On-time performance and transit times are leading issues for LTL shippers, which saw overall carrier service deteriorate in , as the COVID pandemic disrupted supply chains and trucking operations. A survey of LTL shippers last September found 70 percent had experienced transit time delays of one to two days, while Reorganizing its terminal network will allow Yellow to create more next-day lanes, filling gaps in regional service, Hawkins said.
The carrier last year created a Central South next-day regional network with nine terminals in five states. The new Mid-Atlantic next-day network covers four states.
Yellow is one of the largest Teamsters employers in the US, and its employees make up a large portion of the Teamsters Freight division. To support expansion, however, Yellow needs to get back in the black. Its last profitable quarter was the first quarter of LTL shipments per workday in the fourth quarter were flat year over year but dropped 1.
Revenue per LTL shipment, excluding surcharges, rose 4. That loan gave the company the runway to reorganize, but Yellow is in a competitive race with increasingly profitable peers. Hawkins believes the optimization of the terminal network and its operations, along with the replacement of its aging fleet of vehicles with new tractors and trailers, is a route back to profitability.
He expects significant savings in vehicle maintenance, higher tractor-trailer fuel economy, and improvements in truck safety that will reduce costs.
A better designed network will create greater lane density and improve productivity per truck, also improving profitability. The reorganization also will help ensure Yellow has the optimal — the most profitable — freight mix in its network, according to Hawkins.
The company was founded and began on October 13, , in a joint venture between Yokohama Cable Manufacturing and B.
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