A unionized worker with a load less than the truck load (LTL) that operates in a high cost and super congested region harassed by climatic problems for a third to 40% of the year. Difficult competition, mostly from non-unionized companies, which became more complicated with the entry into the region two years ago of the ninth largest LTL company. Shippers and third-party logistics providers (3PL), companies that work on behalf of shippers, squeeze every last nickel.
It is a problematic recipe that has become too familiar. The brutal northeastern market has claimed many LTL carriers since the transport was deregulated in 1980. Late on February 11, it toppled one of the big: New England Motor Freight, Inc. (NEMF). In business since 1977, but a company whose roots go back more than a century, NEMF announced that it and 10 related entities had applied for Chapter 11 bankruptcy protection, and that it would begin an "orderly liquidation" of the business.
The news surprised everyone, including those who knew that NEMF was having problems and were aware that, at age 83, its president, Myron P. Shevell, was looking for a way out of the business. NEMF executives spoke recently about investment in power units and trailers, and last month announced a general rate increase of 5.4 percent that went into effect on February 4. Now, the company is about to disappear in what will be the largest truck closure in the US. UU From Consolidated Freightways, Inc. closed its doors in the fall of 2002.
The closure, the schedule has not yet been announced, will affect more than 1,300 drivers, among other NEMF employees. It will also be the one who brings into play 40 terminals in the Northeast, Midwest and Puerto Rico. The company's facilities, many of them in areas with rising real estate values, are owned by the Shevell family and could obtain a sum of princes, especially in areas where there is an overlap of operators, according to one source. NEMF, headquartered in Elizabeth, New Jersey, controls about 10,000 equipment, including approximately 1,500 units of power, according to information on the company's website.