Loss of DHL contract leads to New York carrier shutting down

Business closing

New York Express and
Logistics will shut down after losing a contract with DHL, the company said in
a filing in New York state.

The company completed a
Worker Adjustment and Retraining Notification (WARN) Act filing in New York,
citing the loss of a contract with DHL as the reason for the shutdown of New
York Express and Logistics in Latham, New York. In all, 48 employees will be
affected as of March 31, 2020. The filing, entered into the New York WARN
database Dec. 30, 2019, says locations in East Syracuse, Rochester and Depew,
New York, will all be affected.

It is unclear from the
WARN filing what services New York Express and Logistics provided DHL, and the
company does not appear to have an active website.

New York Express and
Logistics is a subsidiary of North East FreightWays, based in Hooksett, New
Hampshire. North East does business under Land Air Express. Land Air is a large
provider of less-than-truckload and truckload direct next day services in the

Chris Kalavantis,
operations manager, declined comment on the filing, referring all questions to
North East FreightWays. The phone number for North East is managed by Land Air.
A request for comment left with Bob McDermott, vice president of Land Air, was
not returned by publication.

Companies are required
to file WARN Act notices when laying off 25 or more employees or closing a
plant that affects more than 25 employees. The filing must give 60 days’ notice
prior to any formal layoffs.

Economic conditions, insurance liability increases and a general overcapacity in the marketplace after some fleets expanded to meet 2018 demand led to many high-profile closures of carriers in 2019.

Celadon, New England Motor Freight, Falcon Transport and LME are among the companies that closed in 2019. In all, it is expected that carrier closures led to more than 50,000 power units being removed from the marketplace.