Montgomery Transport LLc. just filed for chapter 7 bankruptcy and ceased operations
Posted by almondmarlin23@reddit | Truckers | View on Reddit | 25 comments
Hey everyone, I've got some bad news, Montgomery Transportation LLC., a major flatbed carrier in my home state, just filed for chapter 7 bankruptcy. This is the reality of the economy right now. About 800 drivers lost their jobs Thursday and were told to finish the load if they had one or to drop the truck and trailer at the main terminal, and understandably, some drivers left their trucks at truck stops. I say this just to say its only a matter of time before other major carriers start to fall as well. Stay safe out there y'all
CapitanPino@reddit
Yall can shit on Crete all you want on this subreddit but the MAIN reason I moved to Crete besides the pay from Werner is their business model.
They operate with 0 debt. And it seems unbelievable but working here you can tell in both good ways and bad.
Im no company shill, but in hard times you can tell which companies got their finances in order and which don't.
Insurance Premiums aren't rising. Profit share still going strong. Bonuses paid out last week. Vacation and sick leave is protected and guaranteed.
Cant lose everything if everything is paid for. Idk how these companies run with so much debt.
skeletons_asshole@reddit
That's kind of terrifying, considering how stable flatbed freight is in comparison with some of the other stuff right now.
Nearby-Border-5899@reddit
flatbed often gets hit hard than others cept maybe tanker when the economy tanks. Even in a recession people still need general goods and refrigerated goods
skeletons_asshole@reddit
I guess it's felt different in Texas, a lot of imports are suffering but we've got a ton of locally produced stuff still. Makes sense though.
Damn it's annoying that my career is basically flatbed/tanker, lol
ElSenor847@reddit
Just making America 🇺🇸 Great again 😂 only the beginning! While Mexico & Russia & China excel without us… because of only ☝️ person! Orange 🍊 baboon
Lane8323@reddit
So much winning
up3r@reddit
Holy Smokes. This is huge .
Steve_Mauro@reddit
Damn
trucksarekewl@reddit
If the bigger companies are failing, how are single truck operations surviving i wonder
Ornery_Ads@reddit
I max my 70 every week, pay my bills, and get to keep whatever's left. Maybe I make $5/hr, maybe I make $500/hr. Thats irrelevant to the business because I just get the leftovers.
Megas pay their bills, pay their drivers, then keep whatever is left. The driver pay doesn't go up and down to align with the business profit.
A company could find they break even at $6,500/week gross while paying $2,000/week for a driver on 3,000 miles.
If the rates are good, they may gross $7,500 for that week/mileage. In that case, they profited $1,000.
If the rates are bad, they may gross $5,500 for that week/mileage. In that case, they lost $1,000.
No matter if they had a profit or a loss, the driver was paid $2,000.
For an O/O is in the same situation, if the week was good, they earned $3,000. If the week was bad, they earned $1,000. Still turning a profit, just less than the company driver.
JoshHatesFun_@reddit
Less overhead.
No office but the truck, no staff but the driver.
trucksarekewl@reddit
All the guys I've known who've bought their own trucks eventually came back to the company. Not worth it
dtbrake@reddit
Only people i know are O/O who make decent money. I cant think of a single driver who would go back to company driving. Alot do go back after they retire because they are bored.
trucksarekewl@reddit
Being an owner op sounds like a complete waste of time and money to me. I got it pretty good all things considered
dtbrake@reddit
I think the big secret is to not buy a new truck and trailer. The office work takes a few hours a week.
Hell even the lazy drivers not willing to do there own brakes and simple service are making good monwy
trucksarekewl@reddit
I'll pass, making decent money worry free
dtbrake@reddit
Mind if I ask what your taking home roughly a year and how much time your getting home?
trucksarekewl@reddit
Take home idk, but 100k or more home daily w2
dtbrake@reddit
In that case I dont blame you a bit. Sounds good to me
Rasty1973@reddit
And driven to succeed unlike the dispatch staff that has zero skin in the game.
onlyBotsdownvote-me@reddit
I heard P&S was buying them. But either way, bankruptcy does not equate to an automatic closure of the business, and people losing their jobs.
8YYYxx8@reddit
soooooo…. we need more tariffs. to help the small guy ya’ know
SeaRow556@reddit
Alot of the larger companies are running on a negative cash flow this year. Some of the best indicators is looking at the megas which are publicly traded on the stock market and read their filings. This os far better than relying solely on news articles which are designed for engagement and to keep you reading. Plus its far more regulated than journalism.
Microshlongg@reddit
What do you think is the cost of all these negatives
SeaRow556@reddit
Over expansion. Inefficiencies, improper fuel negotiations, improper freight negotiations, lack of quality drivers, dwell time, and over saturation of truck drivers. Not having cheap debt.