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  • DATVF.LAXDAL
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  • DATVF.VEU
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  • ITVI.USA
    9,815.630
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  • OTRI.USA
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  • OTVI.USA
    9,813.900
    -2.100
    0%
  • TLT.USA
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  • WAIT.USA
    150.000
    0.000
    0%
  • DATVF.SEALAX
    1.048
    0.090
    9.4%
  • DATVF.VSU
    1.176
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  • DATVF.VWU
    1.521
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    3.2%
  • DATVF.LAXSEA
    1.994
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  • DATVF.CHIATL
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  • DATVF.ATLPHL
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  • DATVF.PHLCHI
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  • DATVF.LAXDAL
    1.483
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  • DATVF.VNU
    1.393
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  • DATVF.DALLAX
    0.869
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  • DATVF.VEU
    1.482
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  • ITVI.USA
    9,815.630
    -4.920
    -0.1%
  • OTRI.USA
    4.730
    0.030
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  • OTVI.USA
    9,813.900
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  • TLT.USA
    2.450
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  • WAIT.USA
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NewsTrucking

Indiana trucking company to shut down after insurance costs double, rates fall (with video)

An Indiana-based trucking company will lay off all its drivers and close its doors for good later this month.

A.L.A. Trucking’s 41 drivers and 15 other employees will lose their jobs in the layoff, owner Alan Adams confirmed late Wednesday night.

Adams blamed the company’s rising insurance costs for its ultimate demise, noting that insurance rates at the company jumped to more than $700,000 this year from less than $340,000 last year. He said the jump was due to factors beyond the company’s control, including the way the Federal Motor Carrier Safety Administration (FMCSA) handles Compliance, Safety, Accountability (CSA) scores.

“I didn’t do anything wrong with the company. It’s the way the government has this new grading system that is affecting a lot of companies,” Adams said. “If there’s a situation on the road where a car comes off the on-ramp and bumps into a tractor trailer, until that claim is settled, the insurance company charges a company with that claim.”

While insurance rates may have been what ultimately pushed the company over the ledge, the shutdown comes amid a general slowdown throughout the freight market as a whole. Adams admitted that falling freight rates have taken a toll on the company.

“These rates are ridiculous,” Adams said. “The shippers and receivers are adding to it.”

He said rates have dropped so low, in fact, that the company cannot even afford to haul freight anymore.

Adams lamented the overall state of the trucking industry today and said the shutdown will hit him hard personally, as well as professionally.

“At 61 years old, we put every dime into this,” he said. “I don’t want anything to do with the trucking industry anymore, but it’s all I know. I have to go back to it as a driver. Not as an owner, but I have to go back as a driver and put up with the bull.”

The company’s circumstances have changed dramatically in the last two years. A.L.A. Trucking broke ground on a new headquarters in 2017, setting up shop at a former lumber yard at a cost of nearly $1.3 million, according to Adams.

The company, which was founded in 1988, received a six-year tax abatement which would save an estimated $118,000 upon building its new headquarters. At the time, Adams planned to hire 20 additional drivers to complement its existing 33 drivers, at an additional annual salary cost of $1.1 million.

A.L.A. Trucking is expected to haul its last load by Wednesday, June 26.

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Ashley Coker, Editor

Ashley is interested in everything that moves, especially trucks and planes. She covers air cargo, trucking and sponsored content. She studied journalism at Middle Tennessee State University and worked as an editor and reporter at two daily newspapers before joining FreightWaves. Ashley spends her free time at the dog park with her beagle, Ruth, or scouring the internet for last minute flight deals.

29 Comments

  1. Joey dot is cruel last year I got stop and put out of service 10 hours for a mistake of 15 minutes .st the scale no rest rooms my ac was broke it was a 100 out side in directions sun like my dog almost die ..I had to go rest room so bad they told me walk 2 miles there was a Mcdonald’s.. I almost got arrested I had to bring my little dog in with me and no dogs are allowed he was suffering really badd because it was too hot for a long head dog..so you people who think dot is so sweet think again ..

  2. Again there is no right formula when you have ata and mega carriers working together with the computers in the truck all the extra cost and by the way all the truck movements are being sold to the highest bidder so mega carriers by that information they can use that to. Under bid you this is checkers this is chess

    1. Insurance rates are up. I know two independents that have had their rated doubled. Clear MVR and CSA. Another received notice he is going to get an in Reade, but not quite as much. Rates were already high. Having to pay double for no apparent good reason makes no sense. Rates are down for most with whom I have spoken. Some of the lower rates could be due to the flooding and weather issues. Maybe independents and smaller carrier’s need to start knocking on doors and deal directly with shippers instead of using brokers.

  3. So right, the company I work for here in TX had to get audited. Too many warning for no washer fluid, which is not against the law. Jug could be filled, but if the sprayers are plugged or the usual malfunction and it doesn’t spray, it gets counted as no fluid. DOT and insurance are conspiring together.

    1. Yeah, I bet it was for windshield washer fluid. Sure. Of course you don’t identify your company so we can check the CSA scores ourselves. Maybe too many inoperable washers indicated that maybe the drivers were not doing proper pre-trips or that the company was not maintaining the equipment. But trust me, they had so,e suspicion about something. You are correct that sprayers are not a DOT thing, but it was the trend that got their attention.

  4. This is a classic situation where the owners take their eye off of compliance and safety and fail to have solid training and someone who knows how to run a fleet. This is a small fleet too, my guess is the story will get more complete if the drivers came forward, or did they just not put money into the company and let all of the vehicles become run down? you can Data Q everything else

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