Over 200 FreightWorks Transport employees, including 140 drivers, are being laid off due to losing a significant customer and contract customers demanding rate reductions. FreightWorks, headquartered in Rutherfordton, operated 186 power units with around 140 drivers. Vice President of Operations, Joyce Siqueira, said the company could not see a path forward due to the significant rate reductions and the death toll when their largest contract customer pulled their freight on Feb. 28.

Joyce Siqueira, VP of operations at FreightWorks Transport, sent an emotional message to over 200 employees and drivers after the trucking company’s sudden closure. The asset-based carrier, founded with one truck in 2012 after production exceeded sales at FuelWorks biodiesel plant (run by FreightWorks President and CEO Josh Farmer in NC), needed help to make payroll and cover rent, truck payments, and other expenses in a weak market. At the time of closure, the company was mainly hauling perishable items.

FreightWorks had survived previous recessions due to its contract customers, but Siqueira assured employees and drivers that market pressures were influencing customer demands rather than FreightWorks’ execution. A memo dated March 10 was sent to employees and drivers, but FreightWorks had to cease operations earlier than expected. Siqueira said FreightWorks would no longer pick up loads and urged that millions of dollars of customer freight on the road be maintained.

No trucks are stranded on the road; the company will coordinate the return of equipment to the designated drop yard or home. Drivers paid for final delivery & receive a $500 bonus for assisting. “[We] didn’t run a trucking company just to move freight,” said Siqueira. “We ran a trucking company to take care of people.”

https://www.freightwaves.com/news/unexpected-economic-headwinds-force-freightworks-transport-to-cease-operations