Events Calendar
In This Section
Most Read Stories
Blogs:
Pets:
Summit teams up with Rescue Waggin' to save dogs
The Heldenfiles:
Songs for an American Day
Patrick McManamon:
Touching on the Browns, Cavs
Akron Zips:
Opponent outlook: Northern Illinois
Browns Bulletin:
Single-game ticket sales begin July 11
Tribe Matters:
Wedge assured of job through season
Cleveland Browns:
Stallworth test showed marijuana
Kent State Sports:
Men's Basketball Scheduling update
Cleveland Cavaliers:
Updated: Free Agency: Another Gone - Apparently
All Da King's Men:
The Obligatory Palin Post
Blog of Mass Destruction:
Wow….Sarah Palin Resigns Governorship
Akron Law Café:
Abraham Lincoln and the Fourth of July
Varsity Letters:
Highland senior receives honor
See Jane Style:
Picnic Wear
Car Chase:
Where do We Go from Here?
Let's Talk Real Estate:
Happy 4th of July!
Ohio Travels with Betty:
Tom asks where to stay while visiting the football Hall of Fame.
Sound Check:
Rundgren fans rejoice!: Second night of AWATS at The Civic added
HRLite House:
Morscruethal Behaviors or Just Lip Service?
Akron Gamer:
Hot link: Best of Nintendo at E3
Jevic Transportation a former YRC property
By Angela Greiling Keane
Bloomberg News
Published on Tuesday, May 20, 2008
Jevic Transportation Inc., a closely held trucking company, is shutting down as the industry grapples with record diesel fuel prices and slumping freight demand in a weakened U.S. economy.
Jevic's demise pares trucking capacity, giving competitors a chance to raise rates, said Jason Seidl, an independent transportation analyst who left Credit Suisse this year.
''Pricing weakness in the overall trucking market and skyrocketing diesel fuel prices were the two final straws that broke this camel's back,'' Seidl said. ''I expect trucking failures to pick up steam as we move through the second quarter, which should help the out-of-balance supply/demand situation.''
Jevic was driven out of business by high fuel expenses, rising insurance bills, tightening credit and the slowing economy, Chief Executive Officer David Gorman said in a letter to customers on the Delanco, N.J.-based company's Web site.
U.S. trucking companies paid $4.52 a gallon for diesel fuel Saturday, up 32 percent this year, according to motoring group AAA. They're also hauling less freight as a real estate recession curbs housing starts.
Jevic was acquired in 2006 by Boca Raton, Fla.-based Sun Capital Partners from trucking company Saia Inc.
YRC Worldwide Inc., the biggest U.S. trucker by sales, spun off Jevic and Saia in 2002 as SCS Transportation, which took the Saia name after unloading Jevic.
Jevic is a less-than-truckload carrier, hauling freight from more than one customer in each trailer. Competitors including YRC have struggled in recent quarters. YRC, parent of Roadway operations based in Akron, posted losses the past two quarters.
Jevic Transportation Inc., a closely held trucking company, is shutting down as the industry grapples with record diesel fuel prices and slumping freight demand in a weakened U.S. economy.
Get the full article here.
Comments
Click here to post your comments
