow-ceases-operations
https://www.cnn.com/2023/07/31/business/yellow-corp-closing/index.html
https://www.npr.org/2023/07/30/1190960948/yellow-trucking-shutdown-explained