Tonnage at Yellow Corp. falls off so far through 2Q
It has been a tough quarter so far financially for Yellow Corp.
The less-than-truckload carrier issued a news release late Friday afternoon, June 2, showing tonnage per workday down 16.3% for the first two months of second quarter 2023.
That teases out to a drop of 14.6% in shipments per workday while weight per shipment dropped 2%. That dinged revenue per hundredweight, lowering it 2.7%, and revenue per shipment, down 4.7%.
These figures include fuel surcharges. Excluding fuel surcharges, quarter-do-date LTL revenue per hundredweight increased 4% and quarter-to-date LTL revenue per shipment increased 1.9% compared to a year ago.
| Month | Shipments per workday | Weight per shipment | Tonnage per workday | Revenue her cwt. | Revenue per shipment |
| April | minus 15.4% | minus 1.1% | minus 16.4% | minus 1.5% | minus 2.6% |
| May | minus 13.8% | minus 2.9% | minus 16.3% | minus 3.8% | minus 6.6% |
| Quarter to date | minus 14.6% | minus 2% | minus 16.3% | minus 2.7% | minus 4.7 |
The company is delivering this financial data while it is negotiating with the International Brotherhood of Teamsters union over details of its One Yellow restructuring.
Yellow Corp. reorganization
The Overland Park, Kan.-based company is trying to execute Phase 2 of its One Yellow reorganization strategy. Phase 1 included about 20% of the company’s network and addressed operations in the western United States. It was implemented in September. The second phase addresses about 70% of the company’s network. Phase 2 consists of legacy operations YRC Freight, Holland and New Penn terminals in the Midwest, Northeast and Southeast.
Earlier last week, Yellow Corp. complained about the Teamsters “stonewalling” the contract negotiations associated with the restructuring.
Among the sticking points in negotiations are Yellow Corp. wanting to change about one-fifth of its over-the-road drivers to utility positions that would work freight on the docks.
Another issue is the amount of purchased transportation allowed to plug schedule holes.
Also last week, the Teamsters announced reaching a tentative agreement on a five-year collective bargaining agreement with ABF Freight System, a subsidiary of ArcBest Corp, a national less-than-truckload freight carrier based in Fort Smith, Ark.
Yahoo Finance said if the current year-to-year growth rates hold through the end of the second quarter, then Yellow Corp. tonnage would be flat from first to second quarter. Other carriers are seeing increases from the first quarter, which is traditionally the weakest, to the second quarter.
Old Dominion Freight Line, based in Thomasville, N.C., recently reported a decrease of 11.4% in LTL shipments per day. Old Dominion Freight Line is a nonunion LTL carrier. LL
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