Celadon’s closure an opportunity for other companies in turbulent times
Story by:@ http://FreightWaves.com
Celadon Group’s (OTC: CGIP) shutdown comes after cross-border shipping had already lost several other full truckload (TL) carriers this year that provided Mexico service.
Matt Silver, founder and CEO of Chicago-based Forager, said Celadon’s closure will affect freight capacity in both the U.S. and Mexico.
“Celadon is one of the largest cross-border providers in North America, so when you have a shutdown of that scale, everyone on both sides of the border is going to feel it,” Silver said. “Celadon’s shutdown is starting a major chain reaction in freight, one we’ve just begun to feel. This is the calm before the storm. Right now, it’s drivers and employees who are suffering. Soon that will trickle down to shippers, then to the public at large.”
Celadon, which declared bankruptcy Dec. 9, was one of the largest north-south TL carriers, with a fleet of around 2,700 trucks. The company was a dominant carrier on the Interstate 35 corridor, running freight from Laredo, Texas, to the Midwest, with a large concentration in the automotive sector.
Covenant Transportation Group Inc. and U.S. Xpress Enterprises also exited the U.S.-Mexico cross-border market this year.
With more than 2,300 trucks, CFI is now the largest remaining TL cross-border operation, followed by P.A.M. Transportation Services with 1,557 trucks. Schneider National and Werner Enterprises are other TL carriers with cross-border operations, and Landstar System and Charger Logistics also have meaningful cross-border TL exposure.
“In Laredo, I feel like there is an opportunity for another big carrier to step up,” Ryley said. “Celadon’s closure is going to lead to a vacuum for a couple of months, like when Covenant and other companies pulled out of Mexico.”
Ryley added that Celadon’s closing could give 3PL providers specializing in cross-border freight a chance for growth.
Story continues HERE @ freightwaves.com
Source and credits: freightwaves.com // iTrucker / Mario Pawlowski