USF Corp. announced Monday it is shutting down its USF Red Star operating company effective immediately.
The company concluded Sunday that a job action initiated Friday by the International Brotherhood of Teamsters had triggered a loss of customers and revenue to a point "where Red Star would never be able to recover from the business losses caused by the Teamster job action."
"This is a terrible development for our more than 2,000 employees and for the customers who depended on them," said Richard P. DiStasio, USF Corp. chairman, president and chief executive officer. "The Teamsters actions on Friday were devastating to Red Star's business. In this economic environment, where just-in-time inventory is the norm, not the exception, any irregularity in transportation services puts all Red Star customers at risk. As a result we have lost customers and revenues; realistically, we know many of those customers are gone forever."
DiStasio promised that USF and its operating companies would work hard to help Red Star customers who are affected by these developments.
USF Corp. specializes in delivering comprehensive supply chain management solutions, including high-value next-day, regional and national LTL transportation, forward and reverse logistics, and premium regional and national truckload transportation. The company serves the North American market, including the United States, Canada and Mexico, as well as the U.S. territories of Puerto Rico and Guam. USF Corp. is headquartered in Chicago.
For more information, visit www.usfc.com
The company concluded Sunday that a job action initiated Friday by the International Brotherhood of Teamsters had triggered a loss of customers and revenue to a point "where Red Star would never be able to recover from the business losses caused by the Teamster job action."
"This is a terrible development for our more than 2,000 employees and for the customers who depended on them," said Richard P. DiStasio, USF Corp. chairman, president and chief executive officer. "The Teamsters actions on Friday were devastating to Red Star's business. In this economic environment, where just-in-time inventory is the norm, not the exception, any irregularity in transportation services puts all Red Star customers at risk. As a result we have lost customers and revenues; realistically, we know many of those customers are gone forever."
DiStasio promised that USF and its operating companies would work hard to help Red Star customers who are affected by these developments.
USF Corp. specializes in delivering comprehensive supply chain management solutions, including high-value next-day, regional and national LTL transportation, forward and reverse logistics, and premium regional and national truckload transportation. The company serves the North American market, including the United States, Canada and Mexico, as well as the U.S. territories of Puerto Rico and Guam. USF Corp. is headquartered in Chicago.
For more information, visit www.usfc.com
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