NationsWay Closure Sparks Scramble For Carrier's Drivers

The May 20 closure of NationsWay Transport Service, one of the largest less-than-truckload operations in the country, caught many shippers and employees by surprise, even though the Colorado-based freight carrier had been unprofitable in recent years.

The shut down, which came after the company declared bankruptcy, also created a windfall for competing fleets and set off a recruiting frenzy by carriers eager to hire NationsWay's experienced truck drivers.

NationsWay President Jerry D. McMorris told the Denver Post that the company could no longer compete with smaller, mostly nonunion freight carriers.

The company owed approximately $2 million to the Central States Southeast and Southwest Pension Fund, which administers pensions for Teamsters union members covered under the National Master Freight Agreement.

According to a NationsWay official, Central States refused a company request to delay payment while it pursued a financial restructuring.

On the advice of counsel, McMorris said he decided to file for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code in Phoenix and to begin liquidating the trucking operations.

"It's a blow," he was quoted as saying. "We couldn't get our costs down over the last five years to make a profit. We were put into a position that we couldn't continue to battle that."

Cal Wolfe, vice president of human resources, said the company stopped picking up freight on the evening of May 19, but continued to deliver the freight in the system.

For the full story, see the May 31 print edition of Transport Topics. Subscribe today.