New England Motor Freight made a move to file for bankruptcy protection to ensure that the
assets in their possession are safe until the wave of bankruptcy elapses. The decision is set to
affect those dependent on the company so adversely since they are to call off all the activities
around trucking. NEMF had been going through tough times since they had not been making a
profit for the past two years according to Vincent Colistra. He stated that the company was
making losses in addition to the reduced number of drivers available and a high cost of
operation, including insurance, equipment acquisition, and technological development.

NEMF according to onlookers, had been involved in lots of business agreements that were not
productive, and this is one of the reasons that have led to the downfall as stated by Evan
Armstrong. They did provide their services in New York, New Jersey, Chicago, Canada, and
Puerto Rico. They are not the first company to terminate their operation, but they go down into
annals of history as the biggest company to shut down after CF Motor Freight.

Armstrong adamantly reiterated that the bankruptcy of NEMF is quite something that will cause
a deviation in the trucking industry. Analysts, also quite pessimistic claim that low economy will
create havoc for other carriers. On the positive side, Satish Jindel claims that there is something
to be learned from the calamity that befell NEMF. The employees were under the representation
of the International Association of Mechanists that failed to approve the formal suggestion by
NEMF about employee payments. The plan would have protected NEMF from the bankruptcy.

Ryan Poynter noted that the NEMF closure would deal a significant blow to the industry in terms
of rates as the other carriers attempt to fill in the gap left in the attempt to maintain the level of
services they provide with shippers in existence who will have to make payment to get required services. Ted Morandin said that he expects the companies that have expanded their reach will pick up on NEMF’s operations in the Northeast.

NEMF have assets ranging between $100 million to $500 million, $50 million to $100 million
of debts and they owe four banks up to $59 million.