Thursday, January 21, 2010

More Woes As Freight Transport Truck Firms Crash

Economic Situation Continues Haulage Firms Misery but Some Fight Back
Shipping News Feature

UNITED KINGDOM – US – CANADA – Tales of difficulties for haulage companies are continuing this month as the fiscal problems for the logistics sector continue. Earlier this month European Commercial Freight was wound up after a creditors meeting. With a debt deficiency of over £480,000 the Hull based truck company went into liquidation on the 5th January. Meanwhile Harris Logistics, based in Milton Keynes, who ran five freight vehicles, folded this week after their own liquidation on 6th January. Debts were around £140,000.

Overseas we hear of the sad demise of Bailey Truck Line of Abilene, Texas. A family run company with 17 trucks, Bailey have been present in the town since 1945 and Nesha Bailey-Mason, Mayor of Abilene, blamed reduced revenues for whatever little work there currently is available for the firms demise. Nesha’s grandfather started the company after the Second World War and her father, who ran the company before Ms Bailey – Mason, told of how hard it was to inform the 21 staff that their jobs were to go. "Some guys were here 15 years or more," he said. "It was the hardest thing to do."

Meanwhile in Canada two well known freight truck delivery companies have agreed to merge part of their operations to control costs. Despite the dry van and refrigerated operations of Rexton-based Warren Transport and the flat bed facilities of D.D. Transport, of Newfoundland and Nova Scotia, being merged together with the two companies’ repair facilities, the groups deny there will be any loss of jobs.

The new company will be called Atlantica Diversified Transportation Systems and will maintain several offices in the three provinces where its parents’ companies are based. Both firms are known throughout the country with senior management figures holding authority with such organisations as the Canadian Trucking Alliance and the Atlantic Provinces Trucking Association. The parent firms have traditionally concentrated on different spheres, D.D. are more locally oriented whilst Warren have traditionally plied a longer furrow into North America. Combining the two groups’ strengths would appear to be a sensible move in these austere times.