Less-than-truckload carrier Yellow Corp. saw tonnage plummet again in the course of the first two months of the second quarter. In a news release issued after the market closed Friday, the carrier provided the dour update.
Yellow’s (NASDAQ: YELL) tonnage declined 16% 12 months over 12 months (y/y) in each April and May. In comparison with two years ago, tonnage was off 33% in each months.
Assuming the present y/y growth rates hold through the second quarter, Yellow’s tonnage could be flat with the primary quarter, the seasonally weakest period of the 12 months. Yellow normally sees a 6% sequential increase in tonnage from the primary to the second quarter every year.
Updates from other carriers imply sequential growth within the second quarter. If current trends hold at each carrier, ArcBest (NASDAQ: ARCB) would see a 7% increase, Saia (NASDAQ: SAIA) a 9% jump and XPO (NYSE: XPO) a 3% step up.
Yellow’s declines have been largely tied to the volatility around its restructuring, dubbed One Yellow, during which it’s consolidating all of its LTL brands and shutting duplicate terminals. Nonetheless, the most recent phase of operational changes has been rejected by its union workforce.
The 2 parties had agreed to barter all matters concurrently, including their collective-bargaining agreement that doesn’t expire until March 2024. But Yellow’s recent demands have each groups mired in a heated back-and-forth with no resolution in sight — a lot so, that it appears the carrier’s share loss isn’t just tied to the overhaul but now likely includes some customers walking away to avoid hiccups that would arise if labor actions ensue.
Yellow’s revenue per hundredweight, or yield, was down 1.5% y/y in April, followed by a 3.8% decline in May. Yellow did have tough comps on that metric, up roughly 30% within the prior-year periods.
The corporate didn’t provide any commentary in its update.
Shares of YELL were off 3.1% in after-hours trading Friday after increasing 2.6% within the day’s regular trading session.
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