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Road drivers suffer in 2019 – especially those who own or work in small businesses.
Spot market prices in which retailers and manufacturers purchase the trucking capacity they need rather than by contract, it has decreased about 18% from one year to the next in June. This caused the truckers to Demetrius Wilburn, a driver based in Georgia, will be unemployed.
Wilburn bought his semitruck four years ago, after working as a truck driver for years. But in the middle of extremely low rates, Wilburn was not able to make a payment a month – and his truck was taken over.
"I only had six months to pay," Wilburn told Business Insider. "I'm trying to get back into the forces of order now – I never want to drive trucks anymore. It's really not worth it."
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Chad Boblett, owner-operator based in Lexington, Ky., Told Business Insider that some truck drivers were witnessing a "bloodbath" at how low the rates had become.
Here are the trucking companies that went bankrupt in 2019 and the number of truckers who are now unemployed. We used the Federal Motor Carrier Safety Administration's enterprise snapshot tool to measure the number of truck drivers working in each company.
Are you a truck driver who suffered in 2019 from low rates? Contact the reporter at the following address: [email protected].
Starlite Trucking – 28 truck drivers
David McNew / Getty Images
Starlite Trucking, active for 40 years, announced on July 12 the closing of the company. The company was based in Ceres, California, about 100 km southeast of San Francisco, and was carrying mainly cattle feed, nuts and other products for the agricultural region.
CEO Colby Bell said in a statement on Facebook that compliance costs related to California regulation had ruined the company, particularly because of stagnant rates.
Read more: "I do not know how long I can stay in business": truckers' fears have reached recession highs
"We tried to provide a healthy work environment for our employees and to offer them the best salaries and benefits, but the rates available did not support the cost structure needed to properly compensate our employees," said Bell.
ALA Trucking – 32 truck drivers
David Goldman / AP
Effective June 26, ALA Trucking Inc., a trucking company based in Anderson, Indiana, closed after 31 years in business. With 15 other employees, 41 ALA truckers lost their jobs.
Williams Trucking – 48 truck drivers
Scott Olson / Getty Images
On May 1, Williams Trucking, based in Alabama, shut down abruptly, urging its employees to complete deliveries, return their trucks to headquarters, and return home.
LME – 424 truck drivers
Workday Minnesota / YouTube
On July 12, the LME indicated on its website that it was no longer accepting charges and that it was shut down immediately. The company employed more than 400 truck drivers.
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Based in New Brighton, Minnesota, LME was a partial load (LTL) cartage company in the United States. LTL is a type of trucking where several shippers share a truck space to ship parcels.
Last month, a federal judge ordered LME owners to pay $ 1.25 million to former employees. LME owners ran a trucking company called Lakeville Motor Express that closed abruptly in 2016, leaving nearly 100 workers without pay.
Falcon Transport – 585 truck drivers
WKBN27 / YouTube
More than 550 truck drivers in Youngstown, Ohio Falcon Transport learned at the end of April that his employer was going immediately and efficiently.
CounterPoint Capital Partners, a Los Angeles-based investment firm, boughtHe is 116 years old in 2017.
CounterPoint did not explain why he had stopped Falcon. However, some believe that the closing of the Youngstown plant, which closed in March, has contributed to the closure of Falcon.
"It was like a lightning bolt on a clear day and I was not expecting it," Falcon trucker Ed McCormick told WKBN, the local subsidiary of Youngstown CBS.
New England Motor Freight – 1,472 truck drivers
Timmy Shigley / YouTube
On February 12, New England Motor Freight "knocked out" the rest of the industry by announcing its bankruptcy and closing down its operations.
NEMF generated revenues of $ 402 million in 2017, ranking the 19th smallest load truck (LTL) cartage company in the United States. LTL is a type of trucking where several shippers share a truck space to ship parcels. It employed more than 1,300 truck drivers.
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Thomas Connery, President and Chief Operating Officer of NEMF, told Business Insider that the high cost of labor and other costs associated with the commercial activities of the trucking sector were the main reasons bankruptcy of the company. "Excessive regulation, significant increases in the number of tolls and the high cost of insurance were also contributing factors," Connery said.
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