XPO | Breaking News: 400-truck Ltl Carrier Suddenly Shuts Down

Eric Zeemen

TB Lurker
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Another LTL carrier shutsdown


This is the fifth major closure in 2019. The others were NEMF, Falcon, Williams Trucking of Dothan, Alabama, and Indiana-based A.L.A.
 
It’s a sobering reminder that the rug can be pulled out from under us at anytime. A couple of their drivers, in my area, used to work for us and I bumped into them regularly..it’s B.S. how it went down.

They handled a BIG chunk of John Deere in my area and so far it looks like we are gonna absorb it...which will be interesting since we are tight on staff and equipment.
 
We're starting to see a market correction in the industry fueled by increasing wages and slowing demand. The weaker organizations are falling off. The plus side for the rest of us is that we will be absorbing this freight. The downside is that this with chip a away at the supposed driver shortage.
I have no crystal ball so there's no telling what the coming months will bring for the industry.
 
We're starting to see a market correction in the industry fueled by increasing wages and slowing demand. The weaker organizations are falling off. The plus side for the rest of us is that we will be absorbing this freight. The downside is that this with chip a away at the supposed driver shortage.
I have no crystal ball so there's no telling what the coming months will bring for the industry.

This isn't a "market correction", it's a company behaving in a way that was either explicitly illegal or close enough that the distinction is nearly immaterial. They pulled the plug rather than pay court ordered restitution and fines. Let's not pretend this is market dynamics.
 
What a company broke the law ?


About 95 Lakeville Motor Express truckers and dockworkers were abruptly locked out of their Roseville job site without notice or pay just before Thanksgiving 2016. While Lakeville Motor Express filed for bankruptcy, affected workers claimed the entity actually continued to operate, just at a different location in the Twin Cities and under the new name LME Inc.

Numerous articles related to the Lakeville Motor Express bankruptcy suggest that the owners bankrupted the union carrier, resurfacing as a non-union carrier under LME and Finish Line Express brands. The NLRB ordered the $1.25 million in backpay to be paid starting within 60 days from April 30, 2019, or the amount would double to $2.4 million. It is not known if the backpay or fines were the cause of the sudden closure.
 
About 95 Lakeville Motor Express truckers and dockworkers were abruptly locked out of their Roseville job site without notice or pay just before Thanksgiving 2016. While Lakeville Motor Express filed for bankruptcy, affected workers claimed the entity actually continued to operate, just at a different location in the Twin Cities and under the new name LME Inc.

Numerous articles related to the Lakeville Motor Express bankruptcy suggest that the owners bankrupted the union carrier, resurfacing as a non-union carrier under LME and Finish Line Express brands. The NLRB ordered the $1.25 million in backpay to be paid starting within 60 days from April 30, 2019, or the amount would double to $2.4 million. It is not known if the backpay or fines were the cause of the sudden closure.
It took CF 15 yrs to circumvent the law .
 
DOUBLEBREASTING BABY!

"Don't worry about the Conway drivers, they're going after that 2-300 mile next day freight. There's no money in that. You guys are handling the 700+ mile freight that pays. Conway is no competition for you guys"

I heard these words from a CF terminal manager as a BA stood next to him nodding in agreement. Still makes my head hurt.
 
DOUBLEBREASTING BABY!

"Don't worry about the Conway drivers, they're going after that 2-300 mile next day freight. There's no money in that. You guys are handling the 700+ mile freight that pays. Conway is no competition for you guys"

I heard these words from a CF terminal manager as a BA stood next to him nodding in agreement. Still makes my head hurt.
It was a long but well executed plan. Our benefits and retirement plan went south after they put down the union sister company . That speaks for itself. They only kept us well compensated until they felt the threat of unionization was gone. From their they pulled the plug. Paying for our healthcare, halting the pension, loss of sick days, loss of bereavement days, earn as you go pto, loss of safety bonuses, loss of earnings bonus, stricter disapline with more ways to be terminated . Ect.

But we get hot dogs!
 
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It was a long but well executed plan. Our benefits and retirement plan went south after they put down the union sister company . That speaks for itself. They only kept us well compensated until they felt the threat of unionization was gone. From their they pulled the plug. Paying for our healthcare, halting the pension, loss of sick days, loss of bereavement days, earn as you go pto, loss of safety bonuses, loss of earnings bonus, stricter disapline with more ways to be terminated . Ect.

But we get hot dogs!

We lost our hot dogs.
 
It was a long but well executed plan. Our benefits and retirement plan went south after they put down the union sister company . That speaks for itself. They only kept us well compensated until they felt the threat of unionization was gone. From their they pulled the plug. Paying for our healthcare, halting the pension, loss of sick days, loss of bereavement days, earn as you go pto, loss of safety bonuses, loss of earnings bonus, stricter disapline with more ways to be terminated . Ect.

But we get hot dogs!
Well said!! That sums it up!
 
This isn't a "market correction", it's a company behaving in a way that was either explicitly illegal or close enough that the distinction is nearly immaterial. They pulled the plug rather than pay court ordered restitution and fines. Let's not pretend this is market dynamics.
I believe that the freight slowdown nudged them over the edge though. They likely would have milked it out longer had things been going better for the industry.
 
I believe that the freight slowdown nudged them over the edge though. They likely would have milked it out longer had things been going better for the industry.
Very accurate. They had a lot of accounts with deep discounts, so not much profit margin.
 
It was a long but well executed plan. Our benefits and retirement plan went south after they put down the union sister company . That speaks for itself. They only kept us well compensated until they felt the threat of unionization was gone. From their they pulled the plug. Paying for our healthcare, halting the pension, loss of sick days, loss of bereavement days, earn as you go pto, loss of safety bonuses, loss of earnings bonus, stricter disapline with more ways to be terminated . Ect.

But we get hot dogs!
Why is this not in the union thread?
 
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