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TRUCKING ANALYSIS * USA - Denial or "deer in the headlights" inexperience the reason for a "Broken Arrow"?
On December 22, Arrow Trucking of Tulsa, OK shut down ... The story of Arrow Truck Lines Failure should become a model "Case Study" of what happens when inexperience and denial are at play
New York,NY,USA -GLGroup, by Expert Contributor -January 4, 2010: ... It was swift - ugly, public and for many without warning. Paychecks issued the Friday before bounced. Tow trucks moved in quickly to pull parked rigs from the yard to protect creditors collateral. Fuel cards shutoff when the supplier realized that they would never be paid. The company phone system answered with a message to drivers to turn their rigs into the closest truck dealer to get a bus ticket home... A combination of denial - and a large dose of inexperience led to the rapid and very public shutdown of the 9th largest flat bed carrier - and the 99th largest for hire fleet in the US. ... And with no cash in the bank, and no tractors to haul the freight, Arrow closed its doors... Will we really know what happened? Eventually - but by the time it is all done nobody will care. What happened is not unprecedented - sudden failures have happened in the past, and they will happen again... The word of caution is that shippers and lenders need to be looking at the financial health of the carriers that they are using or supporting. There are many shippers that had materials on the move that had to play a rough game of "Where's Waldo" to find their freight. The choice to use Arrow - which may have been the choice of a "broker" who shopped the load to the lowest cost carrier - may have cost those shippers future business with the customers left hanging - waiting for the load sitting in a yard or lot somewhere...
Labels: trucking industry analysis USA
posted by Unknown @ 9:49 AM
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