A major player in the logistics industry has been reduced to a giant yard sale. Trucking giant Consolidated Freightways of Vancouver, Wash. closed on Sept. 2, filed Chapter 11 and was forced to sell off all of its assets. It was with tragic irony that the company chose Labor Day to terminate its 15,500 U.S.-based employees by locking its doors and leaving a recorded telephone message telling employees their "employment ends immediately."

While Consolidated's customers have been able to find other carriers to take their loads (LTL competitor Yellow Corp. reported numerous customer calls in the days following the announcement), shippers and market watchers are expecting LTL rates to increase with Consolidated out of the picture. Trucking industry analyst Daniel Moore of Stephens Inc. says Consolidated kept market prices lower by offering discounted rates in an effort to attract new business before its demise.

Consolidated is reopening certain terminals and bringing back some employees to expedite shipments remaining in its network. The company may face lawsuits from government and union representatives for violating rules concerning plant closures in certain states.

dhannon@reedbusiness.com