Carlen Transport? Can anyone verify?

Confirmed. On last nights news.

WABI-TV

 

Story on Transport Topics web site home page:



http://ttnews.com/articles/basetemplate.aspx?storyid=23468

 

A more in depth article on the Bangor Daily News.

http://www.bangordailynews.com/detail/133732.html

 

Maine's Largest Flatbed Trucking Company Closing Down12/30/2009 05:37 PM ET Reported By: Anne Mostue The state's largest flatbed trucking company is closing up shop, and will lay off 100 employees. The owner says a stagnant economy is to blame. With fewer goods moving on the market, transportation businesses are without much work. Maine transport industry leaders are hoping that at least one government initiative will help.
Carlen Transport in Hampden was founded 23 years ago and has grown into the largest company of its kind in Maine. Its flatbed trucks haul freight all over the country for The Home Depot, Bath Iron Works and Georgia-Pacific, to name a few.

Founder Lenny Peters told the Bangor Daily News that for the past several months his company has been operating at a loss. He says it costs about $1.50 per mile to operate one of his trucks, and he's been receiving $1.42 per mile.

"There are a lot of businesses in the state of Maine who are in a similar situation as Carlen -- they're waiting for the proverbial straw to break the camel's back," says Brian Parke, vice president of the Maine Motor Transport Association, which has 1,200 members. "Another spike in fuel costs, fuel tax or fee increases, insurance increases, so there's many different things that could cause people to be in the same situation," he says.

Parke says because transport businesses operate on thin profit margins, any downturn in the economy is painful. Many contracts include fixed-price agreements, with little room for negotiation. "In Maine we haul many, many different things. With the Carlen Transport situation, they haul flatbeds and they are tied mostly to the building and construction industry. A lot of the dry vans can carry a multitude of things -- forest products, paper, those types of things."

But there's one light on the horizon for truckers in Maine -- a one-year pilot project exempting Maine's highways from the 80,000 pound federal truck limit. Trucks weighing more than 80,000 pounds will be allowed to travel on the Maine Turnpike north of Augusta.

"With regards to the pilot project that Senator Collins was instrumental in getting the Congress to move, I think it's going to have a big benefit," says Democratic state Sen. Dennis Damon, who chairs the Legislature's Transportation Committee, referring to Maine Sen. Susan Collins. "It's going to help the truckers because it's going to reduce their fuel usage, because they can make a straight haul on the interstate system and they don't have to get off in Augusta and go through the state roads and change gears more times and use up more gas. I think it's going to be helpful there."

Damon says keeping the heavy trucks on the highway is safer and will also prevent wear and tear on smaller roads.

Carlen Transport will end its leases on 112 flatbed trucks, but will keep its property in Hampden, where the company will continue to repair trucks. A small portion of its workforce will continue to work there. Carlen Transport owner Lenny Peters did not return calls for comment.

 

Again folks I hate to sound harsh, but the industry needs more of these companies that are just hanging on to fail. There is a huge overcapicity of trucks on the road compared to the available feight, and until the herd thins more freight rates will never come back up to a reasonable rate. Don't get me wrong I feel for all familes affected and I know that "there for the grace of God go I", but the "experts" say there are 100's of the these ZOMBIE companies out there on the verge of failing and that the 1st quarter of 2010 will see an increase of companies falling by the wayside.

 

You are absolutly right!

But you have to be careful when you say it like it is on these boards because someone will invariably get all upset at you for wanting the drivers for these dying companies to be out of a job.

Our industry is going through a period of readjustment due to the slowing of the economy. Some of the bottom feeder companies will and should fail. Some drivers will have to find other lines of work.

The industry needs this right now unfortunately.

The up side is that hopefully we will see some of the people that have no business being in the industry fall by the wayside. Hopefully some of the truly bad companies will dissappear as well...Arrow was one of them and other than the horrible timing it was good to see them go away.

Other bottom feeders like TMC and Melton are having serious financial problems too and will probably not survive.
In the long run these failures in my opinion will be a positive thing for the industry and will result in a leaner stronger industry and some much needed upward pressure on freight rates.

 

Carlen wasnt a bottom feeder. Carlen was known by many as one of the better companies to drive for. Recent equipment, friendly DM's, Loads you could chose, trucks all came with fridges, microwave, tv, condos, solo drivers, lots of time for delivery, you needed home time it was no problem at all. I myself was looking forward to maybe driving for them some day. Alas Maine trailer is also going to just service these days as well. Easier when customers bring you work instead of pounding the miles.

 

I can't agree . The more these companies fail the more the large carriers will expand their fleets or for now stop reducing them . The more trucks they have the less profit per truck they need and they will keep rates low .
The megacarriers caused the overcapacity . They should continue to reduce their fleets . The inexperienced , poorly trained newbies that won't last 6 months anyway should be the ones losing jobs , not safe drivers with years of experience .

 

Did they cause the over capacity?Maybe,but if they have the contracts to utilize that many trucks why shouldn't they use them?

Either way it is less likely the Mega carriers taking that sub $1.00 pm load than it is an O/O taking a back haul(whatever in the hell those are),or using the CR England mantra of "Yeah we pay crap,but we give you lots of miles!"

Sadly I have met more than one driver(Ellsworth comes to mind) whose answer to it all is "I need more miles".No what they need is to be paid better for the miles they run.

Most companies understand where there bottom line is.They do not go below it.Most O/O do to if slightly higher,but will go below that to get to a better load.As long as someone hauls it cheap rates will never come up.