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Home / Business / LTL operator New England Motor Freight to shut down after application for bankruptcy protection – FreightWaves

LTL operator New England Motor Freight to shut down after application for bankruptcy protection – FreightWaves



While business takers knew that NEMF had problems, no one had expected bankruptcy proceedings and a subsequent closure. In addition, LTL capacity is currently so tight that it will not be impossible to efficiently absorb all NEMF volumes at the prices used by shippers, says Satish Jindel, who is the consulting firm ShipMatrix, and is familiar with NEMF's business. "There is not enough supply in the market to deal with this," he said in an interview late today.

According to Jindel, NEMF was weighed down by "heavy" contracts with several very large carriers, one of them like Amazon .com, Inc. (NASDAQ: AMZN). The contracts not only forced NEMF to operate on very thin margins, but made it difficult for the carrier to effectively serve other accounts that delivered better margins, Jindel says.

NEMF's bankruptcy and closure should serve as a cautionary story to shippers who took advantage of the carrier, and will now find themselves paying more to be transported away, Jindel said. It's also a devastating blow to Myron P. Shavell, who bought today's NEMF in 1

977 when it was in deep economic trouble, built it into the nation's fastest growing family-owned LTL operator, and at 84, (f, b, e, v, n, t, s) {if (f.fbq) return; n = f.fbq = function () {n.callMethod?
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