Crouse Cartage Closes Despite Attempts to Stop Rising Losses
TransFinancial Holdings shut down its money-losing Crouse Cartage Co. subsidiary Sept. 16 after giving up on efforts to stem a rising tide of red ink at the 59-year-old Midwest-based trucking company.
While the loss of that freight-hauling capacity and strong economic growth lifted the fortunes of many of the remaining national and regional LTL carriers over the past year, it apparently wasn’t enough to keep Crouse afloat.
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Crouse, a unionized carrier that served customers in 22 states, is the first major failure in the less-than-truckload segment of the industry since the demise of three large regional and interregional carriers in 1999 and could signal the beginning of a new shake-out as carriers battle higher costs for fuel and labor, equipment and real estate.
Milwaukee-based ANR Advance Transportation closed in January 1999 following a protracted labor dispute. NationsWay Transport of Denver filed for bankruptcy in May 1999 and Preston Trucking Co. ceased operating in July 1999. The three carriers had combined annual revenue of about $1 billion.
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