Post by 06impala on May 19, 2008 10:43:22 GMT -5
Read this this morning at breakfast.
Jevic Transportation closes, citing fuel costs
STAFF AND WIRE REPORTS
Jevic Transportation Inc., a closely held trucking company based in Delanco, Burlington County, closed today, citing high diesel prices and slumping freight demand in a weakened U.S. economy, Bloomberg News reported this morning.
Bloomberg said that chief executive officer David Gorman cited "high fuel costs, economic downturn, increasing insurance costs and tightening credit markets" in a letter to customers posted today on the Delanco, New Jersey-based company's Web site, which at midmorning was still touting "top Pay - pay scales at the top of the industry."
Gorman's letter read:
"I regret to inform you that Jevic Transportation Inc. will be discontinuing operations. The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary. Jevic will stop providing pickup service effective Monday 5/19/08. However, we will continue operating to deliver all freight within our system prior to closing.
"Operations and Customer Service:
"Jevic will not be accepting pickup requests after Friday 5/16/08 and the web and EDI pickup functions will be disabled.
"We will continue to provide Customer Service through the wind down period at 888-Go-Jevic. We ask that you please utilize the automated voice response system as much as possible as the number of calls is expected to be high and there will be longer hold times.
"The Jevic website will remain active and will be updated during the period as well and that should be your primary point of contact for tracing and needed documentation.
"We greatly appreciate the loyalty of our many Jevic customers. It has been our pleasure to provide solutions to your transportation needs over these many years. We are committed to providing the prompt delivery of your shipments in our system and professional customer service for all your needs during this process. Thank you again."
Jevic Transportation was founded in 1981 by Harry Muhlschlegel and his wife, Karen
Using emerging technology and his experience on the road to increase efficiency, they built a major carrier. They took the company public in 1997, holding on to 70 percent of its stock.
Muhlschlegel was not happy after his company went public.
"Harry likes trucks and to make decisions and get things done. He doesn't want to spend weeks in meetings," Jim Molinari, who worked with him there and at another trucking company he founded, said last year in an Inquirer interview.
That second company is New Century Transportation.
National transportation company Yellow Corp. (now known as YRC Worldwide Inc.) bought Jevic in 1999 for $200 million, all cash.
SCS Transportation Inc., which was spun off from Yellow Corp. in 2002, announced in July 2006 that it had sold the assets of its Jevic Transportation unit to Sun Capital Partners Inc., a leveraged buyout and investment fund in Boca Raton, Fla., for $40 million plus $12 million in current income-tax benefits.
According to a news release when Jevic was most recently sold, the company specialized in loads between 1,000 and 30,000 pounds, which overlapped both the less-than-truckload and truckload markets.
Jevic Transportation closes, citing fuel costs
STAFF AND WIRE REPORTS
Jevic Transportation Inc., a closely held trucking company based in Delanco, Burlington County, closed today, citing high diesel prices and slumping freight demand in a weakened U.S. economy, Bloomberg News reported this morning.
Bloomberg said that chief executive officer David Gorman cited "high fuel costs, economic downturn, increasing insurance costs and tightening credit markets" in a letter to customers posted today on the Delanco, New Jersey-based company's Web site, which at midmorning was still touting "top Pay - pay scales at the top of the industry."
Gorman's letter read:
"I regret to inform you that Jevic Transportation Inc. will be discontinuing operations. The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary. Jevic will stop providing pickup service effective Monday 5/19/08. However, we will continue operating to deliver all freight within our system prior to closing.
"Operations and Customer Service:
"Jevic will not be accepting pickup requests after Friday 5/16/08 and the web and EDI pickup functions will be disabled.
"We will continue to provide Customer Service through the wind down period at 888-Go-Jevic. We ask that you please utilize the automated voice response system as much as possible as the number of calls is expected to be high and there will be longer hold times.
"The Jevic website will remain active and will be updated during the period as well and that should be your primary point of contact for tracing and needed documentation.
"We greatly appreciate the loyalty of our many Jevic customers. It has been our pleasure to provide solutions to your transportation needs over these many years. We are committed to providing the prompt delivery of your shipments in our system and professional customer service for all your needs during this process. Thank you again."
Jevic Transportation was founded in 1981 by Harry Muhlschlegel and his wife, Karen
Using emerging technology and his experience on the road to increase efficiency, they built a major carrier. They took the company public in 1997, holding on to 70 percent of its stock.
Muhlschlegel was not happy after his company went public.
"Harry likes trucks and to make decisions and get things done. He doesn't want to spend weeks in meetings," Jim Molinari, who worked with him there and at another trucking company he founded, said last year in an Inquirer interview.
That second company is New Century Transportation.
National transportation company Yellow Corp. (now known as YRC Worldwide Inc.) bought Jevic in 1999 for $200 million, all cash.
SCS Transportation Inc., which was spun off from Yellow Corp. in 2002, announced in July 2006 that it had sold the assets of its Jevic Transportation unit to Sun Capital Partners Inc., a leveraged buyout and investment fund in Boca Raton, Fla., for $40 million plus $12 million in current income-tax benefits.
According to a news release when Jevic was most recently sold, the company specialized in loads between 1,000 and 30,000 pounds, which overlapped both the less-than-truckload and truckload markets.
