Another Large Carrier Goes Bust as Stevens Tanker Division Announces Closure

Dallas, TX – Dallas-based carrier Stevens Tanker Division, a subsidiary of Stevens Transport, has announced its closure effective mid-October.

In a letter to office personnel dated September 25, 2019, executive vice president of Stevens Tanker Division, Scott Mellman, said “with deep regret” that “Stevens Tanker Division will cease all operations on Tuesday, October 15, 2019.”

“This will be a permanent closure of all Stevens Tanker Division business at all locations and in all divisions,” he goes onto say.

Mellman credits the decision to close as a result of “unforeseen business developments over which Stevens Tanker Division had no control.”

 

The company services oil and gas drilling operations in Louisiana, New Mexico, Oklahoma and Texas by hauling water and frac sand.

Mellman said the company experienced a 65% reduction in sand orders beginning on September 20 of this year.

Mellman also said the company had been experiencing a continual loss of production water due to customers’ increase use of piping.

While the projected date of closure is October 15, Mellman noted it “may be earlier,” based on business volume.

Mellman included in his letter that payroll will continue to run every Friday until the closure and health care benefits will extend through the month of October.

 

Stevens Tanker Division began operations in 2012.

Data from the Federal Motor Carrier Safety Administration’s SAFER Web indicates Stevens Tanker Division employs 576 drivers and operates 853 power units.

In the past two years, 53 accidents have been reported, with eight of them involving fatalities.

As of publication, calls by Transportation Nation Network (TNN) to Mellman have gone unreturned.

All representatives at Stevens directed questions about the closure to Mellman.

Letter sent to Stevens Tanker Division Office Personnel on September 25, 2019 (Photo: Michael North/Facebook)

SAFER Web data reveals Stevens Transport (aside from the soon-to-be-defunct tanker division) employs 2,426 drivers and owns 1,953 power units.

According to Mellman’s letter, drivers who are currently employed by Stevens Tanker Division “may be needed at Stevens Transport.”

 

It remains unclear if and how many Stevens Tanker Division drivers might be extended offers of employment from Stevens Transport.

The news of Stevens Tanker Division’s closure is among the largest company closures of 2019, topped only by New England Motor Freight (1,472 drivers) and Falcon Transport (585 drivers).

Other companies such as HVH Transportation and LME dominated trucking headlines as both also ceased operations abruptly earlier this year.

 


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