Trucking Company Bankruptcies On the Rise
The transportation industry has experienced a multi-year slowdown. This has caused numerous trucking companies to file for bankruptcy. We’ll discuss the implications for shippers and the logistics industry.
What’s Driving Bankruptcy
The trucking industry has been in a prolonged downturn, known as the Great Freight Recession, since 2022. This has led to negative impacts on the industry like low freight volumes and excess capacity.
The tariffs implemented in 2025 are playing a small role in driving bankruptcies as well.
Tariffs have slowed the amount of imports coming into the country because of the uncertainty they create.
Since less imports are coming to the US, demand for domestic shipping has fallen.
With financial pressure bearing down on trucking companies, many have slashed their costs to cope with the slowdown. Unfortunately, not all transportation providers have been able to survive.
2025 Trucking Company Bankruptcy
Bankruptcies amongst trucking companies boomed in 2024, and the trend is continuing in 2025.
Examples of carriers going bankrupt include:
- Montgomery Transport LLC
- VIB Trans, Inc.
- AZA Transportation
- Daniel Trucking International
- Division 2 Truck Co.
- Indian Creek Express
- JAM Trucking
- Lynda Transportation
- ODM Truck
- TJ Trucking Enterprises
- Wendover Transportation
Most of the transportation providers that are going bankrupt are small to medium-sized carriers. Larger companies have felt the pinch caused by the slowdown as well.
What Does This Mean for Shippers?
The bankruptcy of trucking companies negatively affects shippers that rely on their services.
For one, less carriers mean less shipping capacity. While this might not be a problem while freight volumes are low, shippers might struggle to find a carrier when demand rises again.
Lack of capacity can also lead to unreliable coverage for shippers.
Lower freight demand typically means lower rates. However, a smaller overall supply of trucks can lead to higher rates for the remaining carriers.
R+L Global Logistics Remains Steadfast
Despite the slowdown in freight volumes and tariffs straining the market, R+L Global Logistics remains ready to serve its customers. We use a network of small carriers located throughout the country.
We also have warehouses in many of the US’s largest cities. This allows us to provide a variety of storage and fulfillment options. Whatever our customers need, we can find a solution.