This is the first large carrier I’ve noticed to go under. It’s largest creditors were T-Check and a fuel company, so I’m assuming fuel prices played a major part. I hope other preventable factors played a major role, but I would not suspect it. I don’t know too much about Jevic, but they appeared to be a strong company.
I talked to one of their drivers about a year ago and he really liked working for them. He had a reefer LTL deal that was making money for him. I would not have suspected a company involved with LTL and refrigerated to be one of the first big companies to file.
There are plenty of links all over the web about this, but I found this one interesting. What other industry that is non-union would have “so what” type of comments from people? You know out of 3,000 people there are at least quite a few hard working people that have just everything pulled out from underneath of them. Most will find another job quickly, but their health insurance and other benefits are gone, and gone in the blink of an eye with no warning. It will probably have an adverse effect on their customers and their employees too.
I have to wonder how many more companies will follow suit and I would really like to know the details of what went wrong with them. I’m sure I’m not alone. It worries me about the economy overall. Jevic had over 5,000 creditors with the largest debt being over $1.5 million! Wow. If more companies do follow suit, that is a huge wake to leave behind.
I fear this may be bigger than previous market “adjustments” where weaker companies go under. No need for a strike if this keeps going, there will be plenty of involuntary strikers out there.
I should not have checked the news today. It looks like an economic doomsday if you believe it all. I usually don’t believe it, but then you see news like this. Other fuel dependent business, such as airlines, are starting to scream for relief and making drastic changes also. Time will soon tell if Jevic just had common industry problems or if others are on the brink of disaster also.
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It looks like this will end the driver Shortage in the long run as most of us will have no one to drive for. When all is said and done I expect that freight prices will rise when most of the companies have gone under and there is less choice of who will haul it. OR, More Mexican companies will take up the slack and drive the rest of us to below minimum wage pay rates.
There aren’t that many Mexican trucks to begin with. As far as driving the rest of us below minimum wage, what do you think we’re doing to each other now???
At $4.50 a gallon and a truck that gets 5.5 mpg that’s .82 cents a mile just for fuel. Idiots are offering me $1.25 thinking that’s a good rate. In NYC that doesn’t even cover the tolls. This has got to end and the sooner the better.
Jevic was big into hazmat along the east coast last that I knew about them. That might have played into it too. One bad spill can break a company, I’m not saying that they had one, but it is possible. If you ever looked at any of their trailers closely you used to see four or five placard holders on them.
Jevic was last owned by private equity investors. My guess is the Wall Street types just couldn’t handle the red ink. This was a nice company though.