Severe economic issues in the trucking industry over the last three years, a period which has been known as the Great Freight Recession, have forced companies to downsize operations, close down their businesses, and in some cases file for bankruptcy.
The most common problems shipping companies have encountered are reduced shipping demand, lower freight rates, and rising costs of labor, fuel, and insurance.
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A flurry of trucking companies filed for Chapter 11 protection on April 7, including Dedham, Mass.-based Best Choice Trucking LLC, which filed for bankruptcy to restructure its debts, which include a large amount of vehicle financing.
Related: Another struggling trucking company files Chapter 11 bankruptcy
Another freight transportation and logistics company, C&C Freight Network, also on April 7 filed for Chapter 11 bankruptcy to restructure its debts, facing economic problems. The debtor indicated that no funds would be available to distribute to unsecured creditors.
Also, small trucking firm, Memphis, Tenn.-based Best Logistics Inc., filed for Chapter 11 bankruptcy on April 7 under a Subchapter V petition in the U.S. Bankruptcy Court for the Western District of Tennessee.
Some troubled companies shut down without bankruptcy
In some cases, trucking companies have shut down but did not file for bankruptcy.
Financial difficulties resulted in huge transportation company LTI Trucking, with about 250 drivers, shutting down its operations on April 2, but it had not filed for bankruptcy at last check.
The Madison, Ill., trucking company, which was established in 2005, had 300 tractors and 575 trailers. The company was a major shipper of products for AB InBev, KraftHeinz, Vlasic, Hershey’s, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee.
Davis Express will shut down trucking operations at the end of April.
Image source: Shutterstock
Davis Express shuts down operations
Finally, Florida-based trucking company Davis Express Inc. revealed on its Facebook page that the company will shut down its business permanently after making its final deliveries on April 23 and returning all trucks to its terminal by April 30.
Related: Another huge auto parts brand files for Chapter 11 bankruptcy
“The last few years have been very challenging for refrigerated trucking as costs continue to rise while rates remain flat or have decreased,”Ā the company’s President and Owner, Jimmy Davis, said in the Facebook post on April 16.
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“Although the company has been unprofitable the past several years, we are not broke, bankrupt, nor do we have any cash flow problems. There are sufficient funds to pay out all employees, vendors, and creditors timely,” Davis said.Ā
The owner of the company said that he is ready to retire and does not wish to wait any longer for the business to turn around or to find a buyer. The founder’s family is no longer interested in continuing the business due to industry challenges, he said.Ā
All employees will be paid every Friday and receive benefits through their June 15 pay period, heĀ said.
Davis Express has 160 trucks and 140 drivers, according to the Federal Motor Carrier Safety Administration SAFER web page. It will lay off its drivers, but will continue to employ mechanics and operate its shop while the company takes equipment out of service and sells assets.
The family-run business filed a 60-day Worker Adjustment and Retraining Notification notice stating that 146 employees will be laid off on June 15, 2025, and the remaining 17 will be laid off on Aug. 31, 2025.
The workers include 117 drivers, 35 office employees, and 11 mechanics.
The Starke, Fla., company, which has operated for 44 years, has been unprofitable since early 2023, and Davis said he doesn’t see any signs of improvement in 2025.
Related: Struggling fashion accessory brand files Chapter 11 bankruptcy
