Yellow Ceases Operations

Yellow Corporation, the parent company of LTL Carriers YRC Freight, New Penn Motor, Holland, Reddaway, and more, has ceased operations at 12 PM on Sunday, according to a notice on the gates at its terminals.

Last week, Yellow Corporation had movements that had the shipping community speculating that operations would cease this week. Now, it appears that it's a reality with an announcement expected Monday morning.

The future of the Yellow Umbrella is uncertain - whether specific units will be sold off to continue operations. However, shippers should expect the bankruptcy to affect all other carriers as the volume is shifted from the Yellow Network to other LTL Carriers.

TLI speculates based off historical LTL carrier bankruptcy's, the freight and assets in Yellows network will be auctioned off to other carriers to complete the deliveries of stuck freight. This process may take time and delays may occur even after a carrier wins the bid as priority typically goes to that carrier's current customer's freight.

Shippers that have freight in Yellows Network may find frustration in attempting to get the freight delivered. Unfortunately, there may not be much that can be done as terminals become unmanned and no workers are there to move the freight.

TLI has been attempting to mitigate this by diverting volume away from Yellow's network for the past six weeks. Rest assure your TLI team will be there to help with any options possible.

Expect freight volumes to rise in other LTL carrier networks that may cause unexpected delays. As more freight is diverted into other networks, other carrier terminals may be overwhelmed just as we saw in 2021 during the unexpected severe weather would shut down terminals.

When New England Motor Freight and New Century, 3PLs were forced to work with other carriers, which typically resulted in increased cost. TLI, however, will not be scrambling to find a new carrier as TLI has been observing the situation.

TLI is dedicated to supporting and help our shippers through this time. The bankruptcy leaves a huge gap in the industry and TLI is ready to tackle the issues that may arise from this bankruptcy. For any further questions, please reach out to your dedicated TLI Rep.

*This is a developing story. Check back here for any additional updates as available.