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 anticipated to continue should the Trump Administration proceed with proposed tariffs targeting trading partners abroad.
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Approximately 88,000 trucking companies along with around 8,000 freight brokerage firms stopped operations in 2023, as indicated by Freight Caviar statistics. Data from TruckInfo.net showed that during the first half of 2024, the trucking industry experienced a net reduction of roughly 10,000 carriers compared to last year.
Connected: Leading freight firm seeks Chapter 11 bankruptcy for restructuring purposes
The American Trucking Associations remained optimistic about the sector’s growth in 2025, according to their yearly freight prediction published in January, which anticipated an increase of 1.6% in truck traffic for this year following a downturn over the past 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.
Some have ceased operating their businesses without filing for bankruptcy, such as Michigan-based trucking company Equity Transportation Co. Inc., which had 100 drivers and 109 power units. The company laid off all of its drivers and ceased operations in March, according to several sources with knowledge of the situation, FreightWaves reported.
A major transportation 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 choice of closing down the company.
The Florida-based trucking firm Davis Express Inc., which operates 160 trucks and employs 140 drivers, announced on their Facebook page that they would be ceasing operations indefinitely following their last deliveries on April 23, with plans to have all vehicles back at the depot by April 30.
The head of the firm mentioned he plans to step down and has decided against waiting further for the enterprise to improve or for a potential purchaser to appear. He stated that the kin of the founding member have lost interest in maintaining the operation because of difficulties within the sector.
Trucking companies file for bankruptcy
Major trucking companies with dozens of drivers, tractors, and trailers have also filed for bankruptcy in the first half of the year, including transportation and logistics company Balkan Express and its affiliate Balkan Logistics filed for Chapter 11 bankruptcy to restructure their debts on April 30.
Balkan Express operates 159 power units and employs about 166 drivers who ship general freight, including beverages.
And three trucking companies that are not affiliated filed for Chapter 11 bankruptcy on April 7, 2025, including C&C Freight Network of Braselton, Ga.; Dedham, Mass.-based Best Choice Trucking LLC, and Memphis, Tenn.-based Best Logistics Inc., which all filed for bankruptcy to restructure their debts.
AZA Transportation has filed for bankruptcy.
Ultimately, the major economic downturn known as the Great Freight Recession has led to yet another logistics firm falling apart, with AZA Transportation Inc. now declaringChapter 11 bankruptcyaimed at restructuring their operations.
Related: 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 car repair business files for Chapter 11 bankruptcy as a franchise
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- A well-known vodka and gin company has filed for Chapter 11 bankruptcy protection.
The company’s debts encompass merchant cash advance providers, financing firms for their vehicles, fuel suppliers, and toll road administrations.
The company operates 70 trucks and employs 71 drivers, according to the Federal Motor Carrier Safety Administration's SAFER website, consisting of a fleet of Freightliner Cascadia and Volvo sleeper tractors and flatbed trailers. The company provides interstate transportation services in several states, including Illinois and Oklahoma.
Related: Another major healthcare company files Chapter 11 bankruptcy
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