US Supply Chain Disruption: Yellow Trucking

Yellow Trucking Company, a known company that has been in the industry for 99 years, filed for bankruptcy last 30th July. As their fleet of over 12,000 trucks and 30,000 workers have been moving around 50,000 shipments per day, there will be a large discrepancies that the other players need to fill.

Here are a few possible events that may occur in the next few months:

1. Disrupted Shipping Network

Due to the loss of a significant number of transport fleet, expect delays on shipment and delivery. Proactive and transparent communication on order readiness between suppliers and forwarders is encouraged and buyers should order ahead giving buffer space anticipating inland delays.

2. Supply Shortages

The delay in transporting goods could lead to delays in restocking shelves and fulfilling orders.

3. Potential Price Increase

Shipment delays causing supply shortages will increase demand and can contribute to higher transportation costs, and can carry over to consumer prices for goods

As there will also be capacity shortages, demand will increase as well as cost for transport services

Carriers Affected:

1. YRC Worldwide

2. New Penn

3. Holland

4. Reddaway

Shipments booked with Yellow or any of its subsidiaries need to be rebooked with another carrier. 

As this has a significant impact on the LTL infrastructure, McHugh and Eastwood are actively coordinating with partners within the industry to ensure that we assist clients manage and navigate through these changes as smoothly as possible.

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