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June 29, 2023

YELLOW may never be ONE

Picture of Hank Newman, CEO/Founder

Hank Newman, CEO/Founder

We know that Yellow has been rumored to go under for a few decades, but it could be real now.

The rapid deterioration in the relations between Yellow and the Teamsters significantly elevates the risk of using Yellow. An excellent article detailing the turbulent Yellow history and news on the lawsuit Yellow has filed against the Teamsters is well worth a read.

We know that Yellow has been rumored to go under for a few decades, but it could be real now. The quickly mounting evidence does not tell a good story, so it may be an excellent time to find LTL solutions outside Yellow.

The impact on the LTL industry overall would be significant. Yellow represents approximately 10% of the LTL market, and removing that capacity, even in the current freight recession, will have a considerable impact. Dynamic pricing, blanket rates, etc., could be severely restricted — even temporarily suspended. Rates will move up due to simple supply/demand principles.

The time to consider alternatives is now. Don’t hesitate to contact Reconex for an analysis of how this may impact your company.

Here are a couple of relevant articles:

Yellow is a zombie company — it’s time to let it go

Yellow running out of options, sues union for $137M

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