The Nice Freight Recession has been difficult for trucking and logistics firms because it started in early 2022.
Transport firms have confronted decreased delivery demand, decrease freight charges, and rising prices of labor, gas, and insurance coverage, which have impacted revenues and income.
Corporations closes with out submitting chapter
In some instances, trucking firms solely wanted to shut down with out submitting for chapter, akin to U.S. Postal Service trucking contractor 10 Roads Specific, which in December revealed plans to TheStreet that it will finish its mail hauling enterprise and shut down all operations by the tip of January 2026.
Additionally, less-than-truckload delivery firm Normal Forwarding Freight, which operated in 16 states, closed its enterprise on Dec. 29, terminating workers.
The East Moline, Unwell.-based trucking firm notified workers on Dec. 28 that they have been terminated and that the corporate was completely closing, in response to workers, FreightWaves reported.
Freight firms filed 21 chapter petitions within the third quarter of 2025 in comparison with 20 filed within the second quarter, Tools Finance Information reported. Fourth quarter statistics had not been launched but finally examine.
Lengthy-haul truckload demand plummeted by 25% within the first half of 2025, with trucking changing into extra of a short-haul supply methodology for the ultimate leg of freight motion, in response to the Lengthy Outbound Tender Quantity Index, FreightWaves reported.
Nevertheless, the trucking business may start to recuperate in 2026, in response to some business specialists. Doug Waggoner, CEO of Echo International Logistics, is predicting enchancment within the trucking business, seemingly after the primary quarter of 2026, he instructed Logistics Administration.
“I think we’re at least in the late stages and maybe starting to come up,” Waggoner mentioned. “But traditionally, January and February are the slowest months of the year.”
Waggoner mentioned the business dies within the second half of December via February and begins to choose up mid-March.
“I’m pretty bullish that 2026 is going to be better,” he mentioned.
STG Logistics Inc., which filed for Chapter 11 chapter, ships its containers by rail.
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STG Logistics recordsdata for chapter
An business turnaround might assist large trucking and logistics firm STG Logistics Inc., which has struggled within the Nice Freight Recession for over three years and filed for Chapter 11 chapter safety to restructure about $1.2 billion in debt and search a sale of its property.
The Dublin, Ohio-based delivery firm and 64 associates filed their petition within the U.S. Chapter Courtroom for the District of New Jersey on Jan. 12, itemizing about $1.16 billion in funded debt obligations, and $1 billion to $10 billion in property and liabilities in its petition, in response to Epiq International.
STG’s largest unsecured collectors embrace Union Pacific Railroad, owed over $13.4 million; CSX Worldwide, owed over $1.4 million; Kansas Metropolis Southern de Mexico SA de CV, owed over $1.3 million; Private HR Providers LLC, over $1.2 million; APF-FBO Vitality Staffing, owed over $1 million; and Selective Personnel Inc., owed over $957,000.
STG largest unsecured collectors:
- Union Pacific Railroad, $13.4 million debt.
- CSX Worldwide, over $1.4 million debt.
- Kansas Metropolis Southern de Mexico SA de CV, over $1.3 million debt.
- Private HR Providers LLC, over $1.2 million debt.
- APF-FBO Vitality Staffing, over $1 million debt.
- Selective Personnel Inc., over $957,000 debt.
The debtor solely had about $34 million in unrestricted money available when it filed for chapter, which is inadequate to fund the chapter case, court docket papers mentioned.
“Today’s announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history,” STG CEO Geoff Anderman mentioned in a press release.
“We are confident that leveraging the Chapter 11 process will best position the business for long-term growth and success,” Anderman mentioned.
STG Logistics seeks $150 million DIP mortgage
STG Logistics entered right into a restructuring help settlement with its fairness sponsors and prepetition lenders to cut back its debt obligations and supply $294 million in debtor-in-possession financing to fund its chapter case, which incorporates $150 million in new cash and a roll-up of $144 million in debt obligations.
The trucking and logistics firm, like many within the business, skilled large progress throughout the Covid-19 pandemic of 2020, when income elevated dramatically and peaked in 2021.
The business’s fortunes shifted with the onset of the Nice Freight Recession in March 2022, because the U.S. floor transportation business has confronted one in all its deepest and longest downturns in historical past for over three years, with the collapse of freight charges.
Nice Freight Recession strains STG efficiency
“Softening freight demand, along with lingering excess capacity in the market, has led to a declining rate environment and further strained STG’s performance for the past three years,” STG Chief Monetary Officer Tyler Holtgreven mentioned in a chapter declaration.
“The company’s consolidated revenues decreased by $65 million between 2023 and 2024 and are projected to decline by $162 million between 2024 and 2025,” Holtgreven wrote.
The debtor mentioned that tariffs started to impression the freight and logistics business in the beginning of 2025.
“Tariffs began to shift on a moment’s notice, ranging anywhere from 10 to 145 percent depending on the country from which goods are imported to the U.S.,” in response to Holtgreven.
Tariffs impression firm’s quantity
Resulting from fluctuating tariffs, import volumes have been forecasted to say no by roughly 14% year-over-year within the second half of 2025. SGT’s quantity was anticipated to say no by 7% in 2025 in comparison with 2024, largely from tariff-driven import declines, the declaration mentioned.
Rising inflation and better insurance coverage charges additionally contributed to the corporate’s monetary misery.
The business additionally faces an enormous lack of enterprise from giant shippers internalizing trucking operations. Corporations, akin to Greenback Basic, Chick-fil-A, and House Depot, have launched personal in-house fleets that reduce into the trucking business.
Extra bankruptcies
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- Main well being companies supplier recordsdata for Chapter 11 chapter
Non-public fleets now deal with an all-time excessive of 70% of outbound shipments within the U.S., the declaration mentioned.
The 41-year-old trucking firm operates a fleet of about 15,000 home intermodal containers, 3,300 chassis, about 2,150 drivers, and maintains about 4.5 million sq. ft of warehouse house, in response to court docket papers.
Main firms with in-house trucking operations:
- Greenback Basic
- Chick-Fil-A
- House Depot
Associated: Favourite informal restaurant chain recordsdata Chapter 11 chapter
