Dive Brief:
- Davis Express, Inc. based in Florida, is shutting down its operations after 44 years in business due to a challenging freight market, according to a Facebook post shared by President and Owner Jimmy Davis.
- The last few years have been challenging for the company due to the rise in refrigerated trucking costs while rates remain flat or decreasing, Davis said Wednesday. The family-owned and operated company employs over 250 people and has a fleet of 200 trucks and 400 trailers.
- Davis Express will continue making deliveries through April 23 and plans to return all trucks and trailers to its Starke terminal in Florida. Davis also said employees will be paid every Friday and receive benefits through the June 15 pay period.
Dive Insight:
A prolonged freight recession and ongoing tariff whiplash have created an unstable market for truckers, especially in the reefer market.
Per DAT, reefer load post volumes surged 22% in March due to a rise in Mexican produce imports to avoid potential U.S. tariffs. Just last week, produce volumes on the southern border dropped 32%.
“We have been unprofitable since early 2023 and do not see any signs of improvement in 2025,” Davis said. “In addition, plaintiff’s attorneys have increasingly targeted the trucking industry. Every trip a driver takes is Russian Roulette for everything I worked for my entire life.”
Davis said that although the company has been unprofitable, it has no cash flow issues and has sufficient funds to pay vendors, creditors and employees.
“We will continue to employ mechanics and operate the shop for the time being as we take equipment out of service and sell,” Davis said.
