RUTHERFORDTON, N.C. – North Carolina trucking company FreightWorks Transport has shuttered its doors after an abrupt loss of business. More than 200 employees have been laid off.
Employees were notified of the closure through a video message according to FreightWaves, which explained that the company’s major customers had demanded major rate and volume concessions. One customer withdrew a significant percentage of its freight on Feb. 28, the message said.
That had an “immediate and devastating” impact on the company’s ability to stay afloat, according to the message. As a result, the decision was made to shut down.
As final deliveries are being made, the company stressed that all employees will be paid, with $500 bonuses given to drivers who deliver loads once a bill of lading is signed.
The company also cited a weak freight market.
The trucking industry has been severely affected by worsening market conditions since mid-to-late last year, with many instances of shutdowns and mass layoffs taking place. Some of those include C.H. Robinson (650 layoffs), Ryder System (800), Flexport (700), Embark Trucking (230) and Uber Freight (150).