New England Motor Freight

Last updated
New England Motor Freight, Inc.
Company type Private
Industry Freight transportation
Founded1918;106 years ago (1918)
Defunct2020 (2020)
FateTerminated operations due to bankruptcy
Headquarters
Elizabeth, New Jersey
,
United States
Key people
Myron P. "Mike" Shevell (chairman & CEO)
OwnersShevell Group
Websitenemf.com
Footnotes /references
[1]

New England Motor Freight, Inc. (NEMF) was a unionized less-than-truckload (LTL) and truckload freight carrier, based in Elizabeth, New Jersey. It was one of the largest LTL carriers in the US Northeast when it entered Chapter 11 bankruptcy in 2019 and subsequently shut down all operations in 2020. [2]

Contents

History

The origins of the company go back to 1918 when a small trucking company began hauling products for the National Biscuit Company (later known as Nabisco) and Fair Lawn Dairies in northern New Jersey. Fair Lawn was later acquired by Bergen County, New Jersey–based Farmland Dairies who also eventually bought the trucking company. At around the time of its acquisition, the carrier was renamed New England Motor Freight (NEMF). [1]

In 1977, Farmland sold NEMF to New Jersey trucking executive Myron "Mike" Shevell. [3] Shevell had started his career in trucking as vice president at the Apex Express trucking company in the 1950s and later operated and managed Associated Transport, which at one point was the United States' largest trucking company, [4] starting in 1974. Associated Transport entered bankruptcy in 1976 and a year later NEMF became part of the Shevell Group, of which Shevell was chairman. [1]

At the time of its acquisition, NEMF was facing significant competition in the Northeast and operated 55 trucks from five terminals. [5] But, over the decades following acquisition and the 1980 deregulation of trucking, NEMF grew substantially especially when compared to other unionized carriers of the time. It continued to provide services in the New York–New Jersey metropolitan area but eventually served as far as Chicago, Canada, and Puerto Rico. [1] In 1986, it bought Interstate Dress Carriers. [6]

Bankruptcy

On February 11, 2019, NEMF filed for Chapter 11 bankruptcy citing rising overhead costs and a shortage of drivers, officially closing its doors one year later. [7] According to the company, the decision to file for bankruptcy and wind down its operations came after two years of losses [8] and an unsuccessful effort to renegotiate credit agreements with its lenders. [9] Its bankruptcy was the largest in the transportation industry since the 2002 bankruptcy of Consolidated Freightways. [1]

In addition to NEMF, the bankruptcy included 10 other Shevell Group companies including NEMF subsidiaries transportation management and freight brokerage firm NEMF Logistics, air and ocean freight forwarder for Puerto Rico NEMF World Transport, and cross border freight service provider NEMF Canada which had served Ontario and Quebec. Additionally, the bankruptcy filings included Shevell Group companies South Brunswick, New Jersey-based dry van and flatbed carrier Eastern Freightways, third-party-logistics provider Carrier Industries Inc., and truckload freight brokerage firm Apex Logistics. [10] While most of these were liquidated, Eastern Freightways and Carrier Industries were acquired out of bankruptcy by Estes Express. [9]

Operations

At the time of its bankruptcy, NEMF was the 17th largest LTL carrier in the US in 2017 with revenues over US$400 million. [6] The company had 3,745 employees including over 1,300 drivers and operated approximately 10,000 pieces of equipment including 1,500 company-owned tractors, an additional 247 owner-operator tractors, and almost 5,600 trailers. It also had 40 terminals across the Northeast, Midwest, and Puerto Rico. [1]

Unlike most LTL carriers whose workers are unionized under the Teamsters Union, NEMF's union workers were mostly under the International Association of Machinists and Aerospace Workers (IAM). [8]

Controversies

Accusations of Mafia connections

Mike Shevell and NEMF were both accused of having connections to the American Mafia, according to an investigation conducted by the federal government. In a racketeering suit filed by the US Attorney in 1988 Shevell was accused of making Mafia payoffs and having an eleven-year corrupt relationship with Tony Provenzano, a Genovese family mobster and former union leader who was convicted of racketeering and murder. The matter was settled with no admission of wrongdoing. [11] [12]

Alleged inadequate termination notice

Following NEMF's bankruptcy, the company was sued by a group of approximately 350 employees claiming they had not received adequate notice of termination in violation of the federal WARN Act which requires 60 days notice of mass layoffs. [13] Employees also claimed they were owed additional wages and accrued vacation time. This resulted in the company increasing its termination package to employees to a total of US$15.7 million from an initial severance offering of US$13 million. Following the company's move to increase severance pay, the employees dropped their suit alleging WARN Act violations. [14] [15]

Related Research Articles

Caliber System Inc., known until 1996 as Roadway Services Inc., was a transportation holding company based in Akron, Ohio, United States. During its history, Caliber owned a number of logistics companies including Roadway Express, Viking Freight and Roadway Package System (RPS) among others. Roadway Express was spun off in 1995 and Caliber was acquired by FedEx in 1998 with subsidiaries becoming FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Global Logistics.

American Freightways Corp. (AF) was an American regional less than truckload (LTL) carrier based in Harrison, Arkansas. It was acquired by FedEx in 2001, renamed FedEx Freight East in 2002, and its operations were merged with FedEx's other LTL subsidiaries in 2010 to form FedEx Freight Inc.

Con-way, Inc. was an American multinational freight transportation and logistics company headquartered in Ann Arbor, Michigan, United States. With annual revenues of $5.5 billion, Con-way was the second largest less-than-truckload transport provider in North America, with additional operations for global contract logistics, managed transportation, truckload and freight brokerage. The company's services were sold through its primary operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide. These operating units provided less-than-truckload (LTL), full truckload and multimodal freight transportation, as well as logistics, warehousing and supply chain management services. Con-way, Inc. and its subsidiaries operated from more than 500 locations across North America and in 20 countries.

Consolidated Freightways (CF) was an American multinational less-than-truckload (LTL) freight service and logistics company founded on April 1, 1929, in Portland, Oregon, and later relocated to Vancouver, Washington. Affectionately known as "CornFlakes", Consolidated Freightways was also the founder of the Freightliner line of heavy trucks, now owned by Daimler Trucks. At its height, the company possessed over 350 terminals, employing more than 15,000 truck drivers, dock workers, dispatchers and management. Consolidated Freightways was once the nation's number one long-haul trucking company and the 3rd largest-ever US bankruptcy filing, ceasing business in 2002.

Estes Express Lines is a privately owned American freight transportation provider based in Richmond, Virginia. Founded in 1931 by W. W. Estes, the company is still owned and operated by the Estes family. Robey W. Estes, Jr., became the company’s president in 1990, then chairman and CEO in 2001. He was succeeded by his son Webb Estes as COO and President in 2023.

<span class="mw-page-title-main">Celadon Group</span> Former American truckload shipping company

Celadon Group, Inc. was a truckload shipping company located in Indianapolis, Indiana. It was one of the ten largest truckload carriers in North America and at its peak operated 4,000 trucks and owned an additional 11,000 trucks through Quality Equipment, its leasing division.

Roadway Express, Inc. was an American less than truckload (LTL) trucking company. Roadway Express and its holding company, Roadway Corporation, were acquired by logistics holding company Yellow Corporation in 2003, and the parent companies were merged to form Yellow Roadway Corporation, later renamed YRC Worldwide. In 2009, Roadway Express was merged with YRC's other national LTL carrier, Yellow Freight, to form YRC, Inc.

<span class="mw-page-title-main">Knight-Swift</span> American truckload transportation company

Knight-Swift Transportation Holdings Inc. is a publicly traded, American motor carrier holding company based in Phoenix, Arizona. It is the fourth largest trucking company in the United States. The company's primary subsidiaries are truckload carriers Knight Transportation, Swift Transportation, Midnite Express and, since July 2021, less than truckload (LTL) carrier AAA Cooper. In January 2022, the company expanded its LTL footprint with the acquisition of Midwest Motor Express. In July, 2023 Knight-Swift acquired truckload carrier US Xpress. In July 2024, Knight-Swift acquired less than truckload (LTL) carrier Dependable Highway Express from Dependable Supply Chain Services.

<span class="mw-page-title-main">TForce Freight</span> American trucking company formerly UPS Freight

TForce Freight, a subsidiary of TFI International, is an American less than truckload (LTL) freight carrier based in Richmond, Virginia. The company was founded in 1935 as Overnite Transportation, the name it used until 2006 when it was rebranded UPS Freight by new owner UPS. Its name changed to TForce Freight in 2021 when UPS sold the company to TFI.

<span class="mw-page-title-main">Reddaway (trucking company)</span> American trucking company based in Oregon

USF Reddaway Inc. was an American less than truckload (LTL) trucking company based in Tualatin, Oregon. Reddaway was a subsidiary of transportation and logistics holding company Yellow Corporation and operated in the Western United States as well as British Columbia, Alaska, and Hawaii.

<span class="mw-page-title-main">Saia</span> American freight company

Saia is an American less than truckload (LTL) trucking company, that originated in Houma, Louisiana, in 1924. With original operation occurring in Louisiana and Texas for the first fifty years, expansion came after 1980 when coverage began reaching into more states within the South. Further expansion happened through mergers with other companies, which allowed Saia to provide service for thirty six states. Saia ranks within the top ten of LTL carriers in the United States, with revenues of over $1.8 billion in 2020.

Pitt Ohio Express, LLC, stylized PITT OHIO, is a privately owned transportation and supply chain management company based in Pittsburgh, Pennsylvania that serves the Mid-Atlantic and Midwestern US. Pitt Ohio ranked 48th on Transport Topics Top 100 For-Hire list and 14th on its Top Less-Than-Truckload (LTL) Carriers list of US and Canadian freight carriers by revenue for 2021.

TST Solutions L.P. is a Canadian less than truckload (LTL) freight carrier located in Mississauga, Ontario, Canada. TST-CF offers nationwide Canadian service and partners with US-based LTL carrier Saia to provide international services to and from the United States. TST-CF Express is a subsidiary of TFI International, a Canadian transportation conglomerate and Canada's largest LTL business and trucking fleet. TST-CF Express was the result of the 2020 merger of two TFI subsidiaries: TST Overland Express and Canadian Freightways.

<span class="mw-page-title-main">Con-way Freight</span> Logistics company

Con-way Freight was a less-than-truckload (LTL) motor carrier headquartered in Ann Arbor, Michigan, utilizing a network of freight service centers to provide regional, inter-regional and transcontinental less-than-truckload freight services throughout North America. The business unit provided day-definite delivery service to manufacturing, industrial and retail customers. Con-way Freight was the largest division of Con-way, Inc. with 16,600 employees, more than 365 operating locations, 16,000 dock doors and 32,750 tractors and trailers. The company was founded by Consolidated Freightways (CF) of Portland, Oregon, as a non-union spinoff, for LTL hauling. In 2009, Con-way Freight reported revenues of over $2.6 billion. In 2015, Con-way Inc., including Con-way Freight and sibling company Con-way Truckload, was acquired by XPO, Inc., a primarily non-asset logistics company from Greenwich, Connecticut, in a deal worth $3.5 billion.

LME, Inc. was a less than truckload (LTL) carrier located in Minnesota which served ten states in the Midwestern US. LME, Inc. was founded in the early 2010s as a successor to Lakeville Motor Express to take over Lakeville's non-union regional freight business when its owners split this segment from their unionized business The unionized business remained with Lakeville which became a cartage agent for LME.

TFI International Inc. is a Canadian transport and logistics company based in Saint-Laurent, Quebec, a borough of Montreal. It operates primarily in Canada, the United States, and Mexico through 4 business segments: less than truckload (LTL), package and courier, logistics, and truckload. It has Canada's largest LTL business, largest trucking fleet, and in 2021 was ranked 6th in terms of revenue among both LTL and truckload North American carriers. Its trucking fleet consists of over 14,000 company-owned power units, nearly 10,000 owner-operator tractors, nearly 50,000 trailers and over 200 straight trucks.

<span class="mw-page-title-main">XPO, Inc.</span> American transportation company

XPO, Inc. is an American transportation company that conducts less-than-truckload shipping in North America. The company has headquarters in Greenwich, Connecticut, and has 564 locations globally.

<span class="mw-page-title-main">Old Dominion Freight Line</span> American transportation company

Old Dominion Freight Line, Inc. (ODFL) is an American regional, inter-regional and national less than truckload shipping (LTL) company. In addition to its core LTL services, the company offers expedited, logistics and household moving services.

<span class="mw-page-title-main">Central Freight Lines</span> Former American LTL freight trucking company

Central Freight Lines Inc. (CFL) was an American regional less-than-truckload (LTL) company headquartered in Waco, Texas and serving the Southeastern and Southwestern United States. For much of its history it was the largest and longest tenured freight carrier in Texas and in 2021 ranked 21st on Transport Topics top LTL carriers in the US as of 2021 with estimated revenues of US$256 million.

<span class="mw-page-title-main">ArcBest</span> American transportation holding company

ArcBest Corporation is an American holding company for truckload and less-than-truckload (LTL) freight, freight brokerage, household good moving, and transportation management companies. Historically, the company also owned furniture, banking, and other diverse subsidiaries. The company ranked fifteenth among for-hire carriers in the US for 2020 according to industry journal Transport Topics.

References

  1. 1 2 3 4 5 6 Mall, Scott (June 1, 2021). "FreightWaves Haul of Fame: NEMF's 2019 bankruptcy shocked LTL sector". FreightWaves. Retrieved November 1, 2021.
  2. ↑ Solomon, Mark (2019-02-12). "LTL carrier New England Motor Freight to shut down after filing for bankruptcy protection". FreightWaves. Retrieved 2024-05-28.
  3. ↑ Bendel, John (2019-02-13). "NEMF, a big carrier with a colorful history, goes bust". Land Line. Retrieved 2024-12-19.
  4. ↑ Ronan, Dan (2022-01-25). "N.J. Trucking Leader Myron 'Mike' Shevell Dies at 87". Transport Topics. Retrieved 2024-12-19.
  5. ↑ "About NEMF". New England Motor Freight. Archived from the original on March 13, 2020. Retrieved November 1, 2021.
  6. 1 2 Hedes, Jarrad (April 18, 2020). "Life after NEMF: Former trucking employees move on to different roles". Times News. Retrieved November 1, 2021.
  7. ↑ Bearth, Daniel P. (February 12, 2020). "New England Motor Freight Files for Bankruptcy, Plans to Wind Down Trucking Operations". Transport Topics. Retrieved November 1, 2021.
  8. 1 2 Schulz, John (February 11, 2019). "In stunning development, NEMF and 10 related subsidiaries declare bankruptcy". Logistics Management. Retrieved November 1, 2021.
  9. 1 2 Corrigan, Tom; Brickley, Peg (April 26, 2019). "Estes Express to Buy NEMF Affiliates for $15 Million". Wall Street Journal. Retrieved November 1, 2021.
  10. ↑ Stinson, Jim (March 14, 2019). "New England Motor Freight Increases Severance Packages for Employees". Transport Topics. Retrieved November 1, 2021.
  11. ↑ Barrett, Wayne (October 13, 1998). "Secret Agent Man: Blakeman raises dirty dollars in stealth campaign against McCall". Village Voice.
  12. ↑ Dovkants, Keith (November 7, 2007). "Father of Macca's millionairess has faced Mafia probe". Evening Standard. London (UK). p. 1.
  13. ↑ Harris, Jon (2019-02-20). "New England Motor Freight did not provide employees with proper notice before closing, lawsuit claims". The Morning Call. Retrieved 2024-06-14.
  14. ↑ "New England Motor Freight workers drop class-action suit after company grants additional severance". FreightWaves. March 15, 2019. Retrieved November 1, 2021.
  15. ↑ Stinson, Jim (2019-03-14). "New England Motor Freight Increases Severance Packages for Employees". Transport Topics. Retrieved 2024-06-14.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.