Freight Distress Report: Supply chain providers cut more than 1,200 jobs

Temco Logistics disclosed another 223 layoffs across three states as the final-mile provider discontinues flatbed delivery operations nationwide. The company plans to cut 92 positions in Lithonia, Georgia; 71 in West Dallas; and 60 in Hialeah, Florida.

Freight Handlers Inc., commonly known as FHI, filed a Worker Adjustment and Retraining Notification notice covering 168 employees at five Publix Super Markets distribution centers in Florida. The permanent layoffs follow the loss of FHI’s third-party unloading contract, according to the notice.

The latest filings also include permanent closures or workforce reductions at facilities operated by GEODIS, CJ Logistics America, GXO Logistics, Niagara Bottling and International Paper.

Logistics and manufacturing layoffs announced July 10-24

The announcements do not necessarily mean all 1,222 employees have already been separated. Several notices list effective dates in September, while Amazon’s closure is planned for Sept. 17.

International Paper said its Carrollton, Texas, packaging plant will permanently close around Sept. 14, affecting 45 hourly workers and 19 salaried employees. The company attributed the move to an ongoing network optimization strategy under CEO Andy Silvernail.

GEODIS plans to close its facility at 1950 Palmetto Ave. in Redlands, California, eliminating 81 positions beginning Sept. 3. GXO’s San Bernardino reductions are scheduled for Sept. 18, while Niagara Bottling’s Woodridge, Illinois, filing covers 57 employees affected by a plant closure.

Related: Freight Distress Report: Carrier, logistics closures erase over 245 jobs

10 companies seek Chapter 11 protection

The period also produced Chapter 11 filings from seven trucking, courier or logistics businesses and three freight-dependent manufacturers and distributors.

Eagle Logistics LLC, a Wayne, New Jersey-based general freight carrier, filed for protection July 21 with liabilities estimated between $1 million and $10 million and assets of no more than $50,000.

The filing is notable because Eagle Logistics is substantially larger than the other carriers in the bankruptcy group. The company was listed with 151 power units and 242 drivers and operated a dedicated U.S. Postal Service team route between Jacksonville, Florida, and Jersey City, New Jersey.

The source material does not state what prompted Eagle Logistics to seek court protection.

Power Lane Logistics Distribution & Warehousing Inc. filed Chapter 11 in California on July 22. The Tracy-based warehousing and transportation provider listed both assets and liabilities between $1 million and $10 million. Its federal operating authority was listed as not authorized, although its USDOT registration remained active.

Other transportation-related filings included:

• Royal Express Delivery Inc., a Simi Valley, California-based courier that historically operated 18 vehicles and employed 22 drivers.
• Rambo Transport Inc., a Bakersfield, California-based carrier operating five power units and employing eight drivers.
• C-M Transport LLC, a Vassar, Michigan-based livestock and general freight hauler with five power units and four drivers.
• Redefined Transportation Inc., a Long Beach, California-based intermodal drayage carrier operating 17 tractors and 28 chassis.
• TeamSeven Logistics/Chosen Spirit, a Green Bay, Wisconsin-based carrier listed with one power unit and one driver.

Court filings generally did not identify the specific business conditions that caused the companies to seek bankruptcy protection. Safety statistics, fleet counts or prior authority interruptions contained in carrier databases provide operational context but do not establish the reason for the bankruptcy cases.

Freight-dependent distributors and manufacturers restructure

Three companies outside the core trucking sector also filed Chapter 11 petitions.

Tradavo Inc., a Lakewood, Colorado-based wholesale supplier serving campground and hospitality retailers, filed July 16. The company reported assets between $100,000 and $500,000 and liabilities between $1 million and $10 million.

Collabow Inc., a Los Angeles-based women’s apparel manufacturer and wholesaler, filed July 14 with both assets and liabilities estimated between $1 million and $10 million. The company was listed with approximately 45 to 50 full-time employees and used wholesale and e-commerce distribution channels.

World Food LLC, a Florida perishable prepared-food manufacturer, filed July 13 with assets under $50,000 and liabilities estimated between $500,000 and $1 million. The provided court summary did not state a reason for the filing. The company was previously estimated to employ between 160 and 200 people.

Bankruptcy filings

Why it matters: The latest notices show freight-sector distress extending beyond small trucking companies, with major warehouse networks, final-mile providers and freight-dependent manufacturers closing facilities or restructuring operations while more than 1,200 jobs face elimination.