The Great Freight Recession has wreaked havoc on trucking, shipping, and logistics companies since about May 2022, with thousands of companies filing for bankruptcy, going out of business, or both.
About 88,000 trucking companies and 8,000 freight brokerage companies went out of business in 2023, according to Freight Caviar.
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The trucking business did not improve much in 2024 as data from the Federal Motor Carriers Association shows that the industry had a net loss of about 10,000 motor carriers in the first half of 2024, TruckInfo.net reported.
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Statistics from the remainder of the year have not yet been revealed.
Among the companies that filed for Chapter 11 bankruptcy in 2024 was defunct Illinois shipping company Mighty Move Transportation, which operated with 70 power units and 75 drivers.
The trucking company on Oct. 24 filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the Northern District of Illinois, facing two breach of contract lawsuits.
About a week later, Miami, Fla.-based Star Transportation PA and five affiliates filed for Chapter 11 bankruptcy on Nov. 1 to reorganize their businesses.
The filing came after one of the company’s lenders issued an order to repossess 47 of its trucks for which it had provided financing.
Creditors force companies to file bankruptcy
Next, major trucking and shipping services company KAL Freight on Dec. 5 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.
Also, struggling trucking company Miranda Logistics Enterprise and an affiliate finished the year facing legal issues as they filed for Chapter 11 protection on Dec. 17 to reorganize after defaulting on a factoring agreement with their bank.
The Los Angeles-based shipping company and its affiliate Grit & Gravel Inc. filed their petitions in the U.S. Bankruptcy Court for the Central District of California to stop collection actions against the companies that crippled their ability to collect payments from their customers.
Miranda Logistics operates 40 power units with 25 drivers.Â
Bankruptcy filings didn’t end with the close of 2024. Several trucking companies have already filed Chapter 11 petitions in the first month of 2025.
Wynne Transportation Holdings on Jan. 10 filed for Chapter 11 bankruptcy seeking to restructure its debts after losing an arbitration judgment that awarded over $32 million to a transportation services subcontractor, Getz Transport Solutions.
Flame Freight has become a victim of the Great Freight Recession.
Image source: Shutterstock
Flame Freight files for Chapter 11 bankruptcyÂ
Finally, major trucking and logistics company Flame Freight on Jan. 24 filed for Chapter 11 protection seeking to reorganize its business.
Related: Another troubled shipping company files for Chapter 11 Bankruptcy
The Auburn, Wash.-based shipping company filed its petition in the U.S. Bankruptcy Court for the Western District of Washington in Seattle, listing $1 million to $10 million in assets and liabilities.
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The debtor indicated in its petition that no funds would be available to distribute to unsecured creditors after administrative expenses.
Flame’s largest unsecured creditors include vehicle and equipment financing companies Alliance Funding, owed over $375,000; Crossroads Finance, owed over $372,000; and Midland State Bank, owed over $348,000.
Flame Freight, which was founded in 2019 by U.S. veteran Ken Pannu, operates a fleet of over 40 trucks and 70 trailers, offering less-than-truckload and full truckload services, intermodal transportation, heavy haul and oversize loads, cross-boarder and international shipping, expedited and time-critical deliveries, and logistics and supply chain management.
The company also employs an in-house maintenance team for regular checks to adhere to the highest safety and efficiency standards, according to its website.
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