One crash is all it took. Carney Trucking Company, a Gilbertown, Alabama-based flatbed carrier, has shut down, citing a spike in its insurance rates.
“We had a major accident last year,” David Carney, one of the family owned business’ owners, told FreightWaves. “Once we got the insurance quote, we tried to make it work, but we just couldn’t.”
The fleet had about 25 drivers and had been in business since 1983. Carney said that most of the drivers at this point have found other jobs. He doesn’t know what his future holds – he’s been in the business for 27 years – but his brother Robbie may continue in the industry, David Carney said.
July 31, 2019, was the last day of operation for the fleet.
According to the Federal Motor Carrier Safety Administration’s (FMCSA) SAFER Web website, the fleet had a fatal crash in the past 24 months and three additional U.S. Department of Transportation reportable crashes in the past two years. In the past 24 months, its vehicles had been inspected 70 times with a 31.4 percent out-of-service rate versus a national average of 20.72 percent. A total of 109 driver inspections had occurred in that timeframe with a 2.8 percent out-of-service rate, below the national average of 5.51 percent.
Carney said the drivers “got all the vacation [pay] and anything else we owed them.” There was also some additional pay provided, he added.
FMCSA said the fleet had 28 registered vehicles that covered 2.1 million miles in 2017.
Trucking shutdowns have spiked this year, and insurance is just one cause. Indiana-based A.L.A. Trucking shut down in early June and company owner Alan Adams blamed the FMCSA’s scoring system for fleets that caused a spike in insurance premiums.
“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 told FreightWaves. “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.”
Adams said insurance for his 41-driver company climbed from $340,000 to more than $700,000 in one year.
Other companies have cited low freight rates, lack of freight and other reasons for their shutdown. Just last week, Schneider National announced it was shutting down its First to Final Mile business due to a lack of profitability. That shutdown put nearly 800 drivers out of work.
Also on July 30, Terrill Transportation of Livermore, California, ceased operations. That fleet had 30 trucks and 36 company drivers as well as 12 owner-operators.
In addition to Schneider’s announcement last week, three of the largest closures so far in 2019 have been New England Motor Freight, Falcon and LME.
LME was a 400-truck less-than-truckload (LTL) carrier based in Minnesota. LME’s shutdown may have been in part due to a National Labor Relations Board dispute related to Lakeville Motor Express, a carrier that shut down in 2016. The Board called LME the “alter ego” of Lakeville.
Falcon’s shutdown was tied to alleged mismanagement, according to former executives of the company. Those executives told FreightWaves the company was struggling to meet payroll even after the sale to a private equity company.
New England Motor Freight’s shutdown in February shook the Northeast LTL market. With roots going back 100 years, the nation’s 19th-largest LTL carrier with more than 1,300 drivers had struggled financially for some time, but a shutdown was not expected. But on February 12, the company concluded that after two years of losses and the combination of high labor costs and a “severe” driver shortage made it unsustainable to continue as a going concern.
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Kevin Samuel
I have a small logging business with 2 trucks and my insurance has more than doubled over the last two years. If it continues, I will no longer be able to afford the second truck. Loggers are loosing money due to low prices for timber and can’t continue to pay higher and higher freight charges. This is going to hurt the entire industry.
Jimmy Dool
Sad thing about it is lumber an building costs keep going up an Dealer keep saying it the cost of freight but you never see it in your pocket. Go figure you keep putting people like transportation services an contractors in millions $ Homes while Truck drivers are living in RV or campers. Learned to say no can’t do it
gary George
No shit I’m an o/o & live in an RV lol it happened..
David holshouser
The CSA and e logs are doing exactly what the mega carriers and the AntiTruckingAssociation have been shooting for all along kill all the little guys.
TJ Aubuchon
I get sick and tired of hearing about the driver shortage. Who else learn way back in high school of this little thing called supply and demand. If you can’t find good paying freight it’s because someone is hauling it cheap. It’s sure not because they can’t find someone to haul it. I believe when I took my CDL test years ago you had to be able to speak and read English. When the government buy’s them a truck and they don’t have to pay taxes for 5 years how can you complete. I’m not nocking them, just the system.
Jimmy Wells
Another one bites the dust. The megas are the leaders of groups like the ATA that pay Congress to pass laws to smash out the small independents. This is a win/win for the Feds because they can control the entire country’s transportation system with ease to further their tyrannical goals that began in the 1860s AND the megas get to remove 90 percent of their competition. If you think you can get by with running only intrastate and service local needs only you’ll be sadly disappointed there too because all too many states are/have adopted the Feds very high insurance requirements. The days of outlaw transportation will be rising significantly as we approach our final days as the USA. The next regime is currently in the shadows of our existing government waiting to take over the reigns. Are YOU ready?!
Jim Finan
Sounds like a safer highway with them off the road.
David holshouser
Just so you know truck involved accidents are up since e logs started why because the old hands are getting out and the learning curve for the new ones is steeper than it’s ever been
Harry Paul Headley
This is all the lobbyists the people who stand against Donald Trump who’s been trying to deal with the corrupt country that we live in the corrupt politicians to crop insurance companies the corrupt truck manufacturers the corrupt dealerships to corrupt Brokers that’s corrupt businesses out here and most and most importantly the big trucking company JB Hunt Schneider these huge trucking companies who are more corrupt than anything in the history of anything I have ever seen in trucking been out here 32 years defraud the violation of constitutional civil rights of freedom are show and bearable I’ve never seen nothing like it it’s almost as bad as some of the courts in Pennsylvania look how can anyone who’s making 3 for $5,000 a week pay a driver workman’s comp in short $2,000 a month for insurance on a driver that’s what they have to pay it should be based on a driver that’s good driver for the whole company if that driver made that incident it should be on that driver and be solely on that truck driver if in fact he’s at fault and he cannot be legally no accident can be charged your truck driver because if four wheelers are not properly trained to understand what trucks can do and can’t do then it’s reckless endangerment on the Department of Transportation federal department of motor transportation is responsible for not educating four wheelers to teach them how to drive around big truck so how can you blame big trucks on a four-wheeler slammed his brakes on in front of them so here we go train your truck drivers properly stop trying to make big money congressman and Senators that’s who’s trying to get rich here big corporations it needs to be dealt with Trump make America great
Mike Sallah
I don’t know whether Trump is making America great again or He is part of the people you are complaining about but I agree with 99% of the things you are saying here
Tyrone
Some good points but trust and believe Trump is not in the Oval office to make our lives better.he is a crooked businessman and crooked politician and big-time liar and hate monger
Tim kerns
You are barking up the wrong tree. Toxic is the problem and not one thing is going to get better with him in the W.H. Ask any of your full time farmers if it has been better or worse the last two years. Lack of morals and only looking out for the family business is killing us all. Take a stand and reflect
Jimmy Dool
Tim I live in a small farming town. Own a small one myself. All these Farmers around here is doing better than they have in years.
Mack Mald
Trump cares nothing for you are any driver.
Jay Stewart
Between the regulations and insurance, rates are going to be driven through the roof! And still we will be trucking for a slim profit. My insurance for 4 trucks went to $43000.00. Luckily I was able to change companies and save $15000.00. When my old company offered to match those numbers I told them no, they had to beat the new price if they wanted my business! They said no. This is a way for the government to step in and socialize the trucking industry. When the freight is sitting on the docks, not getting hauled, the economy will grind to a halt! Mark my words.
Michael DeVos
Your absolutely correct I believe that is what government is trying to do. It is easier for government to control 5 or 6 huge companies then thousands of small ones.
Rey
Absolutely I agreed with you maybe we can all find a way to unit and cease work for a week, let the shopping hold on, all shelves empty, then they will know not to mess with truckers
Manny
So then who are you after the government or the people? I understand the frustration, the anger and the bullshit *THE GOVERNMENT ” does but think about in the end who is the one that suffers ? The driver’s, the family’s, the smaller companies, not “THE GOVERNMENT ” it does suck ass but it is just one more thing to truthfully say you the small business owner stepped up when the “GOVERNMENT ” wouldn’t be proud of what you do “FUCK THE GOVERNMENT “
Mike Sallah
Absolutely true. Going through the same issue now
Jason Miller
Carney Trucking Company has a history of poor safety performance based on their SMS scores (https://ai.fmcsa.dot.gov/SMS/Carrier/234228/CompleteProfile.aspx). For example, your mega carriers like Maverick Transportation have a “BASIC” score of ~0.10 on Hours-of-Service Compliance, which corresponds to receiving essentially 0.1 violation points per inspection. Maverick similarily has an Unsafe Driving BASIC of ~1.44 [https://ai.fmcsa.dot.gov/SMS/Carrier/178538/CompleteProfile.aspx]. J.B. Hunt has similar performance [https://ai.fmcsa.dot.gov/SMS/Carrier/80806/CompleteProfile.aspx]. In contrast, Carney had an Unsafe Driving BASIC ranging above 5.0 since June 2017; similarly, its HOS Compliance BASIC was > 0.50 during that time and was above 1 in December 2017. This is simply the case of an insurance company running numbers and adjusting rates based on a history of poor safety compliance.