The Great Freight Recession led to dozens of trucking, logistics, and shipping companies filing for Chapter 11 bankruptcy protection in 2025 to reorganize their businesses, restructure their debt obligations, and stay in business.

Companies blamed reduced shipping demand, lower freight rates, and rising labor, fuel, and insurance costs for the decline in revenues and profits.

In some cases, bankrupt trucking companies were unable to reorganize in Chapter 11 and stay in business.

Filing Chapter 7 or Chapter 11 bankruptcy

Many companies that couldn’t restructure debt and solve their financial problems liquidated their assets in Chapter 11, which gives the debtor more control over the distribution of assets.

In very severe 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 control away from the debtor.

Freight companies filed 20 bankruptcy petitions in the second quarter of 2025 and 21 bankruptcy petitions in the third quarter, Equipment Finance News reported.

Final fourth-quarter statistics have not yet been released at last check, but trucking companies filed 12 petitions in October and six in November 2025.

102-year-old company filed bankruptcy

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

Several trucking companies have already marched to bankruptcy court in 2026, including the largest in the first two months, STG Logistics Inc., which filed for Chapter 11 protection on Jan. 12 to restructure about $1.2 billion in debt and seek a sale of its assets.

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

40-year-old T.G.S. Transportation Inc. files for Chapter 7 bankruptcy liquidation after closing down its operations in July 2025.

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TGS Transportation files Chapter 7

One of the most severe bankruptcies this year, however, was 40-year-old Drayage trucking company T.G.S. Transportation Inc.’s Chapter 7 liquidation filing on Feb. 13.

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

The bankruptcy filing came almost six months after the debtor, in a LinkedIn message, closed its business in July 2025.

Firm closes after 40 years in business

“It is with profound sadness and a heavy heart that T.G.S. announces the official closure of its operations, effective July 31, 2025. After four decades of dedicated service to the transportation industry, we will be parking our trucks for good,” the company said in a LinkedIn message posted by co-owner Peter Schneider.

More bankruptcies:

  • 73-year-old family diner franchisee files Chapter 11 bankruptcy
  • More troubled regional airlines file for Chapter 11 bankruptcy
  • Major department store brand liquidates in Chapter 11 bankruptcy

The company said its decision was difficult and influenced by the challenging market conditions facing the trucking industry.

“From the bottom of our hearts, we thank you all for everything we have built together over the past 40 years. TGS signs off with deep appreciation, love, and immense pride,” the message concluded.

T.G.S. operated interstate shipping with 20 trucks and 20 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER filing.

The company hauled general freight, metal sheets, coils, and rolls, building materials, machinery and large objects, fresh produce, liquids and gases, grain, feed, hay, meat, chemicals, dry bulk commodities, refrigerated food, beverages, paper products, and agriculture and farm supplies.

2025 quarterly bankruptcy totals

  • Second Quarter 2025, 20 bankruptcies
  • Third Quarter 2025, 21 bankruptcies
  • Fourth Quarter 2025, 18 bankruptcies (October, November)

Related: Troubled office furniture company files for Chapter 11 bankruptcy