What's new

Yellow | Layoffs and bankruptcies pile up in logistics amid shocking downturn

Just posted this in "Latest Trucking News" forum, didn't realize you posted here, sorry FM.
 
Oddly the LTL pricing is holding up and good carriers are having their best years ever?
These are FTL 3PL, and asset light providers.
Then there is Yellow....
 
Puff Driver said:
Oddly the LTL pricing is holding up and good carriers are having their best years ever?
These are FTL 3PL, and asset light providers.
Then there is Yellow....
Click to expand...
Several LTL carriers are experiencing declining revenue. Several reported loss of revenue in the 3rd quarter compared to 3rd quarter last year.
C H Robison is largest 3pl company they have 0 drivers, 0 trucks, 0 fuel expenses, and they have 3 times gross revenue per employee as some of the best LTL companies and they reported-27.8% less revenue growth in 3 quarter and -63.7% less earnings growth. So not sure where you’re getting your info but the whole trucking industry is in a recession.
 
CNN (Cedar Rapids,IA)
Coop Dispatch reports record 3rd quarter earnings. Spokesperson, Satish Bloholeovich said shipments of beets, popcorn, recycled light bulbs, and cranberries put y/y earnings 33% above last years period. With the opening of the massive 1,600 door Clarence DC, our freight mix fit well with our tech platform, meeting and exceeding customer expectations, along with financial projections that kept earnings in line with our 5 year plan.
 
dokman said:
Several LTL carriers are experiencing declining revenue. Several reported loss of revenue in the 3rd quarter compared to 3rd quarter last year.
C H Robison is largest 3pl company they have 0 drivers, 0 trucks, 0 fuel expenses, and they have 3 times gross revenue per employee as some of the best LTL companies and they reported-27.8% less revenue growth in 3 quarter and -63.7% less earnings growth. So not sure where you’re getting your info but the whole trucking industry is in a recession.
Click to expand...
Exactly, 3PL's are struggling (zero assets) as well as asset light businesses and Digital Brokers.
For asset carriers Full Truckload/Drayage they are definitely experiencing a recession.
LTL is doing very very well, we are seeing record revenue, yield & profits.
The entire industry is not in a recession, LTL Carriers are doing very well. We will find out soon about parcel carriers.
 
dokman said:
C H Robison is largest 3pl company they have 0 drivers, 0 trucks, 0 fuel expenses, and they have 3 times gross revenue per employee as some of the best LTL companies and they reported-27.8% less revenue growth in 3 quarter and -63.7% less earnings growth.
Click to expand...
I can’t say losing brokers is a bad thing. Not privy to the #s; hate seeing a slice of the pie going out of house. Industry gave up on service earning business. Rather pay bidding houses.
 
BIG R GUY said:
CNN (Cedar Rapids,IA)
Coop Dispatch reports record 3rd quarter earnings. Spokesperson, Satish Bloholeovich said shipments of beets, popcorn, recycled light bulbs, and cranberries put y/y earnings 33% above last years period. With the opening of the massive 1,600 door Clarence DC, our freight mix fit well with our tech platform, meeting and exceeding customer expectations, along with financial projections that kept earnings in line with our 5 year plan.
Click to expand...
Cranberry hauling has been a big plus for the "Coop" this year , think we maybe will have to put on a few more trucks yet this year !!
 
ScotchNeat said:
Do you think LTL would be doing very well if Yellow was still in business taking it's share of the market?
Click to expand...
Pricing in trucking is capacity based, if there are more trucks chasing less freight, rates collapse. if capacity is tight rates increase.
The failure of Yellow created a tightness in the LTL market, no doubt.
Yellow also marketed themselves as a low cost alternative to quality LTL carriers. While existing off of debt rather than profits.
So, the failure of Yellow certainly threw 40,000 LTL shipments per day onto other carriers trucks creating a capacity crunch. Which has tightened pricing and created much better operating margins for good carriers.
Unfortunately, this has had no effect on full truckload which continues to struggle with excess capacity. And will continue to struggle until we have a change in the White House.
 
Puff Driver said:
Pricing in trucking is capacity based, if there are more trucks chasing less freight, rates collapse. if capacity is tight rates increase.
The failure of Yellow created a tightness in the LTL market, no doubt.
Yellow also marketed themselves as a low cost alternative to quality LTL carriers. While existing off of debt rather than profits.
So, the failure of Yellow certainly threw 40,000 LTL shipments per day onto other carriers trucks creating a capacity crunch. Which has tightened pricing and created much better operating margins for good carriers.
Unfortunately, this has had no effect on full truckload which continues to struggle with excess capacity. And will continue to struggle until we have a change in the White House.
Click to expand...
Freight was down prior to Yellow closing. Freight did pickup for the carriers , by no means did it create a shortage of capacity. The freight being moved at the end was so minimal that it was absorbed easily .
 
Puff Driver said:
Pricing in trucking is capacity based, if there are more trucks chasing less freight, rates collapse. if capacity is tight rates increase.
The failure of Yellow created a tightness in the LTL market, no doubt.
Yellow also marketed themselves as a low cost alternative to quality LTL carriers. While existing off of debt rather than profits.
So, the failure of Yellow certainly threw 40,000 LTL shipments per day onto other carriers trucks creating a capacity crunch. Which has tightened pricing and created much better operating margins for good carriers.
Unfortunately, this has had no effect on full truckload which continues to struggle with excess capacity. And will continue to struggle until we have a change in the White House.
Click to expand...
Excess truckload does affect LTL to a point. Some larger shippers will take large shipments and make a truckload stop off at a far cheaper rate than LTL can move the shipments. This doesn't work for the small shipper have they dont have the volume. My better half works with logistics and moved a 2 stop load ( 14 skids total ) from Pa to NC for 40% of the LTL cost, last year wasn't even possible due to the truckload rates. This does effect LTL as lost shipments, again its a small % bit still happens all the time.
 
You must log in or register to reply here.
Top