- New England Motor Freight, the 19th-largest less-than-truckload (LTL) trucking company in the US, filed for bankruptcy protection on Monday.
- Several top freight analysts said one of NEMF’s challenges was its contract with Amazon, which tends to provide lots of packages that are of relatively low value.
- “Amazon contracts are pretty demanding,” one analyst told Business Insider. “Because they’re growing so rapidly, they can suck up a lot more of your capacity that you planned to make available to them.”
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One of the less-than-truckload sector’s largest companies declared bankruptcy on Monday.
New England Motor Freight (NEWF), whose 2017 revenue totaled $402 million, intends to have an “orderly wind-down of its operations.” It specialized in less-than-truckload (LTL) hauling, in which multiple shippers share a truck space to ship packages. The announcement struck transportation insiders as surprising, considering that trucking grew at a wild pace in 2018 and is still making decent gains this year.
But analysts said NEMF’s challenges can’t be attributed to the market but rather to other pitfalls that are plaguing trucking companies nationwide.
Satish Jindel, the SJ Consulting Group’s principal consultant,…