Yellow Corporation Update

The third-largest Less-than-Truckload (LTL) carrier, Yellow Corporation, has had shippers attention for the past couple months amidst talks of a possible bankruptcy. Yellow Corporation is the parent company of LTL companies YRC Freight, Reddaway, New Penn Motor, and Holland.

Last week, the talks turned to a national strike beginning Monday July 24 after the company stopped paying into the company benefits program with Central States Pension and Health Funds. A short celebration was heard Sunday night after the Teamsters and Yellow Corporation worked through an agreement that allowed a 30 day extension on paying into the benefits program.

An emphasis on the short celebration as the company still has the attention of logistics professionals across the network. Today, FreightWaves revealed two developing stories sharing internal memos at Yellow Corporation: a memo stating drivers/terminals to limit pickups and a sales meeting where an exec shared the plan for declaring bankruptcy on Monday.

A FreightWaves article discussed Yellow Corporation sending internal memos to limit pickups at specific terminals and areas. These internal memos and messages were shared with FreightWaves. One picture of a message to a driver showed "TO ALL DRIVERS WE ARE NOT MAKING ANYPICKUPS CALL DISPATCH WHEN MT".

The other FreightWaves article share a story of a Yellow Corporation Senior Vice President of Sales informing her team on Wednesday morning that the company had plans to file bankruptcy on Monday July 31. However, this is a developing story and the Yellow Corporation Senior Vice President held a second meeting later in the day backtracking on the first meeting.

The company also issued the following statement: "Yellow’s talks with the IBT are ongoing. As previously stated, and in keeping with fiduciary responsibility of the company’s executives, the company continues to prepare for a range of contingencies.” 

These are both developing stories at the time of writing this article. Our team is closely monitoring this situation and will update this blog post as new updates are available.

TLI has and will continue to monitor this situation carefully for our shippers. For the past six weeks, our team of experts have been planning according to updates and news.

For direct questions, please reach out to your TLI Account Rep.