Updated late Friday with additional information about the closure.
An Illinois-based trucking and logistics company, which contracted with the U.S. Postal Service to haul mail has notified over 650 employees, including more than 480 drivers, that the carrier is ceasing operations, according to sources familiar with the closure.
Former truck drivers for Midwest Transport Inc. (MTI), headquartered in Robinson, Illinois, told FreightWaves that they received telephone calls from their regional managers late Thursday notifying them the company was winding down operations.
As of publication on Friday, MTI has not issued a formal statement about what led to the closure. However, FreightWaves confirmed with some former senior managers and truck drivers who worked for the mail contractor that the company was ending operations. They did not want to be named in the article for fear of retaliation.
According to an email sent to MTI employees and drivers about the closing late Friday, which was obtained by FreightWaves, the company stated that postal operations “will complete all trips through the trips that begin on Sunday, September 8. Freight operations should be following the instructions from your load planners on returning. Terminal and office personnel will receive information and updates from your managers as we progress through this transition.”
MTI, founded in 1980, operated key terminals in Greenup, Illinois; Harmony, Pennsylvania; Memphis, Tennessee; and two terminals in Tampa and Jacksonville, Florida, according to its website.
MTI had over 480 drivers and 428 power units, according to the Federal Motor Carrier Safety Administration’s SAFER website.
FMCSA data shows the company’s trucks had been inspected 244 times, and 65 had been placed out of service for a 27% out-of-service rate over the preceding 24-month period. That is significantly higher than the industry’s national average of around 22%.
MTI’s drivers had been inspected 564 times, and 16 were placed out of service over a two-year period, resulting in a nearly 3% out-of-service rate. That is less than half the industry’s national average of 7%, according to FMCSA.
The trucking company had 21 injuries and 42 tow-aways over the past 24 months.
According to the SAFER database, MTI was cited for acute/critical violations in two categories: controlled substances/alcohol and driver fitness.
A check on SAFER shows that MTI’s common, contract and broker authorities remain active. MTI had two compliance reviews on July 7 and July 25, according to FMCSA data.
As of publication Friday, MTI had not filed a notice of its impending closure in Illinois, Tennessee, Pennsylvania or Florida.
One longtime former MTI driver said he was surprised by the news the company was ceasing operations but said that drivers had started receiving notices over the past few months to ensure their log books were certified after each run and to watch their speed and improve their on-time performance.
“I don’t know what happened because we had a lot of postal contracts all over the U.S.,” a former MTI driver told FreightWaves. “I [don’t know if] the USPS is just finding out like us [that] the mail will be sitting on the docks on Monday.”
A media spokesperson with the Postal Service did not immediately return FreightWaves’ request for comment.
This is a developing story.
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