The damage caused by the Great Freight Recession has been massive over the last three years, characterized by 88,000 trucking companies and 8,000 freight brokerage firms going out of business in 2023, according to data from Freight Caviar.
The industry distress continued into 2024, as the trucking sector had a net loss of about 10,000 carriers in the first half of 2024, TruckInfo.net reported.
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Some of the trucking businesses that shut down also filed for either Chapter 7 liquidation or Chapter 11 reorganization.
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The distressed trucking companies blamed their financial problems on a bad economy, low freight rates, rising costs, and fallout from the Covid-19 pandemic, which created a glut of trucks and drivers in the U.S.
If troubled logistics companies couldn’t find sufficient financing to stay afloat or a buyer for their assets, the final option for many was to close their business and liquidate their assets.
Defunct Illinois shipping company Mighty Move Transportation, which operated with 70 power units and 75 drivers, on Oct. 24, 2024, filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the Northern District of Illinois, facing two breach of contract lawsuits.
Major trucking and shipping services company KAL Freight on Dec. 5, 2024, filed for Chapter 11 protection to wind down failing affiliates and restructure its primary business after finding itself overleveraged and unable to meet its financial obligations.
Auto hauler Jack Cooper shut down operations.
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Jack Cooper closes its business
And now, iconic auto-hauling company Jack Cooper on Feb. 10 informed employees in an email that the firm was closing its operations after two major auto manufacturers ceased doing business with the trucking company, FreightWaves reported.
Related: Major trucking company files Chapter 11 bankruptcy
The family-run business, which has operated for 97 years, shut down after Ford Motor Co. (F)  on Jan. 1, 2025, executed a 30-day termination clause to end its business agreement with the auto logistics company.
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The devastating news from Ford was followed by more troubling news from client General Motors (GM) , which on Feb. 6 instructed its workers to stop loading new cars on Jack Cooper trucks.
“Given the loss of our Ford revenue and General Motors’ unilateral decision, Jack Cooper’s management and Board of Directors are faced with no choice but to ask that our employees not return to work, unless contacted by management,” Jack Copper’s CEO Sarah Amico’s said in an email sent to employees on Feb. 10, FreightWaves said.
The email said a few workers will be asked to remain on the staff to help with the company’s shutdown.
Despite shutting down operations, the company had not filed for bankruptcy as of Feb. 11 and has not indicated whether it intends to file.
Jack Cooper filed for bankruptcy in 2019
Jack Cooper in August 2019 filed for Chapter 11 reorganization to restructure its debts.
The Kansas City, Mo., based company began operations in 1928 as a carrier for General Motors vehicles from the Leeds assembly plant, according to its website. The company expanded over the years through acquisitions of United Transports Inc. in 1984 and Pacific Motor Trucking Co. in 1988.
Further mergers and acquisitions included Active Transport in 2009, DMT Trucking in 2011, and Allied Systems Holdings and North American Auto Transportation Corp. in 2013.
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