As of 6 AM this morning, Yellow Trucking Company ceased all outbound operations and is filing for bankruptcy.
Yellow, one of the largest freight carriers in the United States, laid off 30,000 workers in the largest trucking bankruptcy in history. The company, formerly known as YRC Worldwide, is the third largest less-than-truckload carrier by revenue, behind FedEx and Old Dominion.
The shutdown comes just days after a strike was averted at the company. Yellow missed a $50 million benefits payment into an employee pension fund, causing the Teamsters union to threaten a walkout. The threat of a walkout, which could potentially disrupt operations, prompted a wave of Yellow customers to leave. Yellow lost 80% of its freight volumes, causing the already financially troubled company to permanently close its doors.
We want to assure our customers that we have been aware of Yellow’s situation for some time and have taken preemptive steps to mitigate the disruption to our customers as much as possible. While Yellow handles a large number of the nation’s outbound shipments, they only process around 10% of Vanguard Safety’s total outbound deliveries. We have been working tirelessly for the past few weeks to reroute shipments to other carriers to circumvent any delays.
As of this morning, an extremely small number of our customer orders are impacted by the shutdown. Any order that is impacted has been rush reshipped to its destination on a different carrier.
As we have existing contracts with all other major freight carriers already in place, our shipments with other carriers will also not be impacted.
If you have any questions regarding your order, please feel free to contact us at 866-848-2736 or email us at Info@VanguardSafety.com.