News broke last week that the shipping company Yellow is shutting down after 99 years, putting 30,000 workers out of jobs. That could have some major consequences on how goods get to us from across the country.
Here’s Five Fast Facts on the Yellow Shutdown:
- 🚚 Yellow? - Yellow is one of the country’s biggest carriers. They ship small freights that won’t take up a full truck, or Less Than Truckload (LTL) delivery. They were the third largest LTL carrier in the country. Chances are you’ve seen at least one of their trailers on the road.
- 🛻 Who Uses Them? - If you’re a business that needs a delivery but can’t pay for a full trailer, you use an LTL. You only pay for a portion of the freight cost.
- ⛟ What Happened? - Yellow is unionized. The Teamsters Union represents about 22,000 drivers and dock workers. Yellow failed to contribute to its pension and health insurance plans. The Teamsters agreed to hold off on a strike for a month so Yellow can pay up. Yellow said j/k we’re out of business.
- 🚛 Did Anyone Expect This? - Yellow’s been in trouble for some time. They owe the Treasury more than $700m. They’ve also recently settled on charges of defrauding the government for overbilling the military that put them in the hole for another $6.85M.
- 🚒 What Does This Mean? - Since Yellow was the cheaper LTL option, businesses will probably have to start paying more for deliveries and that, in turn, may be moved on to the customer.
🔥Bottom line: Mark the trucking industry down as another institution that’s in trouble. Yellow’s shutdown is another blow to the industry, leaving many truckers with the option of owner-operator driving or quitting altogether.
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