May 17, 2020

Third-party logistics provider pays $152,000 to recover Celadon trucks ‘quarantined’ in Mexico


The court filings are part of the U.S. Bankruptcy Court for the District of Delaware hearings for shipping company Celadon Group, which filed for Chapter 11 bankruptcy on Dec. 9.

Sese Logistics U.S. had to pay $152,433 in fees and expenses to get the discharge of 5 a lot of goods from Mexico in December, consistent with court filings.

The loads were being transported by Celadon from a Volkswagen factory in Mexico to the Volkswagen factory in Chattanooga. Sese Logistics and Celadon Group had a broker-carrier agreement dating back to June 2, 2014, consistent with filings.

Sese Logistics said it had been notified by Celadon on Dec. 8 “that the hundreds in transit wouldn't meet their final destination” and “the five trailers were quarantined at a facility in Mexico.”


It is not immediately clear whether the trucks brokered by Sese Logistics were abandoned, seized by force, or were embroiled in Celadon’s bankruptcy.

Jaguar Transportation, Celadon’s Mexican division, had drivers and employees take over trucks and terminals in an effort to receive money they claimed they were owed when Celadon’s bankruptcy occurred.

Officials at Sese Logistics declined to comment to FreightWaves.

Matt Silver, co-founder and CEO of Forager, said transporting cross-border loads always involves risk.

“The experience with potential theft or ransom within the past has generally been tied to high-value goods and goods that you simply could easily resell on the black market, like tequila, tires and products that would be melted down into a cloth ,” Silver told FreightWaves.

Chicago-based Forager may be a freight tech company that specialize in freight from Mexico and Canada.


“I’ve been involved automotive shipments being taken hostage, but generally, when the thieves open the trailer and realize those parts are built specifically for somebody like Volkswagen, they give the freight back, unless they see value within the truck and trailer itself,” Silver said.

According to court documents, Sese Logistics said it worked for several weeks and “incurred $152,433 in fees and expenses in obtaining the release” of the trailers.

Sese Logistics U.S. also agreed to pay the debtors of Celadon Group $608,617 that Celadon was owed for open invoices issued to Sese on account of goods and supplies transported, according to filings.

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