Small Shippers and the Impact of the Yellow Freight Collapse

If you follow Global Toy News, you know that Yellow Freight, America’s number three LTL shipper, has gone bankrupt. We have been following its demise out of concern for the toy industry’s smaller and mid-sized companies who depend on LTL freight carriers.

Here is how The Journal of Commerce puts it in its article by William B. Cassidy, “Yellow collapse seen hitting smaller, mid-sized LTL shippers hardest“:

Large shippers may have shifted freight away from failed trucking company Yellow weeks ago, but smaller manufacturers and distributors are scrambling to find less-than-truckload (LTL) capacity now that the $5.2 billion LTL provider has closed its doors, logistics executives tell the Journal of Commerce

Yellow collapse seen hitting smaller, mid-sized LTL shippers hardest, william b. cassidy,, The Journal of Commerce, August 2, 2023

The article cautions that most companies using LTL carriers work under a blanket agreement. In other words, one contract that covers all shipments. Unfortunately, the freight carrier can raise rates as frequently as it wants under such arrangements.

And there is a bigger problem – finding a freight carrier. Acccoring to the Journal of Commerce article, some shippers are turning new customers away, emphasizing serving their existing accounts and not taking on new customers.

If you are a small or mid-sized company using Yellow Freight, you need to be contacting LTL freight carriers now. Here is a list of some alternative LTL shippers

Old Dominion Freight Line

XPO Logistics

Estes Express Lines

ABF Freight System

SAIA Inc.

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