3PL's arent in for a hurt. The 3PL's revenue comes from either a flat yearly management fee or a fee per load shipped through them.
With more and more customers going elsewhere and yellows cash flow dropping by the day . Even if they came to an agreement on a contract without a Government bill out or loan with no fright to haul and no money to pay the bills just to keep the wheels rolling like fuel . I don’t see how yellow could survive now . In my opinion with how bad the economy is and how hard freight is to come by I think yellow could only survive buy restructuring and getting rid of most of the staff and drivers and become a smaller company with less overhead
And any carrier is bound to take their rate? Ok, got it.
The 3PL's don't make the rates, the carriers do in an RFP. Any pricing a 3PL has with a carrier comes directly from the carrier themselves.
Which is what my point was. Yellow hauled a lot of that at a deep discount, other carriers may not do that. At that point where a 3PLs rates is close to what a carriers published rate is, why would a shipper involve them.
