Another LTL carrier closes its doors
By David Hannon -- Purchasing, 8/14/2008 2:00:00 AM
Alvan Motor Freight had seen a lot of market trends in its 67 years of operations as a less-than-truckload carrier based in Kalamazoo, Mich. But the latest "perfect storm" of declining trucking demand, record high fuel costs, a strike at a major automotive-industry customer and tighter credit markets was just more than the 500-employee firm could bear. In early July, it filed Chapter 11 bankruptcy and announced it was closing its doors.
According to a statement, Alvan cites several factors for its demise, including the 87-day strike at automotive supplier American Axle, which Alvan calls one of its top customers. "The resulting trickle-down effect that slowed and/or stopped automotive production was deadly." The company's CEO James Van Zoeren, whose family founded the company in 1941, said he tried to find a buyer for the LTL carrier, "but just couldn't find any takers."
While the news of another LTL carrier filing bankruptcy is not a surprise in today's market, it is yet another reminder to freight and logistics buyers to keep close contact with carriers struggling with fuel and demand.
A week before Alvan closed its doors, JHT Holdings, a holding company for several automotive industry trucking firms, announced a restructuring under Chapter 11 but said it plans to continue operations. The week before that New York-based flatbed steel hauler Path Truck Lines shut its doors. And the biggest filing lately has been Jevic Transportation which shut down in May.
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