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New England Motor Freight files for bankruptcy, ending operations

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New England Motor Freight has long been considered a major player in the Northeast. (Courtesy: NEW ENGLAND MOTOR FREIGHT)

ELIZABETH, N.J. — New England Motor Freight (NEMF) Monday said the company and 10 related entities have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey in Newark.

In a news release NEMF said it intends to use these proceedings to facilitate an orderly wind-down of its operations.

“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 and chief restructuring officer for the  company.

In a news release, the company said that upon the recommendation of its advisors, NEMF had 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.

Phoenix Management Services is serving as the company’s financial and restructuring advisor.

The following letter was sent to employees Monday from Thomas W. Connery, president and chief operating officer.

“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”

New England Motor Freight has long been considered a major player in the Northeast. Published reports said the announcement caught employees, customers and creditors by surprise.

Shevell is the father-in-law of musician Paul McCartney, and his daughter, Nancy Shevell, has held various roles in the company, including vice president.

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ACT Research: Heavy duty markets at the edge of the precipice

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This graph by ACT Research shows freight growth will decline in 2020 and 2021 before accelerating in 2022, Class 8 truck productivity will remain in the negative through 2022 but will become less each year. (Courtesy: ACT RESEARCH)

COLUMBUS, Ind.  – According to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, current data and anecdotes make a strong case that the heavy-duty vehicle markets are at the edge of the precipice.

“Since the start of this demand up-cycle in late 2017, we have targeted this year’s third quarter as the point at which the industry was likely to see production rollover,” said Kenny Vieth, ACT’s president and senior analyst. “That targeting was largely derived from historical precedent, with historical peak-level build lasting between 13 and 15 months. For the current cycle, we date peak build rates to June 2018, so August represents the 15th month of peak-level production.”

Regarding heavy vehicle demand, Vieth said, “At the heart of our cycle duration prediction, carrier profitability and production peaks always lag the freight cycle, so capacity building always accelerates relative to freight growth at exactly the wrong time, every time.

“Large new inventories and deteriorating freight and rate conditions suggest erring on the side of caution remains the right call, and we are warning those in the industry to be prepared for down weeks starting as early as fourth quarter.”

ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies.

More information can be found at www.actresearch.net.

 

 

 

 

 

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FTR’s June Trucking Conditions Index up slightly but still negative

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An FTR executive said although rates remain weak for carriers, they appear at least to be stabilizing. (The Trucker file photo)

BLOOMINGTON, Ind. — FTR’s revised Trucking Conditions Index (TCI) showed a significant improvement in June but remained in slightly negative territory at a reading of -0.82, according to FTR.

Strengthening freight demand and lower diesel prices were offset by weak truckload rates and easing capacity utilization plus some higher financing costs that negatively affected carriers during the month.

FTR’s forecast for the TCI is for it to remain in low single-digit negative range into 2020, but some positive readings are possible during 2019.

Details of the revised TCI for June are found in the August issue of FTR’s Trucking Update, published July 31. The ‘Notes by the Dashboard Light’ section in the current issue explains how FTR’s July 2019 Freight•cast model update affects key FTR metrics on the trucking industry, including the TCI. Along with the TCI and ‘Notes by the Dashboard Light,’ the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs and the truck driver situation.

“Although rates remain weak for carriers, they appear at least to be stabilizing,” said  Avery Vise, vice president of trucking. “Meanwhile, freight demand appears firmer in recent weeks than in early spring, but the outlook is far from rosy given a softening industrial sector. Our biggest near-term concern, however, is the potential impact of the trade war with China on consumer spending and business investment.”

The TCI tracks the changes representing five major conditions in the U.S. truck market. These conditions are freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings (up or down) suggest significant operating changes are likely.

As noted, FTR in July completed a major update of its Freight•cast model, including both updated data and enhancements to the methodology. FTR traditionally has treated the TCI as a contemporaneous assessment of overall conditions at a point in time, so we have made very few changes to historical TCI readings. However, given the noticeably different freight volume and utilization metrics following the model update – especially during 2014 through today – we have restated the TCI back to January 2014. The historical revisions also reflect a more robust measure of market rates that FTR adopted in the spring of 2018. Directionally, the old and new TCI are largely correlated since mid-2016, but the updated TCI shows peak conditions occurring earlier in 2018 than the prior metric. Moreover, that peak range was not as strong and was shorter than previously indicated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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MVT Solutions offers no cost fuel efficiency reports

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Fleets currently relying on MVTS results include Hirschbach Motor Lines, Penske Truck Leasing, Nussbaum Transportation, Mesilla Valley Transportation, C.R. England and Charger Logistics. (Courtesy: MVT SOLUTIONS)

LAS CRUCES, N.M. — MVT Solutions, a provider of fuel economy testing and design and development services for the trucking industry, Thursday said that the test reports for its Certified Products are now available on a no-cost subscription basis.

“Receiving MVTS Certification is a mark of fuel efficiency excellence for a product and we feel strongly that the industry should have that information and the supporting test data in a timely manner and at no cost,” said Daryl Bear, lead engineer & COO at MVT Solutions. “In addition, the suppliers of the certified products have confidence that their results are being delivered by a trusted source to companies that are interested in their technologies.”

While MVT Solutions Certified Products’ Test Reports with the detailed test data on the latest fuel efficiency solutions for transportation companies are posted on the company’s website, the new subscription service ensures results are delivered automatically as soon as they are available giving fleets the ability to have the most up-to-date information, Bear said, adding that fleets currently relying on MVTS results include Hirschbach Motor Lines, Penske Truck Leasing, Nussbaum Transportation, Mesilla Valley Transportation, C.R. England and Charger Logistics.

Certified fuel economy testing by MVT Solutions was developed from race car engineering and advanced vehicle test methods using sensors and recording systems that collect data on fuel consumption, aerodynamics, rolling resistance, driver behavior and other variables that affect fuel consumption. The data is analyzed using proprietary methods.

Subscribing can be done via the MVT Solutions website or by following the company on LinkedIn.

MVT Solutions test reports for custom and developmental testing done for fleets or suppliers are released only with the permission of the company and are not part of the subscription service.

 

 

 

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