DELANCO, N.J. — Jevic Transportation of Delanco, N.J., is going out of business, the company said Monday.
President and CEO David Gorman revealed the decision in a letter posted on the company’s Web site.
“The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary,” Gorman wrote.
Jevic will stop providing pickup service effective Monday, and will deliver all freight currently in the system prior to closing, according to the statement.
Additionally, Jevic will continue to provide customer service “through the wind down period” at (888) GO-JEVIC. The Jevic Web site likewise will remain active and will be updated during the period.
“We greatly appreciate the loyalty of our many Jevic customers. It has been our pleasure to provide solutions to your transportation needs over these many years,” Gorman concluded. “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.”
The company has 1,185 power units and 1,230 drivers, according to Federal Motor Carrier Safety Administration information.
In another posting addressing personnel questions, the company said that Monday would be last day of work for most employees, though a limited number would be asked to stay on during the wind-down.
“Driver uniforms should be returned to the facility or left in your truck,” said the document. “All other company property should be returned to the facility.“
Company medical benefits also have been terminated.
“Any medical, dental, or vision services performed after May 19th, or any prescriptions filled after that date, among other things, that would have previously been covered by the Jevic plans, will not be eligible for reimbursement or coverage,“ a 'Dear Jevic Employee' letter stated.
The company was founded in 1981. At one time it had facilities in Delanco; Chicago; New England; New York; Charlotte, N.C.; Atlanta; Houston; Cleveland; Cincinnati; and Los Angeles.
The company was known for its unique operating model which handled freight less than conventional carriers, lowering lost and damaged shipments dramatically, while still delivering to the entire 48 states. This “Breakbulk-Free” model, as it came to be known, was the platform for the myriad innovations, which solidified the carrier’s reputation for customer service.
Yellow Corp. bought Jevic in 1999. SCS Transportation Inc., which was spun off from Yellow (YRC Worldwide), sold Jevic to Sun Capital Partners in 2006.