Priority Transportation Closes Its Doors
Truckload carrier Priority Transportation was forced to close its doors are a result of pressures from rising operational costs caused in large part to substantial fuel increases, weak truckload freight demand, and an ever tightening credit market. Trucking operations in New York and Indiana will be phased out as the company shuts down. In addition to truckload services, the freight company offers less-than-load (LTL) and freight brokerage services.
In 2006, Priority pulled in over $250 million in revenue, which at the time ranked the company in the top 100 list of the largest freight carriers in the United States. The company ran over 1000 tractors, over 2000 dry-van trailers, and over 500 reefer trailers at its peak. The freight company’s coverage was virtually the entire United States.
In closing its operations, Priority entered into an agreement with Celadon Group, based in Indiana that will help Priority wind down operations and help to ensure that current customers are not left in the lurch with respect to service. Celadon will cover some of Priority’s loads and assist in the collection of accounts receivable. Celandon’s deal is much like the workout arrangements made between other larger carriers with smaller operations that were forced to close.
Freight shippers and truckload shippers who relied on Priority for good shipping rates will now be forced to obtain their freight quote elsewhere. Many will need to turn to freight brokers in order to obtain the best shipping rates and cheap shipping options. Once again, the industry is consolidating because of weakness in the economy and higher freight shipping costs.