Land Air Seeks Emergency Funding

Following one of the FMCSA’s largest out of service orders in history, Land Air Express is back on the road — but they are seeking emergency funding in order to stay that way.

According to the Wall Street Journal, Land Air Express was shut down partly because it failed to adequately test its drivers for drug and alcohol use. They were also cited for allowing an improperly licensed driver behind the wheel of one of their trucks and for employing a driver who had failed a drug test.

Though the FMCSA has announced that Land Air Express trucks can resume operations on a provisional basis, the company had no income coming in during the two week shut down — forcing company officials to look for emergency financing to keep their trucks running.

Land Air Express is also attempting to deal with its financial hardships by scaling back its operations. They have closed two of their fourteen terminals — one in Burlington, New Jersey and the other in Carlstadt, New Jersey. They have laid off several employees. Others who haven’t been paid since before Christmas have been told to apply for unemployment benefits.

Even worse for the company is the fact that though Land Air Express is legally allowed to operate again, it faces intense competition from other trucking companies. The FMCSA shut down may have convinced many of their shippers to move their business elsewhere.

During the shutdown, Land Air Express was able to deliver 96% of its stranded loads thanks to assistance from the “Reliance Network”, a group of seven regional LTL carriers.

Sources:
The Wall Street Journal
DC Velocity