Road rumors: Is CRST shutting down its OTR operations?
A headline suggesting that CRST’s over-the-road operations are shutting down sent the trucking industry into a temporary frenzy and state of confusion. What is really going on at the mega carrier?
On Dec. 3, FreightWaves posted a story with the headline “CRST to shut down over-the-road trucking operations, source says.” With more than 4,000 truck drivers, not including owner-operators the carrier hires, this qualifies as “Big if true” news.
Well, it’s not true.
Shortly after the story was published, FreightWaves’ CEO Craig Fuller walked it back. In a social media post, he explained where and how the wires got crossed. The story has been updated, and Fuller apologized.
What exactly is going on at CRST? Is it shutting down its over-the-road operations?
“This couldn’t be further from the truth,” the company stated.
In a blog post published on Dec. 4, CRST said it made an internal announcement the previous day about its “plan to redeploy a portion of its Capacity Solutions OTR fleet to other divisions.” What does that mean?
CRST will be moving 100 trucks to other parts of its business. Another 200 trucks will be completely removed from its fleet.
According to the Federal Motor Carrier Safety Administration, the carrier has more than 4,300 trucks.
More than 300 CRST employees received a 60-day notice that they were being let go. A “large portion” of those employees are truck drivers.
Some CRST truck drivers affected by the “headcount reduction” may still have a job. The carrier noted that it is working with drivers to find other driving opportunities within its other fleets. That includes its dedicated, specialized, home delivery and flatbed divisions.
“This decision is intended to strengthen our ability to serve customers through the solutions that drive the most value, reliability and long-term stability,” CRST said.
Although many trucking companies have folded over one of the longest freight recessions in recent memory, CRST claims it is doing just fine.
In a social media post, CRST Dedicated Solutions President Jerald Kilgore said the carrier’s third quarter was its “strongest third quarter since 2022, outperforming many competitors in today’s challenging freight environment.” CRST is not a publicly traded company and does not publish a quarterly report.
“With 70 proud years in trucking, CRST is committed to evolving with our customer needs and industry changes,” the carrier states in the blog. “We look forward to a bright future ahead.”
While it is true that a very small percentage of CRST drivers received some “walking papers,” they may not be out of a job with the company for long. Meanwhile, the company claims it is starting to rebound from a three-year freight recession. LL
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