A named "FreightWorks Transport LLC" North American logistics enterprises, in the operation of 11 years later, on Tuesday officially informed its more than 200 employees, the company closed down!
For the company to close the reasons, FreightWorks Transport LLC gives the answer is two points:
1, the market downturn, customers significantly lower prices
2, the loss of major customers
According to the Federal Motor Transport Safety Administration (Federal Motor Carrier Safety Administration), FreightWorks Transport LLC's business is FreightWorks Transportation & Logistics, headquartered in Rutherforton (Rutherfordton), operating 186 power units, about 140 drivers.
FreightWorks Operations Vice President Joyce Siqueira said in a video to employees and drivers, "For the sake of our employees, customers and other stakeholders, the most glorious way we can take is to close the company in an orderly manner."
Siqueira said that after some core contract customers suddenly asked for significant price cuts ((in the amount of millions of dollars)), the company could not see the way forward.
It is reported that on February 28, FreightWorks one of the largest contract customers withdrew, "which withdrew a considerable proportion of the company's freight", this incident also sounded the FreightWorks's death knell.
Siqueira said in the video: "This has had an immediate and very devastating impact on our payroll, not to mention paying rent, truck costs and other expenses."
"Several other events on the same day exacerbated these already overwhelming challenges. In a very weak freight market, we simply could not make up for lost freight with enough profitable work to allow us to continue to grow."
FreightWorks survived the previous freight recession because it was largely insulated from contract customers. Siqueira assured employees and drivers that the price cuts requested by customers were "entirely due to market pressures" and had nothing to do with the trucking company's execution and performance.
a FreightWorks former employee also shared company memos to employees and drivers-dated "March 10"-but it appears the trucking company was forced to stop operations earlier than expected.
Siqueira said that with immediate effect, FreightWorks will no longer receive goods.
She said: "This is very important to us. We want to ensure that our customers' millions of dollars of goods (most of which are perishable goods) are not destroyed during our closure."
It is understood that the company will coordinate with drivers how to return the equipment-either to a designated parking lot or temporarily in their homes.
"We will ensure that everyone has a way to get home safely," Siqueira said. "We are committed to ensuring that every driver can get paid for the final delivery."
In addition, FreightWorks are seeking help from drivers. Once the carrier receives the signed bill of lading, the company will pay those who assist in transporting the goods a $500 bonus.
Siqueira said: "We run a truck company not just to transport goods, we run a freight company to take care of people."
About FreightWorks
FreightWorks was founded in 2012 and is headquartered in Rutherforton (Rutherfordton), operating 186 power units and about 140 drivers.
FreightWorks is an asset-based trucking company formerly known as FuelWorks, a small family-owned biodiesel plant located in the Appalachian foothills of North Carolina.
When factory production outpaced sales, then-FreightWorks President and CEO Josh Farmer bid on a 1 million-mile Volvo 670 and the first used truck to start a new company.
Source: one shipping