NEMF Files Bankruptcy, Shutting Down

To anyone considering owning a truck, please read this in its entirety. He specifically states costs of equipment and low profit margins as to why the company is facing this harship.

Coincidentally, one of our ranting trolls recently told me this company was so wonderful and solid that i should go there.

New England Motor Freight is the 17th largest LTL company and has several subsidiaries which will also.be shutting down.

TO THE WORKERS OF NEMF:

IT IS WITH A HEAVY HEART THAT I AM WRITING THIS LETTER TO INFORM YOU OF OUR INTENT TO UNDERTAKE A WIND DOWN AND LIQUIDATION OF OUR COMPANY, NEW ENGLAND MOTOR FREIGHT.

THE COSTS OF RUNNING AN ASSET BASED TRUCKING COMPANY HAVE SOARED; WITH LABOR AND BENEFITS CONSUMING AN EVER LARGE PORTION OF REVENUE. ADD IN THE HIGH COST OF EQUIPMENT, A SEVERE INDUSTRY SHORTAGE OF DRIVERS, EVER INCREASING REGULATIONS AND TOLLS, TECHNOLOGY INVESTMENTS AND THE OVERALL RISK ENVIRONMENT OF OUR BUSINESS.

AFTER MUCH DISCUSSION AS WELL AS CONSULTATION WITH OUTSIDE FINANCIAL ADVISORS, IT WAS CONCLUDED THAT IT DOES NOT MAKE SENSE TO CONTINUE OPERATIONS TO SUPPORT A BUSINESS IN WHICH OUR MARGINS CONTINUE TO SHRINK, THEREBY RESULTING IN SIGNIFICANT FINANCIAL LOSSES.

NO ONE IS MORE DEVASTATED THAN OUR CHAIRMAN MYRON “MIKE” SHEVELL AND HIS FAMILY, NAMELY NANCY, SUSAN AND ZACHARY. THEY BUILT THIS COMPANY BY WALKING HAND IN HAND WITH THOUSANDS OF DEDICATED WORKERS LIKE YOURSELF. TO ALL OF OUR CO-WORKERS, MANY OF WHOM ARE DEAR FRIENDS AND TO OUR THOUSANDS OF CUSTOMERS, THE FAMILY EXTENDS SINCERE GRATITUDE AND THEY SHARE IN OUR COLLECTIVE SORROW THAT WE COULD NOT CONTINUE TO OPERATE THIS GREAT ENTERPRISE.

OUR COOPERATE OFFICES AND HUMAN RESOURCES DEPARTMENT WILL PROVIDE FURTHER INFORMATION TODAY AS WE MOVE FORWARD WITH THE WIND DOWN.

GRATEFULLY YOURS,

THOMAS W. CONNERY

PRESIDENT AND CHIEF OPERATING OFFICER

Valid point about NEMF, but it makes me wonder....

What happened to "old prime" that there is a "new prime?" why did Swift merge with Knight? Why did Celedon sell off it's flatbed division, and part ways with Quality?

No company is safe, No one is too big, or small, to fail.

It is unfortunate, other LTL companies where able to increase revenue and profits last 2 or 3 years. For some reason they where one of the few unable to adapt.

Sucks some many people will be unemployed but they can fill any open spots at other LTL companies.

Nemf was union right? Seems union ltl's besides UPS have been struggling. Or maybe I'm dead wrong about that.

Saw this online...

For 2019, we anticipate a cooling trend across the industry. The market heated up early in 2018, with companies pulling in large amounts of inventory in anticipation of impending trade tariffs. Customers realized it would cost less to store extra product until they needed it rather than to order it once the tariffs were imposed. This will lead to a softer market across the board for the first quarter until those warehouses need refilling. In the meantime, many loads will have a shorter length of haul, as much of their journey has already been done.

In response to the shippers market of the last quarter, the industry added more trucks and drivers to try to meet customer’s needs. Now that all those resources are available and the market is softer there is more capacity than needed. This gives customers the bargaining power and rates will slip. As long as the economy continues to grow, we expect things to work toward a more level playing field as the year progresses.

Yes, NEMF was union.

Sorry, just realized I repeated post from earlier😦😦😦😦😦

I tead that last night. $427 million in revenue last year. Adapt or become extinct.