We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » New England Motor Freight files for bankruptcy
newsworthy

New England Motor Freight files for bankruptcy

February 12, 2019
DC Velocity Staff
No Comments

Less-than-truckload (LTL) carrier New England Motor Freight Inc. (NEMF) has filed for bankruptcy, citing persistent rises in overhead costs and a crippling driver shortage, the firm said Monday.

The news comes as the trucking market endures volatile conditions that have surged between historically tight freight capacity over the past year and a gradual easing of conditions in the past six months. The Bloomington, Ind.-based industry consulting firm FTR said in January that its most recent Trucking Conditions Index (TCI) revealed that the market had rebounded slightly into more profitable conditions in November 2018 after a nine-month slump.

Another challenge for many fleets in 2018 was adjusting to the new government mandate for electronic logging devices (ELDs) that track drivers' hours of service behind the wheel with more strict, accurate records than traditional paper logbooks.

At an industry conference in May 2018, NEMF President Thomas Connery said the Elizabeth, N.J.-based carrier was feeling the pinch of market pressures including tight capacity, rising costs, and driver shortages.He told attendees at the NASSTRAC annual Shipper's Conference and Transportation Expo that those conditions had been present through the first half of 2018 and showed little promise of easing in 2019 even if the economy softened as many followers have predicted.

In its bankruptcy announcement yesterday, NEMF reiterated the impact of those same conditions as it explained why it and 10 related trucking lines had voluntarily filed for relief under Chapter 11 of the bankruptcy code.

"We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant," said Vincent Colistra, a senior managing director with Phoenix Management Services, LLC. Phoenix is a Chadds Ford, Pa.-based management consulting firm that is serving as NEMF's restructuring advisor

"Following two years of losses, and with continuing and unsustainable rises in overhead as well as a severe industry shortage of drivers, we have concluded that the company has no choice but to proceed with an orderly wind-down of operations in a Chapter 11 proceeding," said Colistra, who now serves as chief restructuring officer (CRO) for NEMF.

Upon Phoenix' recommendation, NEMF has determined that a Chapter 11 proceeding is the best mechanism to maximize the value of its assets for the benefit of its employees and various creditor constituencies, the company said in a release.

NEMF's assets include more than 10,000 pieces of equipment and 40 terminals throughout the Northeast, Midwest and Puerto Rico, the company's website states. In addition to those company-owned terminals, tractors, trailers, and straight trucks, NEMF also provides specialized equipment such as temperature controlled, flat beds, and garment-on-hanger (GOH) units.

Transportation Trucking Less-than-Truckload Business Management & Finance
KEYWORDS New England Motor Freight Inc. (NEMF)
  • Related Articles

    Largest pooler of plastic pallets files bankruptcy; 1.5 million missing pallets seen partly to blame

    Celadon bankruptcy could aid survivors in truckload freight market

    Port Jersey Logistics LTL consolidation service to New England

Recent Articles by DC Velocity Staff

ProMatDX 2021: Lift trucks get lighter, more spacious

ProMatDX: Facility design in the age of “new” commerce

ProMatDX: Finding sustainable warehouse solutions

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

Eb277b97 c776 48f1 98e6 6591f2fc98c2

Are you Considering Using Automated Guided Vehicles or Autonomous Mobile Robots in your Facility?

DCV-TV 4: Viewer Contributed
Flooring is one key component that should be considered for optimal robotic performance on elevated platforms. Gloss, texture, wear, and the condition of the floor can all effect the ability of the robot to run at its peak operating levels. Learn how ResinDek flooring can solve these issues.

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing