• ITVI.USA
    15,569.490
    38.910
    0.3%
  • OTRI.USA
    24.260
    -0.060
    -0.2%
  • OTVI.USA
    15,521.990
    37.880
    0.2%
  • TLT.USA
    2.700
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.050
    -2%
  • TSTOPVRPM.CHIATL
    3.080
    0.050
    1.7%
  • TSTOPVRPM.DALLAX
    1.370
    -0.080
    -5.5%
  • TSTOPVRPM.LAXDAL
    2.950
    0.040
    1.4%
  • TSTOPVRPM.PHLCHI
    1.690
    -0.010
    -0.6%
  • TSTOPVRPM.LAXSEA
    3.130
    0.110
    3.6%
  • WAIT.USA
    120.000
    0.000
    0%
  • ITVI.USA
    15,569.490
    38.910
    0.3%
  • OTRI.USA
    24.260
    -0.060
    -0.2%
  • OTVI.USA
    15,521.990
    37.880
    0.2%
  • TLT.USA
    2.700
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.050
    -2%
  • TSTOPVRPM.CHIATL
    3.080
    0.050
    1.7%
  • TSTOPVRPM.DALLAX
    1.370
    -0.080
    -5.5%
  • TSTOPVRPM.LAXDAL
    2.950
    0.040
    1.4%
  • TSTOPVRPM.PHLCHI
    1.690
    -0.010
    -0.6%
  • TSTOPVRPM.LAXSEA
    3.130
    0.110
    3.6%
  • WAIT.USA
    120.000
    0.000
    0%
Less than TruckloadNewsTrucking

Exclusive: LTL carrier CFL addresses ‘false rumors’ it’s shutting down division

A source told Brennan a former CFL employee originated the rumors

Rumors started swirling on Friday that a Waco, Texas-based less-than-truckload carrier was shutting down its western division.

Central Freight Lines (CFL) President Michael Brennan was quick to respond that the rumors are “100 percent untrue.”  

“We are fully operational in our western division that contains nine facilities,” Brennan told FreightWaves. “I have no plans of reducing or shutting those facilities down.”

He admitted he received multiple calls on Friday from numerous third-party logistics companies and direct LTL competitors inquiring if the rumors were true — with offers to hire CFL employees.

Brennan said one source told him a former CFL employee who went to work for a direct competitor originated the rumors that the 95-year-old LTL carrier was eliminating its western operations. 

Recently, Brennan said the company had taken a different stance on its policy regarding volume loads as shippers struggled to find truckload carriers to haul their freight.

According to Brennan, the policy switch was necessary because as intermodal and full truckload markets tightened, CFL was receiving requests from shippers to move full truckloads.

“We were getting inundated with truckload volume, shippers hitting us with 20 to 30 pallets for a single pickup,” he said. “We have reduced that because we are a less-than-truckload company. 

“We have to make sure we don’t lock our system up with truckload and that we keep our less-than-truckload customers happy because that’s our business,” Brennan added.

$76 million expansion in the western market

The LTL carrier, owned by Jerry Moyes, former owner of Swift Transportation, recently invested around $76 million in brand-new facilities in the carrier’s western division, according to Brennan. 

“There’s no way Moyes would have invested this much of his own money if he had any other plans except to grow the western market and take on market share,” he said.

This week, CFL had all of its national account directors at the carrier’s headquarters in Waco to go over its 2021 budget and market strategy.

“At no point during our conversations did we ever discuss closing the West,” Brennan said. “We talked about taking on market share and looking at buying a company in northern California where we’re not at today.”

CFL wins lawsuit against Amazon

The Texas LTL carrier scored a legal victory against Amazon in late October 2019 after a jury awarded it $2.4 million against the e-commerce giant.

According to a FreightWaves report, CFL first began hauling less-than-truckload (LTL) freight for Amazon in 2011. But its relationship with Amazon started going south by 2016 as the e-commerce powerhouse “attempted to wield its economic power to force through billing and procedure changes that Central Freight never agreed to,” according to the carrier’s complaint.

CFL has 1,651 power units and 1,175 drivers, according to the Federal Motor Carrier Safety Administration SAFER website. Over the past 24 months, CFL trucks were inspected 1,339 times and 270 trucks were placed out of service, resulting in a 20.2% out-of-service rate, which is lower than the industry’s national average of around 20.65%, according to FMCSA data. 

CFL drivers were inspected 1,608 times and 31 were placed out of service in the same two-year period, resulting in a 1.9% out-of-service rate, below the national average of around 5.1%. The company has been involved in three fatal crashes, 40 injury crashes and 55 towaways over the past 24 months.

The company was founded by W.W. “Woody” Callan Sr. in 1925. 

Read more articles by FreightWaves Senior Editor Clarissa Hawes.

Shuttered California carrier files for bankruptcy
Texas trucking company closes its doors, sources say
Small-business truckers among those owed after Texas carrier files Chapter 11
Truckers owed thousands after Texas carrier files bankruptcy

Tags

Clarissa Hawes, Senior Editor, Investigations and Enterprise

Clarissa has covered all aspects of the trucking industry for 14 years. She is an award-winning journalist known for her investigative and business reporting. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. Clarissa lives in the Kansas City area with her family. If you have a news tip or story idea, send her an email to chawes@freightwaves.com.

2 Comments

  1. I seen driver’s say I’m going to sue to other driver’s in the driver’s lounge at the same company . saying you told me that your going to do something I’m going to use Ohio law and sue you.

  2. Terrible place to work as a driver, most of the time there is not even a truck to drive and when there is one it hasn’t had any kind of service. brand new trucks with 138 000 miles and not one mechanic has touched it bad bad bad run forest run from this company

Leave a Reply

Your email address will not be published. Required fields are marked *

Close