In a strange turn of events, a big shipping company has stopped doing business. It’s important to note that this closure happened without any official bankruptcy filing.
Since 2022, there has been a slowdown in the freight trucking industry, which has made it hard for many shipping companies to stay in business.
Which major U.S. company has decided to shut down?
A lot of them have filed for bankruptcy, but some have just shut down without making a formal petition. A well-known U.S. Postal Service contractor who hauls mail is the latest victim of this ongoing problem.
As shipping companies deal with falling demand, rising prices, and rising interest rates, the number of them filing for bankruptcy keeps growing. Businesses that deal with freight and shipping are all having a hard time because of these economic problems.
The big shipping company Pride Group is one of the most well-known companies that will be hit. This huge company in its field ran a huge fleet of about 20,000 tractor-trailers.
More details about this U.S. company
These cars belonged to the company, were leased to them, were repaired, or were securitized. Pride Group also took care of 50 owned and leased sites in the U.S. and Canada.
Pride Group had to make the hard choice to shut down all of its businesses in August, leaving a big hole in the market. Even though they have stopped providing their services, they have not yet filed for bankruptcy.
- The freight trucking industry has been in recession since 2022.
- Many shipping companies are filing for bankruptcy, while others are shutting down without filing.
- Pride Group, a major player with a fleet of 20,000 tractor-trailers, has ceased operations but has not filed for bankruptcy.
Stay tuned as we continue to track what’s happening in the freight trucking business and share information about how companies like Pride Group are handling these rough times.
Pride Group had an impressive collection of 1,459 trucks and trailers as of early 2024. The debtor owned 1,383 of these assets directly.
But on March 27, 2024, the company was in terrible financial shape and went to the Ontario Superior Court of Justice in Canada to ask for help under the Companies’ Creditors Arrangement Act (CCAA).
This move was meant to either make it easier to sell Pride Group as a running concern or shut down the business. The company said that its money problems were caused by the long-lasting effects of the COVID-19 outbreak.
Pride Group’s Strategic Moves
The company from Mississauga, Ontario, took another step to protect its assets on April 1, 2024, when it filed for Chapter 15 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. This was done to try to get a foreign case recognized so that the company could keep its U.S. assets safe from creditors.
DRF Logistics’ Financial Decline
At the same time, DRF Logistics, a global e-commerce shipping business based in Austin, Texas, was having the same money problems. It was filed for Chapter 11 bankruptcy in the Southern District of Texas on August 8, 2024.
The company had been losing money every year since it was bought by Pitney Bowes in 2017. This led to the decision to shut down and sell the business.
- Both Pride Group and DRF Logistics have sought bankruptcy protection to manage their financial difficulties.
- The Covid-19 pandemic significantly contributed to Pride Group’s financial crisis.
- Pride Group’s filing under the CCAA and Chapter 15 aims to protect assets and potentially facilitate a sale or wind-down.
- DRF Logistics’ Chapter 11 filing is a step towards liquidating its business after consistent annual losses.
These cases show how difficult it can be for businesses to handle financial problems and the different legal options that are out there to help them.
In the last few months, a number of large companies in the shipping and logistics business have shut down and filed for bankruptcy. This trend has made people worry about the future of the business and how it will affect both customers and workers.
Freight Forwarder Boateng Logistics Closes Doors
A well-known freight forwarder called Boateng Logistics filed for Chapter 7 bankruptcy on February 22. The company aims to sell off its assets. Because of this choice, the company stopped doing business completely. Another big loss for the business is the closing of Boateng Logistics.
Arnold Transportation Services: A 92-Year Legacy Ends
Arnold Transportation Services was a trucking business that had been around for 92 years. On April 25, it fired all of its employees and shut down. The company filed for Chapter 7 liquidation five days later, on April 30. This was the sad end of its long history in the transportation industry.
U.S. Logistics Solutions Faces Liquidation
Ten Oaks Group owns U.S. Logistics Solutions. On June 21, the company filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas in Houston.
As another example of how tough things are in the logistics business, the company shut down, fired its workers, and planned to sell off its assets.
Yet Another Major Shipping Company Ceases Operations
Another big player in the shipping business has also stopped doing business, but it hasn’t filed for bankruptcy yet. People in the business world are very interested in what this company’s future holds.
Midwest Transport Also Stopped
Midwest Transport, which was based in Robinson, Illinois, has also stopped doing business. Another shipping and logistics company has gone out of business, adding to the growing number of those having money problems.
As these events progress, it becomes more crucial for people involved in the shipping and logistics business to stay up to date and ready for the possible effects that these closures may have on other areas.
In a strange turn of events, Midwest Transport, a trucking and logistics company that had a deal with the U.S. Postal Service to haul mail, has suddenly stopped doing business. Sources with knowledge of the situation have confirmed this to FreightWaves.
Unexpected Shutdown
Regional bosses at Midwest Transport are said to have told workers by phone on the evening of September 5 that the company would be shutting down.
Even though it had about 650 employees and hired more than 480 drivers, the company has not yet made a public statement about why it is closing so quickly. No signs have been found that Midwest Transport has filed for bankruptcy as of September 6.
A Brief History of Midwest Transport
Established in 1980, Midwest Transport has operated key terminals in several locations, including:
- Greenup, Illinois
- Harmony, Pennsylvania
- Jacksonville, Florida
- Memphis, Tennessee
- Tampa, Florida
The company is well known because it is one of the biggest transportation providers for the U.S. Postal Service. Midwest Transport has won the prestigious Eagle Spirit Award, which is the greatest honor the Postal Service gives to mail transportation contractors.
The sudden closing of such a well-known business raises a lot of questions and makes it hard to know what will happen to the workers and their contracts with the U.S. Postal Service.