Owner Of Closing Indiana Carrier Blames FMCSA, Rising Insurance Costs For Demise
(Originally published Wednesday, June 5, but has since been UPDATED with new interview.)
Anderson, Indiana – The owner of A.L.A. Trucking based in Anderson, Indiana is blaming his company’s recent demise on rising insurance costs, falling freight rates, and the Federal Motor Carrier Safety Administration (FMCSA).
Alan Adams confirmed to Transportation Nation Network (TNN) in an exclusive interview that his company, A.L.A. Trucking, will be closing its doors later this month.
As a result of the impending closure, 41 truck drivers and 15 other employees will lose their jobs.
Adams told TNN he had no choice but to shutter the company after his insurance rates skyrocketed from $330,000 per year to $702,000.
“My insurance man said there’s nothing they could do,” Adams said of his pleas to his insurance company. “They don’t care.”
Adams argued insurance companies shouldn’t have so much power.
“The insurance company said they have lost money the last couple of years on my policy. With a growing company comes growing pains, but the insurance company shouldn’t have this much power to put a company out of business,” Adams commented.
Adams attributed the rising insurance costs to factors beyond his control such as flaws in the FMCSA’s Compliance, Safety, Accountability (CSA) program.
A look at the carrier’s Safer Web snapshot reveals the company has a “satisfactory” safety rating and has reported 7 crashes in the last 24 months.
Adams said only 2 of the reported 7 crashes were charged to his company, but his insurance rates kept going up.
He cited one recent example when he said his driver was sitting in traffic along I-94 in a construction zone when a construction truck backed into one of his trucks.
The collision crushed the hood of his truck and it had to be towed away.
“That goes on my record as a tow away reportable accident. You turn it in [to the insurance company] and they raise the insurance rates,” Adams fumed.
Additionally, 106 inspections where conducted during this time including 40 vehicle inspections.
Of the 40 vehicle inspections, 4 were placed out of service (10% OOS rate), while the driver inspections resulted in a total of 8 being placed OOS (7.5% OOS rate).
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Another part of the problem with insurance rates, Adams said, was ambulance-chasing lawyers.
“They are driving insurance costs through the roof,” he contended.
In addition to soaring insurance costs, Adams said plummeting freight rates also contributed to the company’s demise.
Adams said he simply wants out of the trucking industry, but at 61 years old, he’s not sure what his next move will be.
“I don’t want to do this anymore. I’m over it,” he said.
Further adding to Adams’ desire to exit the industry is his strong belief that the American dream is dying for truck drivers.
“We are the ones that always get sh*t on. Drivers are getting out because they don’t want to put up with this bullsh*t,” he said.
Adams said truck drivers make sacrifices that the general public, and even many in the trucking community, take for granted.
He offered a deeply personal example. “They buried my grandfather and I wasn’t able to be there for his funeral, and he was my best friend,” Adams sadly recalled.
As for A.L.A. Trucking, Adams said the company is expected to deliver its final loads by June 26.
However, he said he is going to continue fighting up until the very last day in hopes something might change.
“It’s not about me. It’s about my crew and everyone of my guys who work for me,” Adams proudly stated.
“I’ve got people calling me every 20 minutes saying they have a solution. I don’t know what to do,” he conceded.
He told TNN he will continue to update us if anything changes in the coming weeks.
Adams’ 2000 Kenworth W900L Featured on “Tips, Tricks & Trucks”
Transportation Nation Network recently featured Adams and his beautiful 2000 Kenworth W900L in our original video series “Tips, Tricks & Trucks.”
You can watch the short video HERE.