Greenville, Tennessee-based asset-light carrier Forward Air Corporation Wednesday, Jan. 4, announced it has entered into an agreement to acquire the assets of Land Air Express, Inc. a privately held full-service expedited LTL provider, for $56.5 million. The transaction is expected to close yet this month.
Land Air Express, headquartered in Bowling Green, Kentucky, offers a variety of services, including guaranteed, standard, exclusive, same day, hot shot, and pickup and delivery. With over 200 drivers (including company and leased capacity providers), Land Air Express operates in over 25 terminals across the U.S.
"Our core LTL business is the key growth area for Forward and the purchase of Land Air Express is an important addition to our LTL growth opportunities," said Tom Schmitt, chairman, president and CEO of Forward Air. "This acquisition will accelerate the expansion of our national terminal footprint, particularly in the middle part of the United States, and we believe it will strategically position us to better meet the current and future needs of customers.
"Land Air Express is a high-performing team that shares our precision execution DNA and a strong commitment to collaboration with customers. We believe this acquisition will increase our capacity to provide customers with the industry-leading on-time and damage-free service they demand. We are thrilled to welcome Land Air Express into the Forward family.”
Changes to broker, freight forwarder regulations proposed
The Federal Motor Carrier Safety Administration today published a proposal for the implementation of several Congressionally-required regulations for brokers and freight forwarders that will help protect motor carriers in the event of non-payment, including the immediate suspension of a broker's authority.
In a Notice of Proposed Rulemaking, FMCSA proposes to implement regulations in five separate areas related to brokers' financial responsibility: assets readily available; immediate suspension of broker/freight forwarder operating authority; surety or trust responsibilities in cases of broker/freight forwarder financial failure or insolvency; enforcement authority; and entities eligible to provide trust funds for form BMC-85 trust fund filings.
An Advance Notice of Proposed Rulemaking (ANPRM) seeking industry feedback on a potential proposal was published in 2018. The regulations are requirements under the Moving Ahead for Progress in the 21st Century Act (MAP-21) transportation bill signed into law in 2012.
FMCSA will accept comments on its new NPRM for 60 days beginning Thursday. Comments can be filed here through March 6.