Posted by: rbmcarriers | May 21, 2008

High Fuel Costs to Blame

Everyone has the high cost of fuel on their minds if they drive any kind of vehicle.  And it appears that the acceleration of cost is not slowing down, much to the dismay of all.  Especially the transportation industry.  Today’s Trucking reported yesterday that a huge US LTL carrier have closed their doors and site the high fuel costs as the major factor.  The full story is copied below.

Happily, we can report that our trucks are busy and we have no intention of letting the high cost of fuel to cause any disruption of the transportation service we provide.  As a reminder, you can check the location of our trucks on the map to your right which is updated each morning.  If we can assist your shipping needs, contact us with your details.

US LTL giant closes shop

DELANCO, N.J. — The message fronting Jevic Transportation‘s website from President David Gorman pretty much sums it up:

“I regret to inform you that Jevic Transportation Inc. will be discontinuing operations. The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary. Jevic will stop providing pickup service effective Monday May 19, 2008.”

The 27-year-old company, ranked one of the largest LTL carriers in North America and in the top 100 total for-hire fleets, said it will continue to deliver all freight within its system prior to closing.

Jevic was bought by Yellow Corp. in 1999 for $200 million. At the time the company was attractive for its innovative approach to LTL trucking.

The company was launched after U.S. deregulation in 1981 by owner-operator Harry Muhlschlegel, who is said to have reinvented the LTL model by combining elements of the truckload and less-than-truckload models in a regional company.


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