The massive freight recession has been marked by extraordinarily high figures that appear almost unbelievable.
In the past two years, numerous trucking companies and freight brokerage firms have shut down irreversibly, and this trend is unlikely to reverse course should the Trump Administration proceed with proposed tariffs on trading partners abroad.
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Approximately 88,000 trucking businesses and around 8,000 freight brokerage firms shut down operations in 2023, as per Freight Caviar statistics. Data from TruckInfo.net indicated that the trucking industry experienced a net reduction of roughly 10,000 carriers during the first six months of 2024.
Associated: Large freight firm seeksChapter 11 bankruptcy for restructuring
The American Trucking Associations remained optimistic about the sector’s growth in 2025, according to their yearly freight prediction issued in January, which anticipated an increase of 1.6% in truck traffic for this year following a dip over the last couple of years.
That report, however, was completed before the Trump administration's tariff plans were fully revealed, and since then, several trucking companies have already filed for either Chapter 11 reorganization or Chapter 7 liquidation bankruptcies this year.
Certain entities have stopped running their enterprises without declaring bankruptcy, like Equity Transportation Co. Inc., an Illinois-based freight business with around 100 drivers and 109 tractors. According to multiple insiders familiar with the circumstances, as reported by FreightWaves, the firm terminated all its drivers and shut down operations back in March.
A major trucking and logistics firm named LTI Trucking Services notified its 250 drivers on April 2 that they were ceasing their business activities. The organization stated that after exhausting every possible alternative, they came to the tough conclusion of closing down the company.
The Florida-based trucking firm Davis Express Inc., which operates 160 vehicles and employs 140 drivers, announced via its Facebook page that they would be ceasing operations indefinitely following their last shipments on April 23, with plans to have all trucks back at the depot by April 30.
The head of the firm stated that he plans to step down and feels unwilling to prolong his wait for the company’s fortunes to improve or to locate a potential purchaser. He mentioned that even the founding family has lost interest in keeping the business going because of difficulties within the sector.
Trucking firms declare bankruptcy
Large freight corporations boasting numerous drivers, tractors, and trailers have likewise declared bankruptcy during the initial six months of this year. This includes the transportation and logistics firm Balkan Express along with its subsidiary Balkan Logistics, which both soughtChapter 11 bankruptcy protection on April 30to facilitate debt restructuring.
The Balkan Express utilizes 159 locomotives and has approximately 166 drivers transporting various goods such as drinks.
On April 7, 2025, three unaffiliated trucking firms declaredChapter 11bankruptcy. These includeC&C Freight Networkfrom Braselton, Georgia;Best Choice Trucking LLCLocated in Dedham, Massachusetts; as well as Memphis-basedBest Logistics Inc.All these entities sought bankruptcy protection with the aim of restructuring their liabilities.
AZA Transportation has filed for bankruptcy.
Finally, the Great Freight Recession has dragged down another trucking company as AZA Transportation Inc. has filed for Chapter 11 bankruptcy to reorganize its business.
Associated: Vintage automobile components firm seeksChapter 11 bankruptcy protection
The trucking and freight transport business based in Mount Prospect, Ill., submitted its Subchapter V filing on May 14 with the U.S. Bankruptcy Court for the Northern District of Illinois. The documents show that the company has between $100,000 and $500,000 worth of assets and owes between $500,000 and $1 million.
More bankruptcy:
- Well-known automobile service franchise files for Chapter 11 bankruptcy
- A well-known beer company shuts down operations and declares Chapter 7 bankruptcy.
- A well-known vodka and gin company has filed for Chapter 11 bankruptcy protection.
The company’s debts encompass merchants who provided cash advances, financing firms for their vehicles, suppliers of fuel, and agencies managing toll roads.
According to information from the Federal Motor Carrier Safety Administration's SAFER site, this business manages a total of 70 vehicles and has hired 71 drivers. Their fleet comprises Freightliner Cascadia and Volvo sleepers along with flatbed trailers. They offer cross-state shipping solutions across multiple regions such as Illinois and Oklahoma.
Connected: A significant health care firm has filed for Chapter 11 bankruptcy.
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