iD Additives warns of supply chain issues

Aug. 30, 2023
The company is reaching out to customers to set expectations after the bankruptcy filing of Yellow has snarled shipments.
I D Additives Logo

By Karen Hanna

The sudden closure in July of Yellow Corp., along with associated brands, including YRC and Holland, has caused delays for at least one company in the plastics industry.

An Aug. 18 email indicated that iD Additives is asking customers for a 10-day business lead time on all orders from the La Grange, Ill., supplier of chemical foaming agents, purging compounds, mold cleaners, preventative maintenance cleaning systems and other products for the plastics industry.

“As we are sure you have heard, YELLOW Freight (YRC, USF Holland) is going out of business. They were the 3rd largest carrier in the freight industry. This will have a huge impact on shipping LTL and full truckload freight. We want to keep our customers updated,” the email states.

Yellow employed 22,000 people before bankruptcy finally spelled its demise, according to a legal notice provided to the Teamsters Union on July 31. But the long-troubled company was not a major shipper of iD Additives’ products, said Heather Vitullo, logistics coordinator for iD Additives. However, its elimination from the market creates cascading effects.

“iD Additives has been affected by shipments that have been picked up from our warehouse — and then they sit at the LTL terminal before shipping to [customers],” Vitullo said. “To correct for that, I have started shipping our LTL shipments two days earlier than I normally would for posted transit times. Similar but not nearly as bad as during Covid, when [suppliers] and customers actually shut down — causing the market to come to a standstill. There are still plenty of carriers — they are just bogged down a bit with all the freight.”

Along with lead times, shipping costs have trended up, Vitullo said.

To mitigate issues, Vitullo said she has been meeting with representatives of LTL carriers to discuss discounts, and she stays abreast of the fastest available transit times. As of Aug. 22, iD Additives was confirming orders based on when the ship date would be, rather than the delivery date.

Vitullo said, “Our customers are dealing with the same challenges, and we’ve asked them to try [their] best to put [orders] in earlier, expecting the lead times to be longer.” 

Karen Hanna, senior staff reporter 

[email protected] 

About the Author

Karen Hanna | Senior Staff Reporter

Senior Staff Reporter Karen Hanna covers injection molding, molds and tooling, processors, workforce and other topics, and writes features including In Other Words and Problem Solved for Plastics Machinery & Manufacturing, Plastics Recycling and The Journal of Blow Molding. She has more than 15 years of experience in daily and magazine journalism.