Swift Logistics, a brokerage and asset-based logistics provider, announced layoffs this week.
According to a letter sent to Pennsylvania’s Department of Labor and Industry, Swift Logistics will close its warehouse in York, Pennsylvania effective Dec. 31, 2019.
All 56 employees in that warehouse will be laid off permanently.
Swift Logistics is an entity within Knight-Swift, the fourth-largest trucking company in the US by revenue. The company did not immediately respond to inquiries from Business Insider.
Knight-Swift announced third-quarter earnings on Oct. 23, when the trucking giant disclosed adjusted operating income in Q3 2019 had plunged 27.4% from 2018.
A downturn is hitting the trucking industry — and now even large employers are get slammed
Trucking has faced significant headwinds this year. Trucking has been in a recession since the first half of 2019, according to ACT Research.
In the first six months of 2019, around 640 trucking companies went bankrupt, according to industry data from Broughton Capital LLC. That’s more than triple the amount of bankruptcies from the same period last year — 175.
The recession in trucking has especially affected small carriers, who operate largely on the spot market. Trucking loads can either be picked up on demand through the spot market or through a pre-arranged contract. The contract market comprises the vast majority of the trucking market, according to the American Trucking Associations.
Spot market rates have crashed in 2019, while contract market rates haven’t seen the same dip.
But these layoffs from Swift Logistics suggests again that the trucking industry’s contraction is impacting large companies, too.
Cold Carriers, a refrigerated trucking company with more than 400 truck drivers, filed for bankruptcy last week; it will continue operations as it restructures its debt obligations. Industry leaders like J.B. Hunt and Schneider all slashed their annual outlooks this year.