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Shippers start diverting freight from Yellow Corp. due to concerns over its future, according to a TD Cowen report. What potential impacts will this have on industry?
As Yellow Corp. struggles with a contentious overhaul deemed critical for its survival, shippers are starting to divert their freight to other carriers. This move could potentially affect the landscape of the logistics industry and lead to significant shifts in freight distribution. Yellow Corp., which is mired in a battle with the International Brotherhood of Teamsters, maintains its shipment counts despite the ongoing tension. Regardless, the escalating uncertainty is causing shippers to rethink their strategies, which could lead to a difficult path ahead for Yellow Corp. and other logistics professionals.
Source: TransportDive
#Yellow is staring down potential bankruptcy. If they go out of business, expect backlogs at other carriers and rising rates.
— bwslogistics (@bwslogisticsg) July 6, 2023
Our recommendation: Be cautious. If the company declares bankruptcy while in possession of your #freight, it could be months before you get it back. #LTL pic.twitter.com/0KhWYZOnwo
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