1. Resurgence in LTL Segment: Former Yellow terminals reopening signals a revival in the less-than-truckload (LTL) market, prompting major carriers to position themselves for an anticipated upswing.
  2. Strategic Expansion by Major Carriers: XPO, Saia Inc., and Roadrunner Freight lead the charge, acquiring Yellow terminals and unveiling plans to enhance nationwide capacity, service excellence, and operational efficiency, reflecting a broader industry trend towards growth and strategic investment.
A pallet being pulled off a truck into a reopened yellow terminal

Following the closure of Yellow Corp.’s terminals last year, the reopening of former Yellow terminals has gained momentum. This indicates a resurgence in the less-than-truckload (LTL) segment. Several major carriers have recently introduced additional doors they acquired at auction. As a result, they are positioning themselves for the anticipated upswing in the LTL market.

XPO was the top bidder in the first auction of Yellow terminals. They announced the opening of three terminals acquired from Yellow. These terminals are located in Goodlettsville, Tennessee; Grand Junction, Colorado; and Nogales, Arizona. They mark the first sites to begin operations among the 28 acquired by XPO. With a deeper presence in strategic markets, XPO aims to enhance its nationwide capacity, service excellence, and operating efficiency.

Saia Inc., another significant winner in the Yellow terminal auction, revealed plans to open two terminals under its Saia LTL Freight unit. These terminals, located in Missoula, Montana, and Garland, Texas, represent Saia’s commitment to expanding its network and improving operational flexibility.

Additionally, Roadrunner Freight reopened a former Yellow terminal in Atlanta. This signals the company’s readiness to capitalize on the anticipated growth in the LTL segment.

What does this mean for the LTL market?

Industry observers anticipate a resurgence in LTL tonnage, following a period of weakness exacerbated by Yellow’s closure. With the right-sizing of demand among remaining carriers, major LTL players are gearing up for future growth by expanding their footprint and investing in acquisitions beyond former Yellow assets.

As carriers continue to reopen and expand operations at ex-Yellow terminals, the LTL segment is poised for a period of revitalization, driven by increasing demand and strategic investments across the industry.