The freight trucking industry recession, which has plagued shipping companies since 2022, has resulted in several companies filing for bankruptcy protection, while some others have just shut down their businesses without filing a petition.
The list of shipping companies filing for bankruptcy continues to grow as companies struggle with declining demand, high interest rates and inflation.
Related: Popular retail product maker files for Chapter 11 bankruptcy
Huge shipping company Pride Group operated a fleet of about 20,000 tractor-trailers owned, leased, contracted for service, serviced or securitized and operated 50 owned and leased locations across Canada and the U.S.
It stated as of Aug. 6 that Pride Group's fleet consisted of 1,459 trucks and trailers, 1,383 owned by the debtor.
The debtor filed for protection on March 27, 2024, under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada, seeking to move forward with a going-concern sale or wind-down of Pride Group. It blamed effects from the Covid-19 pandemic for the company's financial crisis.
Mississauga, Ontario-based company subsequently filed for Chapter 15 bankruptcy protection on April 1 in the U.S. Bankruptcy Court for the District of Delaware seeking recognition of a foreign proceeding to protect its assets in the U.S. from creditors.
Austin, Texas-based global e-commerce shipping company DRF Logistics filed for Chapter 11 bankruptcy on Aug. 8 in the Southern District of Texas seeking to wind-down and liquidate its business after reporting annual losses every year since being acquired by Pitney Bowes in 2017.
Related: Mattress Firm rival files for Chapter 11 bankruptcy
Several more shipping companies filed for bankruptcy and shut down operations as well.
Freight forwarder company Boateng Logistics shuttered its business after the firm on Feb. 22 filed for Chapter 7 bankruptcy with plans to liquidate, and 92-year-old trucking company Arnold Transportation Services laid off all of its employees and shut down operations five days before filing for Chapter 7 liquidation on April 30.
U.S. Logistics Solutions, a shipping company owned by private equity firm Ten Oaks Group, on June 21 filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas in Houston, shut down operations, laid off its employees and planned to liquidate its assets.
Another big shipping company has shut down all its operations, but has not yet filed bankruptcy.
Image source: Shutterstock
Midwest Transport ceases operations
Robinson, Ill.-based trucking and logistics company Midwest Transport, which has a contract with the U.S. Postal Service to haul mail, has unexpectedly shut down and will wind down operations, sources familiar with the situation told FreightWaves.
Midwest Transport's regional managers reportedly notified employees by phone late on Sept. 5 that the company was winding down operations. The company, which employs over 480 drivers among about 650 workers, had not yet made a statement about it abruptly ceasing operations and had not filed for bankruptcy protection at last check on Sept. 6.
More bankruptcy stories:
Bankrupt Home Depot rival forced to liquidate remaining stores
- Another popular ice cream brand files for Chapter 11 bankruptcy
- Popular burger chain faces likely Chapter 11 bankruptcy
- Huge shipping company files Chapter 11 bankruptcy to liquidate
The company, which was established in 1980, operates key terminals in Greenup, Ill.; Harmony, Pa.; Jacksonville, Fla.; Memphis, Tenn.; and Tampa, Fla. It is one of the largest transportation contractors with the U.S. Postal Service and has won the Eagle Spirit Award, the Postal Service's highest honor for mail transportation contractors.
A U.S. Postal Service media representative has not immediately responded to a request for comment.
Former drivers were reportedly surprised that the company ceased operations. Many had received notices over the last several months to ensure their logbooks were certified after each run and to watch their speed and improve their on-time performance, FreightWaves reported.
Related: Veteran fund manager sees world of pain coming for stocks
