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Last-mile provider lays off more than 300 in Texas

Fusion Logistics says job cuts caused by increased insurance costs

Miami-based Fusion Logistics is a third-party logistics company offering final-mile supply chain solutions. (Photo: Fusion Logistics)

Fusion Logistics Inc. recently laid off 303 employees and permanently closed several Texas facilities, according to a notice sent to state officials Monday. 

The affected employees worked at locations in Houston, as well as the cities of Farmers Branch, Garland, Coppell and Fort Worth. The facilities will close permanently as a result of the layoffs.

Officials said the job cuts were “due to unforeseeable circumstances involving an unexpectedly large increase in insurance premiums,” according to documents filed with the Texas Workforce Commission (TWC).

The letter also cited a declined request for additional capital to cover losses. All of the affected Fusion employees were laid off July 12. 

The layoff notices were filed with TWC by PEI Ohio, which provided payroll, insurance and other administrative services to Fusion Logistics.

Miami-based Fusion Logistics is a third-party logistics company offering final-mile supply chain solutions. The company has 210 facilities across 49 states.

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  1. Mike

    And it begins… 2008 part 2… The lines of credit are being cut as I type now, just as they were in 2008. And we all know insurance rates have been and will continue to rise to the point that few will be able to afford even the basic liability policies, and fewer insurance companies are even underwriting new contracts, as they work their way out of the transportation industry. Then the IC policies coming down the pike… That could possibly destroy the entire transportation industry if allowed to pass, or destroy the country, JB, Swift and Schneider cannot handle all of the freight, no matter what the ATA believes.

    1. Stephen Webster

      In Ontario Canada between August of 2019and July of 2020 o er 10,000powrr units and buses were parked and many scraped because of the disaster in the Ont private insurance companies. Many sick and injured truck drivers like myself ended up in homeless shelters or on the street. We need a complete overhaul of both the insurance companies and offer a govt options for insurance both for liability insurance and medical care for injured truck drivers. We also need minimum freight and wage rates. In Ontario Canada the homeless shelters are now refusing lower income essential workers and sick cross border truck drivers because lack of funding by the Ont gov.. We need to make companies like Amazon and Walmart cover health Care and housing costs of their sick or injured workers

  2. DT

    i thought last mile was where all the money was being made and where all the vc money was going. thats what the news always seems to be when i get a chance to read it

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact [email protected]