40-year-old trucking company closes, files Chapter 7 bankruptcy

The Great Freight Recession led to dozens of trucking, logistics, and shipping companies filing for Chapter 11 bankruptcy extortion successful 2025 to reorganize their businesses, restructure their indebtedness obligations, and enactment successful business.

Companies blamed reduced shipping demand, little freight rates, and rising labor, fuel, and security costs for the diminution successful revenues and profits.

In immoderate cases, bankrupt trucking companies were incapable to reorganize successful Chapter 11 and enactment successful business.

Many companies that couldn't restructure indebtedness and lick their fiscal problems liquidated their assets successful Chapter 11, which gives the debtor much power implicit the organisation of assets.

In precise terrible cases, debtors filed for Chapter 7 bankruptcy to liquidate their assets. In this bankruptcy method, a Chapter 7 trustee manages the liquidation of the assets, taking power distant from the debtor.

Freight companies filed 20 bankruptcy petitions successful the 2nd 4th of 2025 and 21 bankruptcy petitions successful the 3rd quarter, Equipment Finance News reported.

Final fourth-quarter statistic person not yet been released astatine past check, but trucking companies filed 12 petitions successful October and six successful November 2025.

Among the large Chapter 11 filings successful 2025 was 102-year-old Port Elizabeth Terminal & Warehouse Corp., a shipping, logistics, and warehousing company, which filed for Chapter 11 bankruptcy connected Nov. 14 to reorganize its concern and restructure its debts.

Several trucking companies person already marched to bankruptcy tribunal successful 2026, including the largest successful the archetypal 2 months, STG Logistics Inc., which filed for Chapter 11 extortion connected Jan. 12 to restructure astir $1.2 cardinal successful indebtedness and question a merchantability of its assets.

The filings kept coming successful February, with Dallas-based Newkirk Logistics Inc. filing connected Feb. 4, Kansas-based Mast Trucking Inc. declaring connected Feb. 10, and Tacoma, Wash., freight institution Bee & G Enterprises LLC filing connected Feb. 14.

One of the astir terrible bankruptcies this year, however, was 40-year-old Drayage trucking institution T.G.S. Transportation Inc.'s Chapter 7 liquidation filing connected Feb. 13.

Fresno, Calif., based T.G.S. Transportation filed its petition successful the U.S. Bankruptcy Court for the Eastern District of California, listing $50,000 to $100,000 successful assets and $1 cardinal to $10 cardinal successful liabilities, according to What Now.

The bankruptcy filing came astir six months aft the debtor, successful a LinkedIn message, closed its concern successful July 2025.