Subscribe now. The COVID pandemic forced more than 3, trucking companies out of business in — a significant leap from about 1, the year prior — as the early months of the global health crisis proved too difficult for some in the industry to withstand. A total of 3, trucking companies ceased operations last year, according to a report from transportation industry data firm Broughton Capital, up from 1, in And of those that closed last year, slightly more than half — or 1, companies — shuttered during the months of April, May and June, when freight volumes plunged amid the widespread economic disruption that pushed businesses to close and put millions of people on unemployment.
In May alone, trucking companies closed their doors. But that also faded, and when demand faded, so did spot rates. That plummet in spot rates was so low, no one could operate and turn a profit. Broughton noted that larger trucking operations and more well-capitalized firms were able to weather the economic fallout from the pandemic better than smaller trucking companies, which felt more pressure, especially during the second quarter.
Spot rates for vans dropped 23 cents per mile in March, reefer rates fell 25 cents and flatbed rates were down 26 cents a mile — the lowest since January The company cited increased fuel and insurance costs, a shifting economy, and a tighter market as the reason for its downfall, Fleet Owner reported. Jevic went private two years prior to its collapse, reported Refrigerated Transporter. Nearly 1, trucks were left with canceled fuel cards around the country in the midst of the bankruptcy, according to Transport Topics.
The company also turned off phones, deactivated its website, and shut down headquarters, Trucking Info reported. Transportation Alliance Bank claimed fraud and racketeering by Arrow in a suit that alleged false invoices were submitted. New England Motor Freight — once known as a "major player" — announced it was shutting down and filing for bankruptcy on February 12 of The company owed millions of dollars to multiple creditors, The Wall Street Journal reported.
NationsWay, another large regional carrier, shut its doors after filing for bankruptcy in The company had 2, rigs at the time of its collapse, according to JOC. Preston Truck Lines shut its doors in to its 1, drivers. Vise claimed Preston was once a "sizeable" regional trucking company based in Maryland. PTL reportedly ran out of money to pay bills, the Washington Post reported. The trucking giant declared bankruptcy on December 8, leaving 2, drivers unemployed. About 1, non-driving administrative employees also lost their jobs, all before the holiday season.
On December 5, the SEC charged two former Celadon executives with accounting fraud alleging they repeatedly inflated the trucking company's income and earnings. In May , Transcon Lines agreed to an involuntary bankruptcy petition , which was also when the Los Angeles Times reported that the company laid off most of its 3, truck drivers. At the time, Transcon was considered the "12th largest motor carrier in the United States," although its demise came in part because of partial deregulation of the industry in by congress that caused an increase in competition, according to the court filings.
Vise claims the Consolidated Freightways bankruptcies was possibly the largest ever. The company shut down September while it had over 7, trucks in its fleet. At the time of its demise, CF was the nation's third-biggest less-than-truckload carrier, which is when multiple shippers share a portion of the same truck, according to Freight Quote.
About 4, US truck drivers notified on Monday Celadon was ceasing operations, leaving them jobless and without benefits. Andrea Smith has a daughter who turns eight on 20 December, five days before Christmas. Smith is one of about 4, truck drivers across the US who were notified on Monday that their employer was ceasing operations after filing for chapter 11 bankruptcy protection.
The filing makes it the largest bankruptcy in trucking history. Many of the truck drivers were left stranded in the midst of making deliveries, as they await receiving bus tickets from the company to return home, now jobless and left without benefits two weeks before Christmas. Their fuel cards were shut off , and many were reported left without any directions on where or how to turn in their rigs.
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