In The News
55Jevic Transportation Inc.
The trucking firm of Delanco announced on Monday, May 19, 2008 that it was shutting down operations after 27 years because of the rising costs of diesel and insurance.
Employing 1,500 with about 1,00 in Burlington County,, which makes this company one of the largest employers. They will deliver all freight that is already in the system before closing completely.
Director of marketing and communications said the company has been feeling the preasure of the economic downturn and has been thinning out positions for months.
Spokesperson for the American Trucking Association ,said that the trucking industry spent $112 billion on fuel in 2007, and on the way of spending $141.5 billion in 2008.
Diesel fuel prices have risen from $2.67 to $4.52 per gallon, since January 2007 onto today.
A letter to employees from Jevic management stated they have been looking for financing or other alternitives in order to continue operations but have not not been able to produce.
Empoyees said the shutdown was a surprise and seemed unaware of anything happening.
Jevic is owned by an affiliate of Sun Capital Partners, Inc., a leverage buyout and investment fund in Boca Raton, Florida.
A supervisor in the pricing department said the news was given to employees in a morning meeting. Many people had broken down into tears. The supervisor, an employee of 17 years also said no one can speak wrong of the company because it was a good company. Employees were treated and paid well.
There is also a brief history of the company in the Philadelphia Inquirer http://www.philly.com
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Comments
I've seen their trucks on the road. When is this going to end? HOW is this going to end?
Here we go--the domino effect of the price of oil is just beginning to kick in. I think there will be lots of changes to come--fasten yoour seat belts, folks. It's gonna be a bumpy ride.
You are not alone. We have similar news in Australia. We have a suburban town to Sydney 35 Kilometers away They have 15 small business shops close down in the last 10 weeks.
Hello Jeff...
The business is the proccess of closing as we speak. They are filling orders that have been submitted and that's it. They are no longer taking service orders.
It is such a sad story, and I can relate because the school where I work is also cutting back. Near where I used to live, the Dubuque Iowa school system is cutting back because their tax base has eroded due to foreclosures, which were due to job layoffs, which were due to high transportation costs, which were due to higher fuel prices, and the circle goes on.
Are we destined by our own foolishness and greed to become a third-world nation?
I certainly hope not, but the writing is on the wall.
solarshingles
Thank you for commenting
Marie
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solarshingles says:
3 months ago
Dear Scent, thank you for this very sad story. I cannot even imagine how this is going to effect their lives and the lives of their families.