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  • DATVF.VNU
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  • DATVF.VSU
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  • ITVI.USA
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  • OTRI.USA
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NewsTrucking

Breaking News: Another motor carrier abruptly ceases operations amid freight recession (with video)

Another motor carrier has fallen victim to this year’s freight recession as Terrill Transportation Inc. of Livermore, California, abruptly ceased operations on July 30.

Manny Bhandal, president of Bhandal Bros. Inc., of Hollister, California, said three of his refrigerated trucks loaded with candy arrived at Terrill’s warehousing and storage company early on July 30 and were turned away.

“We did get an email from one of their receiving clerks, basically apologizing that they couldn’t receive our trucks because they were ceasing operations,” Bhandal told FreightWaves.

Bhandal said he was surprised by the news that the 25-year operation was shutting its doors, as his trucks made weekly deliveries there.

“This year has been very tough on a lot of companies,” he said.

Kevin Terrill, president of Terrill Transportation, did not respond to FreightWaves’ phone calls or email requests for comment about the closure. 

After hearing about trucks being turned away at Terrill’s warehousing facility, the chief executive of a trucking company based out of the Northwest said he called Kevin Terrill, who confirmed the news his company was shuttering operations immediately.

“He [Kevin] said rate concessions on both the trucking and warehousing side, driver wages being up and the tough environment to do business in California were to blame for the closure,” the trucking company executive, who did not want to be named, told FreightWaves.

According to the Federal Motor Carrier Safety Administration’s SAFER website, Terrill Trucking had 30 trucks and 36 company drivers. It also had 12 owner-operators. 

This is the seventh major closure in 2019. The others were NEMF, Falcon, Williams Trucking of Dothan, Alabama, Indiana-based A.L.A., Starlite Trucking and LME.

This is a developing story.

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Clarissa Hawes

Clarissa has covered all aspects of the trucking industry for 13 years. She is an award-winning journalist known for her investigative and business reporting. Prior to joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. Clarissa lives in Grain Valley, Missouri, with her family.

33 Comments

  1. Another small carrier goes out of business. Meanwhile the megas are claiming upswings and record breaking revenue numbers. Are you paying attention or do you still have the wool over your eyes?

  2. Where can I find data on how many carriers have closed their doors in the last 18 months in California vs. other states ?

    1. Also the biggest problems is these Shipper who are not willing to work directly with carriers, all they want to work is with brokers. We are small carrier and are calling shippers for direct freight , but these shippers are telling us that they would rather just work with the broker they are working with while bankruptcy small business in america.

      1. I work for a shipper in Kansas, and we would rather work with mom and pop operations aver brokers any day of the week. Shippers who refuse to work with CC’s are lazy and don’t want to put in the work to build relationships with their transportation providers.

        1. Agreed Jennifer. I own a trucking company in the Detroit metro area. We run about 20 semi’s and some smaller trucks. I have found in the 20 years we have been in business that this is “still” a people business despite all the technology that has been introduced. Furthermore, I believe that when the brick and mortar company comes to us, they get solutions based service. Going to a brokerage, where they have college kids throwing nerf footballs around the office, may work on many loads…but God forbid if you need someone in your corner to help you with a problem.

          1. Interesting perception on brokers. Not all brokers are created equal just like asset based carriers. You have some good ones and you have some bad ones. From a Schneider Brokerage perspective we have and continue to bring supply change initiatives that bring value to our customers and yes even with freshly graduated college associates. Majority of them are highly motived and they bring value to their customer base as well as to our carriers’. They bring new way of thinking…,of strategy and if you can harness this like we do at Schneider you create a highly effective culture that brings value across the board.

          2. I work at a brokerage and can confirm that there are definitely some trucking companies that have great service and take pride in their work. However, I do spend the majority of my day babysitting drivers and trying to communicate load details/changes with unresponsive or combative dispatchers. If I weren’t playing middle man with some of these unorganized trucking companies the shippers would be left completely in the dark. That is not to say driving is easy or carriers aren’t doing most of the work, but it helps explain why the need for brokerages still exists.

            I think attitudes like Tony’s are what keeps my job safe (or at least until automation figures it out). Every shipper would ship direct if it were cheaper and the service were better, Jennifer saying it’s because they’re lazy is a cop out. The ability to service loads and access to capacity are why shippers are willing to pay more to brokers. It’s silly to assume that shipper’s are just too dumb to figure it out, they are savvy folks.

            The workforce has changed in the last 20 years, something tells me you would see every modern company as college kids throwing around footballs.” Everyone in my office has their work phone and laptop with them at all times to address customer issues (even though it’s very rare that I get answers from carriers/shippers after hours). Furthermore I report to people with decades of experience in both the transportation and brokerage industries.

            An honest conversation would be a good place to start if transportation companies are serious about getting their market share back from brokers.

          3. Amen to that !! I work for a shipper I have really been hungry this year with loads. I refuse to beat down the carriers with these rates . So my boss has found someone who has cheap trucks and they are getting all the extra freight . ( to a large broker) I work with some brokerages but they are small and we have one on one and I can contact them anytime day or night and they can me as well. When there is a problem we are in it together until it is resolved. I love what I do but really fear what’s to come.

          4. I work for a mid level 3PL and we focus on our clients overall needs and a great working relationship with our carriers as well. While I agree as noted above “tossing a football around the office by college kids” is not the way to trust your freight. At Diversified Transportation Services, http://www.dtsone.com we have 29 years of creating long lasting strong relationships with our clients, our carriers, and our operational teams. We are professionals and work very hard to provide technological advances in helping our clients meet their core goals. No companies goals are the same when it comes to managing a supply chain, at Diversified Transportation Services, you will see a huge difference as to how we take care of our clients. As with any business, there are good providers and ok providers…… Not all business entities are created equal..

  3. This is a major carrier closure? California is a terrible place to do business. If less freight moves to and through it maybe their legislators will wake up and do something. Most likely they won’t. Plenty of illegals in Cali, let them deliver freight by hand. Beats a life of stealing and murder.

    1. I feel your frustration in regards to illegals in CA. But your are wrong. Not all illegals steal and murder.

    2. Somebody’s been watching Trump State TV a little too much.
      Your best workers you will find in 1st Generation immigrants, citizens, residents or illegals.
      It’s the entitled native-born ‘Merican trailer trash that gives me headaches. Immigrants work hard and only expect reward for work.

  4. Realignment of the trucking industry and businesses that no longer want to do business in California. They could perhaps setup in Nevada.

    1. Agree in the since, why didn’t Terrill look to move its incorporation from CA to another state such as NV. Understand continuing to do business in CA no matter where you are incorporated is still an issue, but there would appear to be significant tax cost savings incorporating in another state, even if its just incorporating while the HQ remains in CA. Many Fortune 500’s incorporate in DE though their HQ is in NY, IL, FL, TX, etc.

  5. Not just California folks. This has a lot to do with the freight recession upon us that we are not acknowledging:
    Arrow Trucking
    Falcon Transport in Ohio
    Williams Trucking in Alabama
    ALA Trucking in Indiana
    Lake Motors Express in Minnesotta
    Timmerman Starlite Trucking Inc. in California
    Terrill Transportation Inc. in California

    1. Those are only carriers who report the shot down but there are many carriers that don’t report to news their closure/bankruptcy like us. We shout down a company with 28 trucks 38 drivers plus office employees on May 1st out of IL. Also the accouter who’s preparing the taxes said there are more companies and bigger than us in the same situation. So what’s in the news are just top of the iceberg!!!

  6. https://www.cincinnati.com/story/news/2019/07/24/tql-expanding-its-headquarters-adding-600-new-jobs/1813114001/

    Meanwhile TQL is expanding. I wonder why and from who.
    As a company owner I never did business with them in 8 years cuz the 1st load we tried to do.
    They held us overnight and canceled the next day with no layover.
    My payback to them I click on the loads they show on http://www.Truckstop.com and when they call me it goes straight to VoiceMail.
    Auto Block TQL for LIFE…
    AHAHAHHAHAHAHAHAHAHHAHAHAHAHAHAHHAHAHAH

  7. Someone want to let the “The Don” know? He is blowing his big ass horn everyday about how great the economy is under his watch??

    1. It would appear to Me that You would Educate Yourself a little better before Blaming the President, Maybe look at Your Governor and He tax structure. California is not only pushing Business out of the state, but also People.. call Hertz and ask the price of a moving truck from Texas to California, the price will make you take a deep breath, then make another call and ask the price from California to Texas and You will find it’s in half just to get their equipment the Hell out of there.. Wake Up and Get Educated ??

  8. HOW MANY MORE TO FAIL DUE TO THE BROKERS KEEPING 30% OFF THE TOP PLUS THE FSC WITH NO REMORSE AND THEN WANT TO CHARGE BAK IF YOUR LATE DUE TO CIRCUMSTANCES YOU CANNOT CONTOL LIKE HOURS OF SERVICE, SHIPPER TAKING TO LONG TO LOAD YOU THIS NEEDS IMMEDIATE ATTENTION NOT LATER N O W

    1. I watch the load boards. It’s not all about them keeping 30%. Some of these shippers say they want to move freight from a-b but I’ll only pay x… I do believe the brokers should tell those customers I won’t post freight that low. That would show me they at least take a little pride in their work.

  9. I’m sick of hearing about the “Blood bath of 2019” and “freight recession”. Did anyone actually believe that the freight market of a year ago would just maintain indefinitely? Volumes and rates may be down from a year ago, but it simply righted itself. The ebb and flow of freight goes way beyond a 12 month period. If you are managing your company and customers correctly, you are not closing your doors.

    1. Many shippers took it on the chin in 2018. Freight rates were over inflated, in my opinion, by a hysteria created by the “fear” of the ELD issue…many are now looking for literal and metaphorical payback…

  10. Higher insurance cost
    ELD mandate
    Super cheap rates and super cheap carriers.
    Mega carriers fight to death against small O/O.
    Very soon self driving truck to be added to this list.
    More small carriers to follow in bankruptcy.

  11. quote :
    “Bob
    says:
    07/31/2019 at 3:00 pm
    I work at a brokerage and can confirm that there are definitely some trucking companies that have great service and take pride in their work. However, I do spend the majority of my day babysitting drivers and trying to communicate load details/changes with unresponsive or combative dispatchers. If I weren’t playing middle man with some of these unorganized trucking companies the shippers would be left completely in the dark. That is not to say driving is easy or carriers aren’t doing most of the work, but it helps explain why the need for brokerages still exists. ”

    LISTEN TO HIM !!!

    He’s telling you straight out what the major problem is in the trucking industry ! A lack of organization !!!

    If drivers understood this , I mean really understood this then they could “organize” and literally own and control the trucking industry !

    I have been advocating this all along . UNITE ! And bring all trucking operations in house under one roof ! Stop complaining without offering realistic solutions . And the only place you will truly be heard is if you UNITE and create your own organization !

    I have analyzed the industry from the bottom up . First one must be willing to walk in the driver’s shoes . Most dispatchers haven’t ! Then you need to walk in a freight broker’s shoes , and a Carrier’s . It takes organizational skills , understanding , critical thinking , innovation , and an deep economic understanding .

    There is no reason for drivers to lack skill , nor a dispatcher , nor a broker , nor a carrier , and certainly not management right up to the executive and board of directors ! However, they all lack the ultimate ingredient and that’s why most drivers are painted as the “problem” . The driver is the industry’s scapegoat for a lack of savoir fair .

    Then it leads to politics of which carriers united and created associations which are public relations lobby groups .

    Drivers need to create their own association for ALL drivers . With a little innovation and reorganizing the pieces of the puzzle through a clever structure you can literally control and own this industry . It takes a lot of savvy . YOU collectively have this ! You have knowledge and experience ! You just need to get together and stop fighting among yourselves ! Your division is your weakness , and that’s why you’re simply treated as a tool and nothing else .

    While I believe drivers are an incredible asset that have been and are misunderstood and exploited , drivers need to wake up and commit to creating the change they desire BEFORE they are replaced by a machine .

    The clock is ticking . The trucking industry & transportation sector contains power beyond belief , yet extremely vulnerable . Just like your “mind” ! When are you going to realize this and take a stand ? Together you are strong , divided you are weak . So UNITE and create the change you long for and desire !

    Through a well thought out structured driver organization you can own the transportation sector . You can take this sector and industry by storm ! Stop thinking like a slave and grow up into the leader you have been created to be !

    In my humble opinion ………………….

    1. The day you get an autonomous truck to perform multiple LTL deliveries in Newark, Bronx, Brooklyn, and Queens, is the day monkeys fly out of my butt.

  12. As a broker myself, I respectfully would like to add a comment to this thread.
    Straight to the point now, and call it what you want, My small (kept that way) brokerage with some but very little overhead (kept that way) also no big fancy offices (kept that way) where the lease cost are getting passed on to “you know who” and so many other “business luxuries” that many brokers do without needing to do passing it on to higher rates etc.
    Simple, owner operators here, shippers here, and any others that are interested, send a note, I will send back application for drivers interested in getting a lot more % of what they do working with us, shippers, send a note, and if you provide detailed shipping needs on shipments, I will send you back a very favorable quote, you will find that getting us to do your shipping will have huge savings on those needs moving forward.
    Now, how is the shipper going to save money and drivers make money, dont make sense, well makes plenty of sense when the model is “Profit Sharing”, cutting our profit per loads to huge savings for shippers and huge earning for drivers, will actually prove to be more profits in long run for our company, think about it, will make plenty of sense.
    Thank you all for reading and the very best of future savings and earnings to all involved!
    contact jjnagy@3americasholdings.com for application, quotes and/or information

    1. You maybe a well intentioned broker; however, I’m here to say that Uber Freight is here to put you out of business and there will be nothing you can do about it. You exist mainly to suck money out of the revenue stream, while performing no more of a function than what a simple App could do.

      1. Zoinkd Goodly, Uber continues to hemorrhage money to gain market share how long can this go on? And if Uber and companies like them are so much better than freight brokerages How come they hire brokers? don’t get me wrong Uber and like companies have great technology platforms. U also have to account for shippers whose freight is less than desirable for most carriers. You need a broker to talk the carrier into hauling it. I have a customer who had Uber come in and demonstrate thier platform. I was very happy to find out that Uber platform did not work with customers business mode. According to Industry analysts 2018 info, freight platforms like Uber will account for 6-8% of market share for the foreseeable future.

  13. “Freight Recession” huh? Yeah, sure. try a REAL recession and freight is signalling it for all to see. An industry that big which serves the entire economy is a bellwether.

    1. I like to go with data. The data in the freight sector suggests it is down hill. This sector is indeed a bellwether for the economy at large. So it is not a surprise that those businesses dependent on it will start to show stress signal especially if they had holes in their business model to begin with – usually when business is good, its easy to ignore those things.
      As for the economy at large – I would concur with you:
      Retail jobs have been sliding for more than six months and the goods producing part of GDP including construction has been weak.
      I hope the Feds know what they are doing, but I for one have not gotten this far by sticking my head in the sand in the hopes that the signs are false.

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