Universal Logistics Holdings has ceased operations of its brokerage division, Universal Capacity Solutions, as noted in a recent securities filing. The shutdown will result in the termination of approximately 112 employees, with an additional 13 employees remaining until September 13. This decision, which involves an estimated $8 million to $10 million in pre-tax charges and future costs, was made to allow the parent company to concentrate on its top priorities, according to the filing. Universal Capacity Solutions offered a range of services including truckload (TL), international shipping, drayage, intermodal, and other logistical services.
The downsizing occurs amid a challenging market environment for Universal Logistics. In its second quarter, the company reported a 12% increase in operating revenue to $462 million, largely due to securing a specialized development project. However, the company’s managed brokerage segment suffered a $2.2 million loss, and its intermodal segment faced an $8.3 million loss. Founded in 2005 and based in Nashville, Tennessee, Universal Capacity Solutions provided logistical capacity for over 800 customers and worked with a network of over 15,000 contracted carriers, as stated on its LinkedIn page.
Universal Logistics has numerous subsidiaries. Notably, on August 12, its Universal Development of Tennessee subsidiary entered into an agreement with Ford to build a 1 million square-foot warehouse and distribution center to support Ford’s next-generation electric truck production.