Waltham, Massachusetts-based TruBlu Logistics, a subsidiary of Fresenius Medical Care North America, says it is divesting its private long-haul fleet in early February and will transition cross-dock shuttle operations to another logistics company by the end of February. The moves are expected to affect around 150 of Tru Blu’s 600 trucking jobs.
TruBlu Logistics is a leading provider of dialysis equipment, medicines and supplies for kidney care, according to its website.
In a statement, TruBlu Logistics confirmed the news, stating that after evaluating the company’s North American supply chain operations, “We are implementing strategic changes to increase efficiency and better serve our patients and customers.”
Effective Feb. 2, TruBlu will be divesting its “long-haul resupply, private fleet resources and converting to a purchased one-way transportation network.”
“Today, we ship about 80% of our resupply freight with contract carriers. A cost analysis shows that we operate more economically using contract carriers to transport long-haul loads instead of our TruBlu fleet,” Kirsten Stratton, senior media relations manager for Fresenius Medical Care, said in a statement to FreightWaves.
Stratton said the company will transition its cross-dock shuttle operations to Penske Logistics, a diversified international transportation services company, to increase efficiency and reduce operating costs.
“The agreement with Penske Logistics gives our North American Supply Chain access and exposure to equipment, knowledge, and technology that will drive transportation efficiencies and sustain high-quality service deliveries,” Stratton said. “These steps are in alignment with our FME25 transformation program aiming to increase profitability, efficiency, and productivity.”
According to the Federal Motor Carrier Safety Administration’s SAFER website, TruBlu Logistics had 614 drivers and 673 power units as of its latest MCS-150 form it filled out in September 2023. Of this number, the company said around 150 drivers who work in long-haul resupply and cross-dock shuttle operations will be affected. Stratton said the remaining drivers in the company’s final mile customer delivery fleet will not be impacted by the recent changes at TruBlu Logistics.
The company operates 14 distribution centers in the U.S., along with over 50 cross-dock locations. All but four cross-dock shuttle operations will be transferred to Penske Logistics. Stratton said those employees will have the opportunity to obtain employment with Penske effective Feb. 29.
The remaining four cross-dock shuttle operations will not be transferred to Penske Logistics. They are in Marlborough, Massachusetts; Ogden, Utah; Tempe, Arizona; and Hazelwood, Missouri.
“These drivers are eligible for severance under the company’s severance plan as they are not part of the transfer agreement with Penske Logistics,” Stratton said. “Employees who are laid off as a result of our divestment of TruBlu Logistics will be eligible to receive a severance package and have an opportunity to use outplacement services that can help them update their skills and find other jobs. Our intention is to provide resources that can help people successfully transition to another job opportunity as soon as possible.”
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Translation: “We’re falling behind in America’s race to the bottom. It’s time to step up our game and cash out as much profit possible for our executives.”