A unionized less-than-truckload (LTL) carrier operating in a high-cost, super-congested region occupies by weather problems for one-third to 40 percent of the year. Tough competition, mostly from non-union carriers, which got much tougher with the entry into the region two years ago of the ninth-largest LTL carrier. Shippers and third-party logistics providers (3PLs), businesses that work on behalf of shippers, squeezing it for every last nickel.
It's a problematic recipe that is becoming all-too-familiar. The brutal Northeast market has claimed many in LTL carrier since trucking was deregulated in 1
The news shocked everyone, including those who knew that NEMF was having problems and was aware that 83, its Chairman, Myron P. Shevell, was eyeing a way out of the business. NEMF executives had recently talked about investing in power units and trailers, and last month it announced a 5.4 percent increase that took effect on February 4. Now the company is about to disappear in what will be the largest U.S. trucking shutdown since Consolidated Freightways, Inc. closed its doors in the fall of 2002.
The closure – no timetable has yet been announced – will affect more than 1,300 drivers, among other NEMF employees. It will also be able to play 40 terminals in the Northeast, Midwest and Puerto Rico. The company 's facilities, many in areas with soaring real estate values, are owned by the Shevell family and can fetch a princely sum, especially in areas where there is carrier overlap, according to one source. Elizabeth, New Jersey-based NEMF controls about 10,000 pieces of equipment, including about 1,500 power units, according to information on the company's website.