The Great Freight Recession has hit the trucking industry hard for the last three years. Rising costs and stagnant income have led a lot of companies to go out of business. Some of them filed for bankruptcy protection while others had operational reasons. Starting this April, some of the big names have already made it to the bankruptcy filing list.
Highlights
- The trucking industry has seen a devastating recession in recent years, forcing some companies out of business.
- Davis Express Inc. announced on April 16, 2025, that it will shut down by April 23.
- Other companies like Best Logistics Inc., C&C Freight Network, etc., filed for bankruptcy at the start of April.
Trucking Company, Davis Express Inc., Announced Shutdown
Jimmy Davis, president and owner of Davis Express Inc., took to his Facebook page on April 16, 2025, to announce the shutdown of his trucking business. Davis highlighted the issues faced by the business since 2023. The costs kept on rising while the return rates did not show any improvement.
The business has not brought any profit since 2023, and the condition does not seem to improve even in recent times. So, the owner announced his retirement after being in the trucking industry for about 50 years. Davis Express has completed 44 years, and the next generation of the owner does not wish to join the business because of its challenging nature. He did not want to wait for anyone to buy the company; therefore announced the closure.
Last deliveries will be made by Davis Express through April 23, and the trucks will return to the Starke terminal by April 30. In his post, Davis also mentioned that they have not gone bankrupt. All the employees will be paid till June 15, 2025. Till the equipment is sold, mechanics will be retained to operate the shop.
Several Trucking Companies Announced Unprecedented Shutdowns in Recent Years
The trucking industry has been observing the Great Freight Recession for the last three years. This is due to a reduced demand and lower freight rates. In contrast, the cost of labor, fuel, and other capital expenditures has increased. Due to this, companies reduced operations, some filed for bankruptcy, while others just closed their business.
According to freight industry data, in 2023, approximately 88,000 trucking companies and 8,000 freight brokerage firms ceased operations.
The recent company that went out of business without filing for bankruptcy, just like Davis Express, is LTI Trucking, which ceased operations on April 2. More companies are planning to terminate their operations, and they filed for bankruptcy this month.
Rise in Bankruptcy Filings in the Trucking Industry
A significant number of companies have entered bankruptcy protection in recent times. Three notable companies filed for bankruptcy on April 7. The first is Best Choice Trucking LLC. It is a Dedham-based company that wants to restructure its debts, including vehicle financing, with the help of Chapter 11 bankruptcy protection.
Next is the C&C Freight Network. It is a transportation and logistics company with economic problems in front of it. Chapter 11 bankruptcy will help in restructuring the debts, while there will be nothing for the unsecured creditors.
The U.S. Bankruptcy Court for the Western District of Tennessee also received a Chapter 11 bankruptcy request under Subchapter V. It was filed by Memphis-based Best Logistics Inc.
The situation over the last few years and till now in 2025 has not shown any significant improvement. In fact, things have become difficult for trucking businesses, due to which a lot of them have already ceased operations, and the rest are continuing to do so. This has affected both business owners and employees.
However, there are speculations that after years of decline, in 2025, truck volume might grow 1.6%. Despite this prediction by the American Trucking Associations, the ground reality depicts difficulties only. No one knows what will happen to the trucking industry in the long run!
