LME Shutters its doors: Signs of a Slowing Trucking Industry

LME Inc., a less-than-truckload carrier out of Minnesota, abruptly shut its doors last week. The shuttering of this 600-employee operation  "is an indication that trucking companies that are poorly run could be in deep trouble if the economy slows" (Economist Noel Perry Warns of More Shutdowns After LME Padlocks Doors, Transport Topics, 16 Jul 2019). Besides LME, other trucking companies have also shut their doors this year. This is exemplary of both a slowdown in the trucking industry and signs of a weakening economy. 

Other carriers who shut their doors this year include: New England Motor Freight (a Northeastern LTL carrier), TFI International Inc.'s Highland Transport Division (cross-border unit operating in  the Northeast), Eastern Connection (regional freight carrier in the Northeast), Falcon Transport (Ohio-based carrier who hauled a lot of freight to and from General Motor's Lordstown, Ohio, plant), and Starlite Trucking Inc. (California-based agricultural products hauler).  

There is a lot of competition in the trucking industry right now, and companies who are not making enough money cannot stay afloat long enough to remain in business.