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

Summary:
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.

News for You

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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