---
title: "Navigating the Aftermath of Yellow’s Closure: A Guide for Shippers"
description: Following Yellow's closure and bankruptcy, the shipping industry faces challenges with stranded shipments and supply chain uncertainties.
image: https://blog.customodal.com/hubfs/yellows-closure-guide-for-shippers.webp
---

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# Navigating the Aftermath of Yellow’s Closure: A Guide for Shippers

TAGS:

- [Blog](https://blog.customodal.com/tag/blog)
- [3pl](https://blog.customodal.com/tag/3pl)
- [Logistics](https://blog.customodal.com/tag/logistics)
- [Freight Brokerage](https://blog.customodal.com/tag/freight-brokerage)
- [Inbound Freight](https://blog.customodal.com/tag/inbound-freight)
- [Digital Freight Management](https://blog.customodal.com/tag/digital-freight-management)
- [Shipping](https://blog.customodal.com/tag/shipping)
- [supply chain](https://blog.customodal.com/tag/supply-chain)
- [Freight Costs](https://blog.customodal.com/tag/freight-costs)
- [Outbound Freight](https://blog.customodal.com/tag/outbound-freight)
- [Specialized Freight Management](https://blog.customodal.com/tag/specialized-freight-management)
- [Technology](https://blog.customodal.com/tag/technology)
- [Freight Forwarding](https://blog.customodal.com/tag/freight-forwarding)
- [TMS](https://blog.customodal.com/tag/tms)
- [LTL](https://blog.customodal.com/tag/ltl)
- [freight](https://blog.customodal.com/tag/freight)
- [Featured](https://blog.customodal.com/tag/featured)
- [Freight Savings](https://blog.customodal.com/tag/freight-savings)
- [Logistics Planning](https://blog.customodal.com/tag/logistics-planning)
- [Controlling Costs](https://blog.customodal.com/tag/controlling-costs)
- [Digital Freight Brokering](https://blog.customodal.com/tag/digital-freight-brokering)
- [supply chain challenges](https://blog.customodal.com/tag/supply-chain-challenges)
- [avoid extra fees](https://blog.customodal.com/tag/avoid-extra-fees)
- [Inbound-Outbound Freight](https://blog.customodal.com/tag/inbound-outbound-freight)
- [Strategic Logistics](https://blog.customodal.com/tag/strategic-logistics)
- [manufacturing](https://blog.customodal.com/tag/manufacturing)
- [outbound](https://blog.customodal.com/tag/outbound)
- [Critical Infrastructure](https://blog.customodal.com/tag/critical-infrastructure)
- [FLEX Outbound Freight](https://blog.customodal.com/tag/flex-outbound-freight)
- [Tracking](https://blog.customodal.com/tag/tracking)
- [import](https://blog.customodal.com/tag/import)
- [sustainability](https://blog.customodal.com/tag/sustainability)
- [visibility](https://blog.customodal.com/tag/visibility)
- [API](https://blog.customodal.com/tag/api)
- [Compliance](https://blog.customodal.com/tag/compliance)
- [EXACT Inbound](https://blog.customodal.com/tag/exact-inbound)
- [EXACT Inbound Freight](https://blog.customodal.com/tag/exact-inbound-freight)
- [Freight Cost Tracking](https://blog.customodal.com/tag/freight-cost-tracking)
- [Outbound Freight Savings](https://blog.customodal.com/tag/outbound-freight-savings)
- [Precision ROI](https://blog.customodal.com/tag/precision-roi)
- [Project-based Logistics](https://blog.customodal.com/tag/project-based-logistics)
- [Vendor Performance](https://blog.customodal.com/tag/vendor-performance)
- [documentation](https://blog.customodal.com/tag/documentation)
- [export](https://blog.customodal.com/tag/export)
- [freight claim](https://blog.customodal.com/tag/freight-claim)
- [freight management](https://blog.customodal.com/tag/freight-management)
- [inbound freight costs](https://blog.customodal.com/tag/inbound-freight-costs)
- [incoterms](https://blog.customodal.com/tag/incoterms)
- [meet the team](https://blog.customodal.com/tag/meet-the-team)
- [ocean freight](https://blog.customodal.com/tag/ocean-freight)
- [parcel](https://blog.customodal.com/tag/parcel)
- [save money](https://blog.customodal.com/tag/save-money)
- [supplychain](https://blog.customodal.com/tag/supplychain)
- [Carrier Selection](https://blog.customodal.com/tag/carrier-selection)
- [Critical Freight](https://blog.customodal.com/tag/critical-freight)
- [Data Driven](https://blog.customodal.com/tag/data-driven)
- [Freight Claims](https://blog.customodal.com/tag/freight-claims)
- [Risk Mitigation](https://blog.customodal.com/tag/risk-mitigation)
- [Turnaround Logistics](https://blog.customodal.com/tag/turnaround-logistics)
- [Uptime](https://blog.customodal.com/tag/uptime)
- [current events](https://blog.customodal.com/tag/current-events)
- [inbound](https://blog.customodal.com/tag/inbound)
- [priority1](https://blog.customodal.com/tag/priority1)
- [recession](https://blog.customodal.com/tag/recession)
- [shipping delay](https://blog.customodal.com/tag/shipping-delay)
- [4pl](https://blog.customodal.com/tag/4pl)
- [Analytics](https://blog.customodal.com/tag/analytics)
- [Customs](https://blog.customodal.com/tag/customs)
- [Dock Management](https://blog.customodal.com/tag/dock-management)
- [Downtime](https://blog.customodal.com/tag/downtime)
- [FLEX Freight Control](https://blog.customodal.com/tag/flex-freight-control)
- [Heavy Haul](https://blog.customodal.com/tag/heavy-haul)
- [International](https://blog.customodal.com/tag/international)
- [SDK](https://blog.customodal.com/tag/sdk)
- [Strategic Outsourcing](https://blog.customodal.com/tag/strategic-outsourcing)
- [book review](https://blog.customodal.com/tag/book-review)
- [canada](https://blog.customodal.com/tag/canada)
- [covid 19](https://blog.customodal.com/tag/covid-19)
- [customodal way](https://blog.customodal.com/tag/customodal-way)
- [delivery](https://blog.customodal.com/tag/delivery)
- [digital freight broking](https://blog.customodal.com/tag/digital-freight-broking)
- [exports](https://blog.customodal.com/tag/exports)
- [freight broker](https://blog.customodal.com/tag/freight-broker)
- [ftl](https://blog.customodal.com/tag/ftl)
- [holidays](https://blog.customodal.com/tag/holidays)
- [in the news](https://blog.customodal.com/tag/in-the-news)
- [logisitics](https://blog.customodal.com/tag/logisitics)
- [mike eberl](https://blog.customodal.com/tag/mike-eberl)
- [news](https://blog.customodal.com/tag/news)
- [oceanfreight](https://blog.customodal.com/tag/oceanfreight)
- [packaging](https://blog.customodal.com/tag/packaging)
- [rates](https://blog.customodal.com/tag/rates)
- [save on freight](https://blog.customodal.com/tag/save-on-freight)
- [save on shipping](https://blog.customodal.com/tag/save-on-shipping)
- [shipping news](https://blog.customodal.com/tag/shipping-news)
- [shipping solutions](https://blog.customodal.com/tag/shipping-solutions)
- [small parcel audit](https://blog.customodal.com/tag/small-parcel-audit)
- [small parcel refunds](https://blog.customodal.com/tag/small-parcel-refunds)
- [truckload](https://blog.customodal.com/tag/truckload)
- [update](https://blog.customodal.com/tag/update)
- [2022](https://blog.customodal.com/tag/2022)
- [2022 shipping expectations](https://blog.customodal.com/tag/2022-shipping-expectations)
- [Alaska](https://blog.customodal.com/tag/alaska)
- [Carbon Accounting](https://blog.customodal.com/tag/carbon-accounting)
- [Cold Chain](https://blog.customodal.com/tag/cold-chain)
- [Customs Broker](https://blog.customodal.com/tag/customs-broker)
- [EXACT](https://blog.customodal.com/tag/exact)
- [Electrical Utilities](https://blog.customodal.com/tag/electrical-utilities)
- [Freight Control](https://blog.customodal.com/tag/freight-control)
- [Green Logistics](https://blog.customodal.com/tag/green-logistics)
- [Hawaii](https://blog.customodal.com/tag/hawaii)
- [Hazmat](https://blog.customodal.com/tag/hazmat)
- [In-House Fleet vs Virtual Fleet](https://blog.customodal.com/tag/in-house-fleet-vs-virtual-fleet)
- [Inbound Shipping Skills](https://blog.customodal.com/tag/inbound-shipping-skills)
- [Inventory Management](https://blog.customodal.com/tag/inventory-management)
- [JIT](https://blog.customodal.com/tag/jit)
- [Jones Act](https://blog.customodal.com/tag/jones-act)
- [LCL](https://blog.customodal.com/tag/lcl)
- [Maintenance Logistics](https://blog.customodal.com/tag/maintenance-logistics)
- [Midwest](https://blog.customodal.com/tag/midwest)
- [Oversized](https://blog.customodal.com/tag/oversized)
- [Puerto Rico](https://blog.customodal.com/tag/puerto-rico)
- [Reverse Logistics](https://blog.customodal.com/tag/reverse-logistics)
- [air freight](https://blog.customodal.com/tag/air-freight)
- [all risk shippers protection](https://blog.customodal.com/tag/all-risk-shippers-protection)
- [asset based](https://blog.customodal.com/tag/asset-based)
- [automated audits](https://blog.customodal.com/tag/automated-audits)
- [automated refunds](https://blog.customodal.com/tag/automated-refunds)
- [benjamin lorr](https://blog.customodal.com/tag/benjamin-lorr)
- [broker](https://blog.customodal.com/tag/broker)
- [bullwhip](https://blog.customodal.com/tag/bullwhip)
- [carmack](https://blog.customodal.com/tag/carmack)
- [central wisconsin manufacturing](https://blog.customodal.com/tag/central-wisconsin-manufacturing)
- [cheap logistics](https://blog.customodal.com/tag/cheap-logistics)
- [china](https://blog.customodal.com/tag/china)
- [choose local](https://blog.customodal.com/tag/choose-local)
- [cip](https://blog.customodal.com/tag/cip)
- [coronavirus](https://blog.customodal.com/tag/coronavirus)
- [covid19](https://blog.customodal.com/tag/covid19)
- [cpt](https://blog.customodal.com/tag/cpt)
- [ctb](https://blog.customodal.com/tag/ctb)
- [cybersecurity](https://blog.customodal.com/tag/cybersecurity)
- [dan hendrickson](https://blog.customodal.com/tag/dan-hendrickson)
- [dap](https://blog.customodal.com/tag/dap)
- [dayton freight](https://blog.customodal.com/tag/dayton-freight)
- [ddu](https://blog.customodal.com/tag/ddu)
- [diy shipping](https://blog.customodal.com/tag/diy-shipping)
- [double brokering](https://blog.customodal.com/tag/double-brokering)
- [e-commerce](https://blog.customodal.com/tag/e-commerce)
- [ebol](https://blog.customodal.com/tag/ebol)
- [exporting](https://blog.customodal.com/tag/exporting)
- [factoring](https://blog.customodal.com/tag/factoring)
- [freight damage](https://blog.customodal.com/tag/freight-damage)
- [freight jobs](https://blog.customodal.com/tag/freight-jobs)
- [freightforwarding](https://blog.customodal.com/tag/freightforwarding)
- [from the forest](https://blog.customodal.com/tag/from-the-forest)
- [fuel surcharge](https://blog.customodal.com/tag/fuel-surcharge)
- [fulltruckload](https://blog.customodal.com/tag/fulltruckload)
- [glossary](https://blog.customodal.com/tag/glossary)
- [holiday shipping](https://blog.customodal.com/tag/holiday-shipping)
- [how to switch ltl](https://blog.customodal.com/tag/how-to-switch-ltl)
- [importing](https://blog.customodal.com/tag/importing)
- [inboundfreight](https://blog.customodal.com/tag/inboundfreight)
- [industry 4.0](https://blog.customodal.com/tag/industry-4-0)
- [insurance](https://blog.customodal.com/tag/insurance)
- [insurance claim](https://blog.customodal.com/tag/insurance-claim)
- [last mile](https://blog.customodal.com/tag/last-mile)
- [location](https://blog.customodal.com/tag/location)
- [logistics coordinator](https://blog.customodal.com/tag/logistics-coordinator)
- [low cost shipping](https://blog.customodal.com/tag/low-cost-shipping)
- [maritimeshipping](https://blog.customodal.com/tag/maritimeshipping)
- [michael standley](https://blog.customodal.com/tag/michael-standley)
- [mycarrier](https://blog.customodal.com/tag/mycarrier)
- [newsletter](https://blog.customodal.com/tag/newsletter)
- [non-performance refunds](https://blog.customodal.com/tag/non-performance-refunds)
- [ocean shipping](https://blog.customodal.com/tag/ocean-shipping)
- [onboarding](https://blog.customodal.com/tag/onboarding)
- [our values](https://blog.customodal.com/tag/our-values)
- [outboundfreight](https://blog.customodal.com/tag/outboundfreight)
- [outsource](https://blog.customodal.com/tag/outsource)
- [overview](https://blog.customodal.com/tag/overview)
- [pallet](https://blog.customodal.com/tag/pallet)
- [pandemic](https://blog.customodal.com/tag/pandemic)
- [parcel audit](https://blog.customodal.com/tag/parcel-audit)
- [parcel refunds](https://blog.customodal.com/tag/parcel-refunds)
- [parcel shipping](https://blog.customodal.com/tag/parcel-shipping)
- [partnership](https://blog.customodal.com/tag/partnership)
- [permits](https://blog.customodal.com/tag/permits)
- [predications](https://blog.customodal.com/tag/predications)
- [purchasing management](https://blog.customodal.com/tag/purchasing-management)
- [questions](https://blog.customodal.com/tag/questions)
- [reshoring](https://blog.customodal.com/tag/reshoring)
- [risk management](https://blog.customodal.com/tag/risk-management)
- [rose george](https://blog.customodal.com/tag/rose-george)
- [routing guide](https://blog.customodal.com/tag/routing-guide)
- [save time](https://blog.customodal.com/tag/save-time)
- [sea freight](https://blog.customodal.com/tag/sea-freight)
- [seafreight](https://blog.customodal.com/tag/seafreight)
- [shipment](https://blog.customodal.com/tag/shipment)
- [shipping 101](https://blog.customodal.com/tag/shipping-101)
- [shipping clerk](https://blog.customodal.com/tag/shipping-clerk)
- [shipping costs](https://blog.customodal.com/tag/shipping-costs)
- [skid](https://blog.customodal.com/tag/skid)
- [staff](https://blog.customodal.com/tag/staff)
- [standley](https://blog.customodal.com/tag/standley)
- [supply chain resilience](https://blog.customodal.com/tag/supply-chain-resilience)
- [team](https://blog.customodal.com/tag/team)
- [testimonial](https://blog.customodal.com/tag/testimonial)
- [trade show shipping](https://blog.customodal.com/tag/trade-show-shipping)
- [transportation](https://blog.customodal.com/tag/transportation)
- [transportation management](https://blog.customodal.com/tag/transportation-management)
- [truck broker](https://blog.customodal.com/tag/truck-broker)
- [truckload specialist](https://blog.customodal.com/tag/truckload-specialist)
- [ups shipping](https://blog.customodal.com/tag/ups-shipping)
- [yellow](https://blog.customodal.com/tag/yellow)

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[Mike Eberl](https://blog.customodal.com/author/mike-eberl) August 11, 2023

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![Navigating the Aftermath of Yellow’s Closure: A Guide for Shippers](https://blog.customodal.com/hubfs/yellows-closure-guide-for-shippers.webp)

In the wake of [Yellow’s closure and subsequent bankruptcy](https://apnews.com/article/yellow-corp-trucking-company-shuts-down-f041c94fde4c8766e1feed2294ef7acc), the shipping industry finds itself facing a unique and challenging situation. With shipments stranded across the nation and uncertainty looming over the market, shippers are left wondering how to best manage their supply chain needs.

As we delve into the aftermath of Yellow’s demise, we’ll explore the scope of its operations, the circumstances of its shutdown, the union sympathy it garnered, and most importantly, what steps shippers can take to navigate through these turbulent times.

1. **The Scale of Operations and Stranded Shipments:** Yellow, once a major player in the [LTL (Less Than Truckload) market](https://customodal.com/2020/10/20/ltl-shipping-the-basics/), encompassed a network of providers including YRC, USF Holland, USF Reddaway, and New Penn. Representing nearly 9% of the LTL market, Yellow’s closure left more than 300 terminals scattered across the country with stranded shipments. With the company’s abrupt cessation of operations and a skeleton staff managing the chaos, shippers are grappling with the challenge of retrieving their goods from these locked terminals.
2. **The Unfolding of Yellow’s Shutdown:** Yellow’s struggle to integrate regional operations into a nationwide network due to conflicts with the Teamsters union had been ongoing for years. The contentious negotiations and inflammatory rhetoric between the company and the union eroded confidence among shippers. The sequence of events leading to the shutdown was swift—non-union employees were terminated, union employees were instructed to contact their representatives, and the company filed for bankruptcy, outlining a plan for an “orderly” liquidation.
3. **Union Sympathy and Widespread Impact:** While union solidarity is not uncommon, the extent of non-union LTL operations refusing to participate in rescue operations from Yellow’s terminals is noteworthy. This has left many shippers with stranded freight resorting to hiring alternate carriers to wait at Yellow terminals, incurring additional costs. Detention charges, accumulating as freight awaits processing, threaten to overshadow the original LTL freight expenses.
4. **Navigating the Post-Yellow Landscape:** As the shipping industry adjusts to this new reality, several key considerations emerge: 
     - ***Outstanding Invoices and Claims:* **Invoices owed to Yellow for services rendered must still be settled, with the bankruptcy court aiming to allocate funds to creditors. However, the estimated liabilities surpass assets by a substantial margin, putting unsecured creditors at risk of receiving little to nothing. Shippers should evaluate their exposure and decide whether to write off outstanding claims or file as unsecured creditors.
     - ***Short-Term Market Impact:*** Anticipate a short-term market disruption as the industry absorbs the sudden demand shift. Despite excess carrier capacity minimizing immediate disruptions, potential rate fluctuations may occur in response to the supply-demand balance.
     - ***Strategic Redistribution:*** Collaborate with your logistics provider to strategically redistribute the freight that previously relied on Yellow’s services. A successful transition requires understanding carrier networks, capacities, and regional considerations. Prioritize maintaining consistent service during this upheaval rather than seeking immediate cost savings.

The aftermath of Yellow’s closure presents significant challenges for shippers, but it’s not without opportunities for strategic adaptation. By understanding the scope of operations, the circumstances of the shutdown, and the potential implications, shippers can navigate these turbulent times with greater clarity.

To successfully traverse this uncertain landscape, [collaboration with logistics providers](https://customodal.com/our-mission/), prudent financial decisions, and a focus on maintaining service quality will be paramount. If you find yourself in need of guidance during these challenging times, consider seeking support from experienced industry experts to ensure your supply chain remains resilient and efficient.

Customodal is here to help!

 

[news](https://blog.customodal.com/tag/news) [current events](https://blog.customodal.com/tag/current-events) [yellow](https://blog.customodal.com/tag/yellow) [LTL](https://blog.customodal.com/tag/ltl)

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