Dry-van truckload carrier and logistics provider OTR Express Inc. announced today that it will cease operations within 60 days because of adverse business conditions, citing a difficult freight market, high fuel costs, high insurance costs and declining used truck and trailer values.
OTR Express will continue pick up and delivery of loads for customers until further notice and plans to shut down operations and liquidate in an orderly manner.
“Our immediate goal is to meet our commitments to customers and conclude our business in a way that treats everyone as fairly and ethically as possible,” said William P. Ward, president and CEO of the Olathe, KS-based company. “We deeply appreciate the willingness of our customers, employees, lenders and vendors to work with us during this difficult time.”
Ward said that in recent months the company has explored many different alternatives for recovery. Despite some positive impact from restructured loan payments and recent fleet and staff downsizing, Ward said OTR Express can no longer foresee a successful outcome.
“We have lost money the past seven quarters,” Ward said. “The company has not been able to return to compliance with certain covenants on our working capital line of credit, and we have not been able to comply with our current agreement with equipment lenders.”
Ward said the company plans to communicate details directly with its employees, stockholders, customers and vendors as necessary.