When Freight Carriers Fold, CDL Holders Keep on Trucking
A Texas-based warehousing and truck transportation outfit abruptly shuttered its operations, sending upwards of 2,000 employees, including 500 truckers, packing. Based in Humble, TX, U.S. Logistics Solutions is garnering splashy headlines that suggest the truck transportation sector is in trouble.
Adding fuel to that fire, another report shows that May was a rocky month in terms of freight transportation company closures. These are a handful of the top trucking organizations that reportedly closed in May 2024.
- Arnold Transportation Services: The 92-year-old Grand Prairie, Texas, trucking outfit filed for Chapter 7 bankruptcy.
- Tony’s Express: The 70-year-old California enterprise also ceased operations in May 2024, leaving 200 employees out of work.
- Flagship Transport: The Miami-Dade operation closed under a cloud where employees reportedly claim they are owed wages.
But is the truck transportation industry still a lucrative proposition for people interested in earning high salaries without burdening themselves with student loans? And does it still possess the employment stability that attracted so many people to acquire their CDL? The first part of a statement by U.S. Logistics Solutions executive Eric Culberson would indicate otherwise.
“Due to the abrupt decision by our private ownership group to close our doors at the same time business was surging, I am completely devastated and heartbroken for the 2000+professionals I’ve had the pleasure of working with,” U.S. Logistics Solutions executive Eric Culberson stated. “The timing of this closure did not give me the chance to thank my team for their commitment and support to our customers and to each other.”
At least one trucking industry report noted that 88,000 carriers closed their doors in 2023. But even with LTL giant Yellow filing for bankruptcy and a slew of small and mid-sized operations closing their doors, non-seasonally adjusted trucking jobs modesty increased from April to May. Seasonally adjusted data shows that trucking jobs only slipped back by -5.4, while warehousing and other freight movement sectors grew by 10.6 percent. It’s as if the select closure information and conflicting employment data are asking industry insiders to simultaneously hold two conflicting ideas in their minds.
Perhaps Culberson hinted at the truth of the trucking jobs matter in the second portion of his social media farewell post.
“If there are any employers out there looking for some outstanding talent within the industry, please consider my former teammates at US Logistics Solutions… We all deserved better, and I’m confident that everyone will be blessed with another opportunity to showcase the Excellence we strived for every day,” he reportedly stated.
The truck driver shortage reportedly stands at 60,000.
Sources:
https://www.bls.gov/news.release/pdf/empsit.pdf
https://www.chron.com/news/article/texas-truck-drivers-laid-off-19532026.php
https://www.cotasystems.com/blog/the-largest-trucking-company-bankruptcies
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