Major Trucker Jevic Shuts Down

May 23, 2008
High fuel costs, an economic downturn, increasing insurance costs and tightening credit markets are cited as causes for going out of business.

Jevic and Saia Inc. were spun off from Yellow Freight and co-existed under an umbrella holding company named SCS Transportation. Eventually SCS sold Jevic for $51 million to Sun Financial Partners, retaining Saia, which has experienced substantial growth. At the time of the splitting off of Jevic from Saia, then-chairman and CEO of SCS, Bert Trucksess, was quoted as saying that, "Jevic historically has had performance challenges, and so they're no longer going to be part of our company, and we'll be able to focus all our resourceson Saia, which has been a consistently strong performer."

Jevic has struggled in a tough competitive market. It offered specialized less-than-truckload (LTL) transportation services and selected truckload (TL) and time-definite services with delivery capability throughout the contiguous 48 states and Canada. Founded in 1981, the carrier offered integrated customer solutions, including direct-to-customer deliveries, multi-shipper order consolidation for inbound supplies, and express and time-definite deliveries. Jevic's focused on loads between 1,000 to 30,000 pounds (overlapping both the LTL and TL markets), providing shippers with an alternative to traditional LTL and TL carriers that may have strict load requirements.

In a letter to customers announcing the closing, David Gorman, the company’s CEO, explained that Jevic, would continue operating to deliver all freight within its system prior to closing and would continue to provide Customer Service during the wind down period at 888-Go-Jevic. “The Jevic website will remain active and will be updated during the period as well and that should be your primary point of contact for tracing and needed documentation,” he explained.

“We greatly appreciate the loyalty of our many Jevic customers,” continued Gorman. “It has been our pleasure to provide solutions to your transportation needs over these many years. We are committed to providing the prompt delivery of your shipments in our system and professional customer service for all your needs during this process. Thank you again.”

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