FreightWaves’ Post

Trucker US Logistics Solutions Shuts Down Amid Bankruptcy https://lnkd.in/gu6feDcT Trucker US Logistics Solutions has ceased its operations after filing for bankruptcy, citing insurmountable financial challenges. This decision has impacted the company's employees, clients, and the broader logistics industry. #truckingindustry #logistics #bankruptcy American CEO Magazine

The past few years have been extremely challenging for the transportation and logistics industry. Major companies like Yellow/YRC closed, leaving 30,000+ people jobless, Convoy has shut down operations, and Transplus has filed for bankruptcy. The list of hardships continues. According to CarrierOK, nearly 88,000 trucking companies and 8,000 freight brokerages ceased operations last year. While this year didn't start on a positive note, the industry is showing signs of improvement. The sector is in a state of constant change and evolution. #Hermanntds has demonstrated remarkable adaptability, which has helped us move in the right direction. However, just when things seem to be getting better, another significant setback arises. Recently, Texas-based U.S. Logistics Solutions filed for bankruptcy liquidation, impacting over 2,000 employees. Ten Oaks Group, the investor, disputes this number, claiming there were only 864 direct employees, 305 contractors and temporary workers, and 57 owner-operators. Regardless of the exact figures, it is a deeply unfortunate situation. I am saddened for everyone affected. With a large network and open positions at our Houston location, I would be happy to assist those impacted. If anyone from #USLogisticsSolutions needs assistance, please feel free to connect. #HermannTSD #transportation #Logistics #opentowork #Texas #Houston #Hermannservices https://lnkd.in/gBiezyqG

The past few years have been extremely challenging for the transportation and logistics industry. Major companies like Yellow/YRC closed, leaving 30,000+ people jobless, Convoy has shut down operations, and Transplus has filed for bankruptcy. The list of hardships continues. According to CarrierOK, nearly 88,000 trucking companies and 8,000 freight brokerages ceased operations last year. While this year didn't start on a positive note, the industry is showing signs of improvement. The sector is in a state of constant change and evolution. hashtag #Hermanntds has demonstrated remarkable adaptability, which has helped us move in the right direction. However, just when things seem to be getting better, another significant setback arises. Recently, Texas-based U.S. Logistics Solutions filed for bankruptcy liquidation, impacting over 2,000 employees. Ten Oaks Group, the investor, disputes this number, claiming there were only 864 direct employees, 305 contractors and temporary workers, and 57 owner-operators. Regardless of the exact figures, it is a deeply unfortunate situation. I am saddened for everyone affected. With a large network and open positions at our Houston location, I would be happy to assist those impacted. If anyone from #USLogisticsSolutions needs assistance, please feel free to connect. #HermannTSD #transportation #Logistics #opentowork #Texas #Houston #Hermannservices https://lnkd.in/gBiezyqG

Although Canadian Carriers are also being impacted significantly by the current Freight Recession taking place in the USA, Mexican carriers are seeing a rare boom as nearshoring grows due to the Supply Chain struggles driven by the pandemic and other economic benefits. It seems like things will be sorted out when carrier capacity per load comes back to “normal” - so stay tuned!

LTL trucking company Yellow formally filed their Chapter 11 petition for bankruptcy this week after closing their doors to new business last week. While Chapter 11 is typically associated with a reorganization, Yellow has made it clear that they will liquidate their assets to pay their creditors. Due to the sudden tightening of capacity, there are reports that the LTL carriers have issued lots and lots of rate increases in the wake of Yellow’s closure. What can companies who utilize LTL carriers do in response? We suggest considering the following steps: First, benchmark your LTL rates – Identify how your rates stack up in the current market and see if there are opportunities to reduce your current LTL rates or change your processes to lower your freight costs. Second, consider whether it makes sense to join our Freedom Logistics LTL sourcing network – If you're a mid-sized company, we can help you understand your options in the market, provide a more effective LTL contract and improve your rates with our LTL buying network. Third, learn about LTL management tools and decide which ones make sense for your company. It’s more important than ever to track your data well and improve your visibility. Let us know how we can help. https://hubs.la/Q01-DqDR0 #logistics #supplychain #supplychainmanagement #LTL

Yellow Corp., the No. 6 carrier on CCJ's Top 250 ranking of for-hire carriers, is facing bankruptcy after a tumultuous 15 years. The pending closure will affect nearly 30,000 employees, making it one of the largest bankruptcies in U.S. history in terms of headcount. Yellow is currently in talks to sell its third-party logistics business. The bankruptcy could significantly impact the freight and used truck markets. Yellow's approximately 14,000 trucks, including sought-after sleepers, are likely to hit the market, potentially accelerating depreciation in the used truck market, especially for daycabs. The bankruptcy could also lead to reallocation of freight to other LTL carriers, with potential rate adjustments. However, with excess capacity in the LTL sector, the impact on the overall economy is expected to be limited. Shippers may aggregate LTLs into full truckloads, potentially causing a lift in volume in the spot market. Nonetheless, the freight redistribution process poses challenges in logistics and requires careful planning. .* *The opinions expressed are my own and not necessarily those of the company #YellowBankruptcy #LTLBankruptcy #TruckDepreciation #TruckMarketTrends #LogisticsChallenges #SupplyChainDisruptions https://lnkd.in/gtGCsPud

Last week's bankruptcy of Yellow Corp, one of the largest trucking companies in the U.S. serves as a reminder to suppliers of the still-fragile state of the supply chain, industry experts said. RapidRatings identified Yellow as risky since early 2021! Don’t get caught off guard - use predictive analytics like our FHR to get an early warning on your public and private company suppliers so you can mitigate the risk before it happens!!! #riskmanagement #procurement #supplychain https://lnkd.in/efZvxJUv

This is so sad to see. There are obviously strategy decisions to analyze but the 800lb gorilla in the room is the fact that Carriers need to take more control of rate and relationships with their customers. There has been far too much encroachment on margin, pricing and relationships by entities that do not haul freight and it has lead us to where we are now. Undisciplined shipper/carrier relationships have enabled this! Relationship discipline AND Competitive procurement practices CAN coexist! Something needs to change in the relationship between carriers and shippers!

Very interesting, seems like a lot of interests are around the problems of YRC, we should be aware that costs on the LTL industry will increase as a result of the actual unbalance in the capacity vs demand, probably XPO, Old Dominion and others will gain volume but capacity will be tight so we should be close to our customers and prospects as opportunities may arise in the near future. All of us in the North American Logistics market are facing new conditions and we should be able to provide advantages to our customers and prospects if we want to be considered as someone who is really interested on bringing value to them 🖐🏼 Sources: https://lnkd.in/gQe6Up6N https://lnkd.in/gyyuXcmX