NASHVILLE, Tenn. (WTVF) — It was the largest trucking company of its kind in America, but this week it came to a halt — trucking company Yellow shut down.
The LTL, or less-than-truckload company, was known for having some of the cheapest prices in the industry. Now thousands of workers are unemployed and shipments have stopped.
"You know, they were the third largest LTL provider in the United States, about 10% market share," said Landon Scott. V, regional manager of business development for V. Alexander.
V. Alexander transports cargo around the world. Scott said they worked with Yellow and other carriers.
"The repercussions of someone of that size, that market share, closing impacts the market tremendously," said Scott.
Yellow's major customers included retailers like Walmart and Home Depot, but the company also served smaller businesses locally, shipping everything from medical supplies to HVAC units.
"I think the bigger issue is on the capacity side," said Scott. "When you remove 10% of capacity from the market, how does that interplay with demand?"
The answer could mean higher shipping rates. "If it costs the company more money to truck freight from one point to the next, they're going to pass that cost along," said Scott.
While Yellow's major retailers may have found other carriers, Scott said it's the smaller companies that could struggle the most.
"So if you're a smaller business and you have smaller volumes, you maybe would have relied on a Yellow to have more economical rates and so I think that the folks that don't have as much volume will really probably be impacted more than anybody."
It's an impact that he says may be felt in the coming months.
