Loss of Yellow Trucking Means Upcoming Price Hikes

by Mindy Cohn

Yellow, the nearly 100-year-old responsible for ten to fifteen percent small-batch trucking capacity in the U.S., filed for Chapter 11 bankruptcy protection on Monday.

The trucking company halted operations on July 30, leaving 30,000 workers unemployed.

The company was known for combining smaller shipments into single truckloads to keep prices down. Now that the trucking company is no more, competitors are not rushing to fill the vacuum and have stated on no uncertain terms that they do not intend to match Yellow's low-cost shipping prices.

Yellow's officials blame unions for their failure, which Teamsters officials deny. But no matter where the blame lies, the buck stops with consumers who face higher pricing in the months ahead, as the loss of a major carrier is likely to result in higher pricing overall.