A North Carolina trucking company notified over 200 drivers, employees and mechanics on Tuesday it is ceasing operations after 11 years after some of its major customers demanded “massive rate and volume concessions.”
FreightWorks Transport LLC, doing business as FreightWorks Transportation & Logistics, headquartered in Rutherfordton, operated 186 power units with around 140 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website.
In a video message to employees and drivers, Joyce Siqueira, vice president of operations for FreightWorks, said the “most honorable path that we can take for the benefit of our employees, our customers and our other stakeholders is an orderly closing of the company.”
Siqueira said the company was unable to see a path forward after a few of its core contract customers abruptly demanded significant rate reductions, amounting to millions of dollars. The death knell occurred when one of FreightWorks’ largest contract customers “pulled a significant percentage of the company’s freight” on Feb. 28.
“This had an immediate and very devastating impact on our ability to make payroll, let alone cover our rent, truck payments and other expenses,” Siqueira said in the video reviewed by FreightWaves. “Several other events that same day compounded these already overwhelming challenges. In an incredibly weak freight market, we are simply unable to replace this lost freight with enough profitable work for us to be sustainable.”
The asset-based truckload carrier was founded with one truck in 2012 after production exceeded sales at the small family owned biodiesel plant, FuelWorks, founded by FreightWorks President and CEO Josh Farmer in North Carolina. The company was hauling mainly perishable items at the time of its closure.
The company had survived previous freight recessions because FreightWorks was largely insulated by its contract customers. Siqueira assured employees and drivers that concessions demanded by its customers “were solely due to market pressures” and had nothing to do with the truckload carrier’s execution and performance.
A former FreightWorks employee also shared the memo sent to employees and drivers — dated for “immediate release on March 10” — but it appears the truckload carrier was forced to cease operations earlier than expected.
Effective immediately, Siqueira said FreightWorks will no longer be picking up loads.
“This is very important to us to make sure that the millions of dollars of our customers’ freight that’s on the road right now, which is mostly perishable goods, is not ruined in the process of our shutting down,” she said.
No trucks will be stranded on road
The company will coordinate with drivers on how they should return equipment — either taking it to a designated drop yard or to their homes for now.
“We will make sure that everyone has the means to get home safe,” Siqueira said. “We are committed to ensuring that every driver is paid for the final delivery.”
Additionally, FreightWorks is asking for drivers’ help. The company will pay a $500 bonus for those who assist it in delivering their loads once the carrier has received a signed bill of lading.
“We didn’t run a trucking company just to move freight,” Siqueira said. “We ran a trucking company to take care of people.”
Watch FWNOW about FreightWorks Transport’s shutdown here:
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Timothy Dooner of What The Truck?!? and James “Rooster” Bowen of Back The Truck Up contributed to this report.
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Harun N Maina
Carrier should and must not accept cheap loads. I believe if carriers can stay home for a week, just one week, the loadboard will be adjusted upward.
Government should do something
Mike J
Thank Our Secretary of Transportation, Mayor Pete, & his boss President Biden. May God bless all the drivers.
Kenneth Smith
This is another government strategy for the Green movement. High fuel and “road Tax”, regulations, and restrictions will drive companies out of business. No one cares until there a shortages and more accidents due to a more diversified driver movement.i want to thank all truck drivers for their commitment and safe driving practices.
Mike Neace
I started driving a week before the big strike from deregulation, if anyone remembers that time.
We are headed there again, rates drop,fuel prices skyrocket,brokers think their untouchable, Shippers want you to haul it cheaper than what it takes for fuel. I will say DOT is more informative now than back then.
If this is the lifestyle/career that you want, tighten up your belt,saddle up and hold on but most importantly CALL YOUR LOCAL CONGRESSMAN AND VOICE YOUR OPINION!! Call him or her more than once, start a monthly or even weekly conversation even if it by e-mail
DRIVERS-COMPANY OWNERS: THIS CAN BE FIXED IF WE ALL BAND TOGETHER AND LET ELECTED OFFICALS HEAR US!
Even if you work in a different state call or e-mail that congressman, I do!
Sammy
I hope those cheap loads go undelivered and lost in transit or set at warehouses until expired and that those companies demanding the rate reductions end up losing millions and billions.
John S
Trucking industry is in bad shape and we have nobody in government who is qualified to deal with these issues. Rates should be going up not down.
Cost of operating a fleet of trucks or just one truck operations are increasing not decreasing. Safety is an issue when shippers start looking for the cheapest ways and demanding cost reductions from trucking companies. Yet the EPA just raised the bar on diesel truck engine emissions yet again for 2027. A added costs for truck purchases that will be significant. Not to mention the obvious cost added to maintenance. Sadly, stability seems nowhere to be found in trucking these days.
Patrick
Wait.. is this real? I’ve been waiting to join them when I finish with the mega I’m currently a part of . Damnit! Now I got to find another place to go -.-
OGM Production Studio BBYUA Trucking LLC
OGM Production Studio BBYUA Trucking LLC,
In retrospect the economy has shown in data trucking industry standards we’re heading towards an abrupt stop in market analysis compliance companies (Foely Services[an OGM hired safer compliance Company]) has shown in its weekly and monthly mandated analyzes in which industry standards were in fact on a major and still on a major down slope in which their is no potential gain unless the market shares open up for smaller companies to survive in which there is no evidence in which to support. Within the next 7 years the industry standards will reflect as such. Older drivers are calling it quits and retaining there equipment and going off the road until change or indefinite. There is really no need in which to create a company with such large amounts of trucks to compete with companies that have already established ground breaking connections it won’t ever happen unless those companies go bankrupt in which they have policies set in place that will retain such action from happing which case is a solid way to the bank to negotiate the terms and agreements to hold on to drivers and keep business rolling. In all honesty the trucking world is great, you need years of dedicated training to become instantly successful or enough working capital to compete with companies that have 1000’s of trucks and 100’s of thousands of employees. Unless your willing to take a signifiant down side to your finances for years to come. Be safe be cool stay cool how you stay cool and following all FMCSA rules
You can make all the money you want to
OGM Production Studio BBYUA Trucking LLC