Sudden Shutdown for Florida's Flagship Transport Operations

Some 455 truck drivers without jobs after owners failed to pay them for weeks

More than 455 truck drivers who hauled freight under the banner of Flagship Transport LLC lost their jobs Tuesday after not being paid for weeks (Photo: Jim Allen)

Nearly 455 truck drivers associated with Flagship Transport LLC, a logistics holding company based in Medley, Florida, have been unable to reach company executives since last week. Drivers received text messages stating their paychecks would be available for pickup on Tuesday, but this did not occur.

Antonio Rivera, a 37-year-old owner-operator from DeLand, Florida, drove for Arel Trucking Inc. (ATI) for almost two years, transporting beer, water, and other goods. He delivered his final load on Monday. Rivera mentioned that many drivers brought their cargo to the yard in Medley on Tuesday but received no instructions from dispatchers or company owners about their next steps. Some drivers are still returning to the Miami area.

Roberto C. Fernandez, president and director of Flagship Transport, and Mario Abad, also listed as a director, did not respond to requests for comment on the status of the company. David M. McDonald, an attorney based in Miami and the registered agent for Fernandez's businesses, stated that he was not involved in daily operations but had heard rumors about Flagship's financial situation. McDonald mentioned that the company is negotiating with creditors and potential investors to secure additional funds, but he was not involved in those talks. On Wednesday, neither Flagship Transport nor any of its affiliated companies had filed for bankruptcy.

What happened?

Rivera noted that there were indications of financial difficulties within the company, but management reassured drivers and employees not to worry because they were switching banks and would temporarily pay by paper checks rather than direct deposits. According to the Federal Motor Carrier Safety Administration's SAFER website, Arel Trucking, which is a subsidiary of Flagship Transport, has 380 power units and drivers.

However, Rivera claims that paper checks received by drivers and office employees in the past two to three weeks have bounced. He is owed about $5,000, and some drivers are owed up to $20,000. Initially, they trusted the company, believing the bank switch was a transitional issue.

Flagship Freight, AQI Logistic Trucks, Gables Transport Inc., GAT Logistics, and Flagship Freight are subsidiaries of Flagship Transport. On March 14, Flagship Freight sought owner-operators for local port work despite financial difficulties. A driver who responded to the call began working on March 15, but he is currently a thousand miles from home and without fuel or payment.

On Saturday, drivers were notified via text message to only refuel at Love's Travel Stops. Uncertain if their fuel cards still functioned on Wednesday. For dispatching and breakdown assistance, Flagship Transport has an office staff in Barranquilla, Colombia. Rivera contacted his former dispatcher, who informed him that everyone had been expelled and the office had been closed.

On Wednesday, calls to the companies' U.S. offices went unanswered and Flagship Transport's website chat function was unavailable. Wednesday, truck drivers waited at the company's terminal in Medley for answers from executives. Rivera believes they were told their paychecks, which included back pay for bounced checks, would be ready on Tuesday in order to buy the company more time.

MintN