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Midwest Transport Inc. (MTI) Closes its doors, thousands effected

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Midwest Transport Inc. (MTI), a trucking company based in Illinois and contracted with the U.S. Postal Service, is closing down. Over 650 employees, including more than 480 drivers, were notified of the shutdown without a formal explanation. MTI, founded in 1980, had key terminals across several states and a fleet of 428 trucks. Safety inspections revealed a higher-than-average out-of-service rate for their trucks, and the company had recent compliance reviews but did not officially announce the closure in any states where it operated.

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Midwest Transport Inc. (MTI), a trucking company based in Robinson, Illinois, and a major contractor for the U.S. Postal Service, is shutting down its operations, affecting over 650 employees, including more than 480 truck drivers. Employees were informed of the closure through phone calls from regional managers, but MTI has not issued a public statement explaining the reasons behind the decision.

An email obtained by FreightWaves indicated that MTI plans to complete all scheduled postal trips by Sunday, September 8, and that drivers should follow instructions from their load planners. Terminal and office staff were told they would receive updates as the company progresses through the shutdown.

Founded in 1980, MTI operated several key terminals in locations including Greenup, Illinois; Harmony, Pennsylvania; Memphis, Tennessee; and Tampa and Jacksonville, Florida. The company had a fleet of 428 trucks and 480 drivers, as reported by the Federal Motor Carrier Safety Administration (FMCSA). Over the past 24 months, MTI’s trucks were inspected 244 times, with 65 trucks being placed out of service, resulting in a 27% out-of-service rate, which is higher than the industry average of 22%.

However, the drivers themselves had a better record, with 564 inspections and only 16 drivers being placed out of service, resulting in a nearly 3% out-of-service rate, which is significantly lower than the industry average of 7%. Despite these statistics, MTI had reported 21 injuries and 42 vehicles needing to be towed over the past two years.

The FMCSA’s SAFER database indicated that MTI was cited for violations related to controlled substances, alcohol, and driver fitness. The company underwent two compliance reviews in July but still had active operating authorities at the time of the closure announcement.

A former MTI driver expressed surprise over the closure, noting that despite ongoing postal contracts across the U.S., there had been recent pushes from the company for drivers to certify their log books, watch their speed, and improve on-time performance. The driver speculated that even the U.S. Postal Service might be unaware of the sudden shutdown, potentially leaving mail undelivered on Monday.

A spokesperson for the U.S. Postal Service did not respond to requests for comments on the closure.

How This Affects You: Truck Drivers

For truck drivers, the sudden closure of MTI highlights the instability that can exist in the industry, even with long-standing companies. If you were a driver at MTI, this abrupt shutdown means an immediate loss of employment and potential challenges in quickly finding a new job, especially with specialized contracts like those with the U.S. Postal Service. Drivers who were part of MTI had been performing well compared to industry averages, so maintaining a good driving record and being proactive about certifications and safety practices can help in finding new opportunities.

For those still working in trucking, it’s important to keep an eye on your company’s financial health and operational practices. Understanding the importance of compliance and safety standards is crucial, as these can be indicators of a company’s overall stability. Always be prepared for changes in the industry by keeping your skills updated and staying informed about the companies you work for.

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#TruckingIndustry #MTIClosure #MidwestTransport #TruckDrivers #PostalService #Logistics #TruckingSafety #JobLoss #ComplianceIssues #USPSContracts #FreightNews

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Jury Says Wabash Owes $462 Million in Fatal Crash Case

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A St. Louis jury awarded $462 million in damages against Wabash National Corp., a trailer manufacturer, for its role in the deaths of two men who died in a 2019 crash when their car went underneath a Wabash trailer. The jury determined that Wabash failed to install safer trailers for over 30 years. Wabash is reviewing its legal options and argues that the trailer met all existing safety standards at the time of manufacturing.

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A St. Louis jury has ruled that Wabash National Corp., a trailer manufacturer, must pay $462 million in damages related to a 2019 crash that resulted in the deaths of two men, Taron Tailor and Nicholas Perkins. The crash occurred when their car collided with the rear of a Wabash-manufactured trailer, and the rear impact guard failed, allowing the car to slide under the trailer. Each family received $6 million in compensatory damages, and an additional $450 million was awarded in punitive damages, which the plaintiffs argue represents the amount Wabash saved by not upgrading to safer trailer designs over three decades.

Wabash National, headquartered in Lafayette, Indiana, responded to the verdict by stating that the trailer involved in the crash was manufactured in 2004 and met all regulatory standards at the time. They disagree with the jury’s decision, arguing that no existing rear impact guard or safety technology would have changed the outcome of the crash. Wabash also pointed out that evidence, including the fact that the driver’s blood alcohol level was above the legal limit and that neither the driver nor the passenger was wearing seat belts, was not presented to the jury.

The case has drawn attention to the broader issue of underride crashes, where a smaller vehicle slides under a truck or trailer, often resulting in severe injuries or fatalities. The plaintiff’s legal team argued that Wabash never conducted effective crash tests on their two-post impact guards and chose not to upgrade to safer, modern four-post designs to save money. They also criticized the existing federal safety standards for underride guards as inadequate and outdated.

This verdict could have significant implications for the trucking industry, which has historically resisted stricter regulations on impact guards. Advocates for crash victims are hopeful that the ruling will prompt federal regulators to enforce more robust safety standards for underride guards, which they argue are necessary to protect road users.

Wabash is currently evaluating its legal options and maintains confidence in the safety and quality of its products. The company has stated that this ruling will not deter them from continuing to provide trailers that contribute to road safety.

How This Affects You: Truck Drivers

If you’re a truck driver, this case highlights the importance of trailer safety and the ongoing discussions around underride guards. The ruling against Wabash could lead to stricter regulations for trailer manufacturers, including potential updates to the requirements for underride guards on trailers. As a driver, this could impact the type of equipment you use, and it may also increase the safety measures on the roads.

For those in the industry, staying informed about changes in safety regulations and equipment standards is crucial. Upgraded underride guards could prevent tragic accidents and improve overall road safety for all drivers. As discussions around trailer safety continue, it’s important for truck drivers and companies to prioritize compliance with the latest safety standards to minimize risks and liabilities.

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#WabashNational #TrailerSafety #UnderrideGuards #TruckingIndustry #RoadSafety #LegalCase #TruckAccidents #SafetyStandards #JuryVerdict #TruckingNews

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Diesel Price Drops 3.7¢ to $3.651 a Gallon

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The U.S. national average diesel price dropped by 3.7 cents to $3.651 per gallon, marking the seventh consecutive week of decline. Since mid-July, diesel prices have fallen by 21.4 cents. Year-over-year, the price is down by 82.4 cents, providing some relief to the trucking and logistics industries. The most significant drops occurred in the Rocky Mountain and West Coast less California subregions.

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Diesel prices in the U.S. have continued to fall, with the national average dropping by 3.7 cents to $3.651 per gallon, according to the latest data from the Energy Information Administration (EIA). This marks the seventh week in a row that diesel prices have declined, with a total reduction of 21.4 cents since mid-July. Compared to this time last year, the price is down by 82.4 cents per gallon, offering some financial relief to the trucking and logistics industries that have been dealing with high fuel costs.

The biggest year-over-year decreases were seen in the Rocky Mountain region and the West Coast less California subregion, where prices fell by $1.05 and $1.08 per gallon, respectively.

Diesel prices fell across all ten regions tracked by the EIA, ranging from a decrease of 5 cents in New England to 1.3 cents in the West Coast less California subregion. Here’s a closer look at how prices changed in various regions:

  • East Coast (PADD 1): Prices fell by 3.2 cents to $3.725 per gallon. New England saw the steepest drop in this region, with a 5-cent decrease to $3.969 per gallon.
  • Midwest (PADD 2): This region recorded the largest decrease this week, with prices dropping by 4.7 cents to $3.627 per gallon.
  • Gulf Coast (PADD 3): Known for having the lowest diesel prices in the country, this region saw a decrease of 3.8 cents, bringing the price to $3.317 per gallon.
  • Rocky Mountain (PADD 4): Prices fell by 4.2 cents to $3.608 per gallon, maintaining relatively stable pricing compared to other regions.
  • West Coast (PADD 5): The average price dropped by 2.2 cents to $4.272 per gallon, with California experiencing a 3.2-cent decline, bringing the price to $4.707 per gallon.

The ongoing decline in diesel prices is due to various factors, including decreased demand, stable crude oil prices, and seasonal changes in fuel consumption. These trends have eased some of the financial pressure on trucking companies and other businesses that rely heavily on diesel fuel.

How This Affects You: Truck Drivers

For truck drivers and those in the trucking industry, the recent drop in diesel prices is welcome news. Lower fuel costs mean reduced expenses for operators, especially owner-operators and small trucking businesses that are heavily impacted by fuel prices. Over the past two years, high diesel costs have been a significant challenge, so this decline can help improve profitability and reduce overall operating costs.

Additionally, the drop in diesel prices can make it more affordable for companies to maintain their fleets and could lead to lower transportation costs for goods. This might also positively impact the broader economy by helping to keep the cost of goods down, which is beneficial for consumers and businesses alike.

As a truck driver, staying updated on fuel price trends can help you plan your routes and fueling stops to maximize your savings. While fuel prices can be unpredictable, the current downward trend provides a bit of breathing room for the industry.

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#DieselPrices #TruckingIndustry #FuelCosts #DieselDrop #FuelEconomy #TruckingNews #Logistics #FuelRelief #EnergyInformationAdministration #TruckDrivers

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$3.5 million in grants to 27 colleges for commercial driver’s license (CDL) training programs.

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Federal Motor Carrier Safety Administration

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The Biden-Harris Administration is awarding nearly $3.5 million through the Federal Motor Carrier Safety Administration (FMCSA) to support 27 CDL training programs. These grants aim to improve driver safety, create opportunities for veterans and underserved communities, and expand the number of well-trained CDL holders as part of a broader effort to strengthen America’s supply chains and support truck drivers.

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The Biden-Harris Administration, through the Federal Motor Carrier Safety Administration (FMCSA), is investing nearly $3.5 million in grants to 27 colleges and commercial driver’s license (CDL) training programs. This funding is part of the Commercial Motor Vehicle Operator Safety Training (CMVOST) Grant Program, designed to improve driver safety and create new career opportunities in the trucking industry.

U.S. Transportation Secretary Pete Buttigieg highlighted that this funding will help address the growing demand for truck drivers while preparing for the future. The grant program has three main goals: to expand the number of CDL holders with advanced safety training, to offer opportunities for veterans and their families to join the trucking or busing industry, and to increase training for individuals from rural, refugee, and underserved communities.

FMCSA Deputy Administrator Vinn White emphasized that the focus of their work is on safety, both for the roadways and for commercial motor vehicle drivers. The funding is intended to make it easier for new drivers to enter and stay in the commercial vehicle industry.

Over half of FMCSA’s annual budget goes to funding states and local communities to promote commercial motor vehicle safety. Apart from the CMVOST program, FMCSA also offers funding through the High Priority Grants Program and the Commercial Driver’s License Program Implementation Grant, all contributing to the Department of Transportation’s National Roadway Safety Strategy.

The FMCSA is committed to preventing crashes, fatalities, and injuries involving large trucks and buses. They develop safety standards, analyze data, conduct research, and work with various stakeholders to improve commercial driver training and safety.

How This Affects You: Truck Drivers

If you’re a truck driver or considering a career in trucking, the Biden-Harris Administration’s recent funding boost could directly benefit you. For current drivers, this means access to enhanced training programs designed to improve safety skills and potentially make your job safer and more efficient.

If you are a veteran, a member of the National Guard, or from a rural or underserved community, these grants are creating pathways to enter the trucking industry. The funding helps make training more accessible, which can lower the barriers to starting a career as a commercial driver.

Overall, these initiatives are part of a broader effort to strengthen America’s supply chain by ensuring that there are enough skilled drivers on the road. By focusing on safety and providing more training opportunities, the FMCSA aims to support drivers and keep the roads safer for everyone.

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#TruckingIndustry #CDLTraining #BidenHarrisAdministration #FMCSA #DriverSafety #VeteransInTrucking #RuralCommunities #SupplyChain #RoadwaySafety #TruckingGrants #CommercialDrivers

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