Industry Overview - The freight industry is experiencing a significant recession, with many trucking companies permanently shutting down operations and filing for bankruptcy. In the third quarter of 2025, approximately 21 firms filed for bankruptcy, following 20 companies in the second quarter [1]. Company Closures - J.B. Hunt Transport Inc. closed its facility at the Home Depot Distribution Center in Lithonia, Georgia, on October 27, 2025. Additionally, 10 Roads Express, a U.S. Postal Service contractor, plans to cease all operations by the end of January 2026 without filing for bankruptcy [2]. - Standard Forwarding Freight, a less-than-truckload shipping company operating in 16 states, closed its business on December 29, 2025, and terminated employees, stating it would suspend day-to-day operations [7][8]. Layoffs - 10 Roads Express submitted a Worker Adjustment and Retraining Notification on December 1, indicating that approximately 2,000 workers would be laid off, with a final layoff date set for January 30, 2026 [3]. Company Statements - 10 Roads Express cited significant headwinds impacting the transportation industry as the reason for winding down operations, emphasizing the challenges faced despite employee dedication [5][6].

Core Insights - Two Minnesota-based trucking companies, MinStar Transport and Transport Design Inc., have ceased operations, resulting in approximately 200 drivers losing their jobs [1][2][3] - The closures are part of a broader trend of carrier failures in the trucking industry, which has been experiencing a downturn known as the Great Freight Recession since March 2022 [2][7] Company Overview - Both companies were part of True North Equity Partners' portfolio, which focuses on lower-middle-market investments in transportation [4] - True North acquired Transport Design in March 2020 and MinStar Transport in October 2022, expanding its holdings in the trucking sector [4][5] - At the time of the MinStar acquisition, True North's trucking portfolio was projected to generate $220 million in annual revenue [5] Financial Pressures - True North Transportation Holding Company is currently involved in a lawsuit alleging breach of loan agreements, which may indicate financial difficulties that could lead to further operational shutdowns [6] - The trucking industry has seen a significant number of closures and bankruptcies in 2025, highlighting ongoing challenges within the sector [7]

Core Insights - The closure of James R. Smith Trucking, a family-owned business, highlights the severe challenges facing the freight market, marking another bankruptcy in a troubling trend within the industry [1][5][6] Company Overview - James R. Smith Trucking, founded in 1955, operated a fleet of 48 trucks and employed 50 drivers, with an average truck age of 10 years [3] - The company had a 24% out-of-service rating, indicating operational difficulties likely due to its aging fleet and insufficient resources for new equipment [3] Industry Context - The freight market is experiencing a "Great Freight Recession," characterized by a significant capacity glut, with active trucks increasing by 19% over the past five years [4] - The influx of new entrants, often skirting legal standards and offering below-market wages, has created an unsustainable competitive environment, adversely affecting established carriers [4] - Alabama's trucking sector, which employs 1 in 13 workers in the state, is facing instability due to aging fleets and market pressures [4] Bankruptcy Trends - The ongoing adverse conditions in the freight market have led to a surge in trucking bankruptcies, with James R. Smith Trucking being one of many affected [5] - The combination of a capacity glut, inadequate driver training, and rising costs has severely impacted profit margins, pushing long-standing operators out of business [5]

Industry Overview - The trucking industry has been experiencing a prolonged downturn known as the Great Freight Recession, characterized by reduced shipping demand, lower freight rates, and rising operational costs, which have adversely affected revenues and profits [1] - Long-haul truckload demand decreased by 25% in the first half of 2025, with a shift towards short-haul delivery methods for the final leg of freight movement [1] Bankruptcy and Closures - The freight recession continues, with businesses facing challenges leading to out-of-court restructurings or bankruptcy filings; 21 bankruptcy petitions were filed in Q3 2025, up from 20 in Q2 2025 [2] - Five trucking companies filed for bankruptcy in the last week of Q3 2025, including Precision Express, L.S. Trucking, and GMB Transport on September 23, WBK Transport on September 26, and Sky Rock Trucking on September 29 [2][8] - Some major trucking companies have ceased operations without filing for bankruptcy [4] Company-Specific Developments - J.B. Hunt Transport Inc. closed its distribution center at the Home Depot Distribution Center in Lithonia, Georgia, on October 27, 2025, as part of a federal Worker Adjustment and Retraining Notification Act notice [5] - 10 Roads Express, a U.S. Postal Service trucking contractor, announced plans to shut down all operations by the end of January 2026 due to significant industry headwinds [6][9] - 10 Roads Express reported that approximately 2,000 workers will be laid off as part of its wind-down process, with a final layoff date set for January 30, 2026 [7]

Company Overview - VIB Trans, Inc. has filed for Chapter 11 bankruptcy protection amid the Great Freight Recession, marking a significant downturn in the trucking industry [1][2] - The company operates a fleet of 29 trucks and employs 34 drivers, having started its operations in 2018 [1] Industry Challenges - The trucking sector is experiencing a turbulent period, with trucking volumes dropping by 18% year-over-year due to a collapsing industrial economy [2] - Over 200,000 non-domiciled commercial driver's licenses have been issued since 2019, leading to an influx of more than 310,000 trucks and creating excess capacity in the market [3] - This overcapacity has resulted in a depressed rate environment, where new entrants are squeezing out veteran companies [4] Economic Impact - The expiration of SNAP funding is anticipated to further destabilize the market, as government assistance has been a crucial driver of freight demand [4] - Recent events include a major flatbed operator ceasing operations, resulting in 1,000 job losses, and another Alabama-based trucking firm filing for Chapter 7 liquidation, cutting an additional 1,000 jobs [5] - Smaller carriers like VIB Trans, particularly those with fleets under 50 trucks, are especially vulnerable to elevated operating costs and low demand [5]

Core Insights - The Great Freight Recession continues to impact the trucking industry, with bankruptcy filings increasing in the third quarter of 2025 compared to the second quarter [1] - A total of 21 bankruptcy petitions were filed by freight carriers in Q3 2025, up from 20 in Q2 2025 [1] - The downturn in the trucking sector is worsening, with long-haul truckload demand dropping by 25% in the first half of 2025 [4] Bankruptcy Filings - Five trucking companies filed for Chapter 11 bankruptcy in the last week of September 2025, including Precision Express, L.S. Trucking, GMB Transport, WBK Transport, and Sky Rock Trucking [3][7] - Atlantic Overseas Express Inc., a global freight forwarder, filed for Chapter 11 bankruptcy on October 24, 2025, with assets between $500,000 and $1 million and liabilities between $100,000 and $500,000 [8] Impact on Major Companies - J.B. Hunt Transport Inc. has been affected by the freight recession, closing its distribution facility at the Home Depot Distribution Center in Lithonia, Georgia, and notifying 74 employees of the closure [5][6] - The ongoing recession is also impacting major shipping and logistics companies globally, indicating a broader industry challenge [6]

Core Insights - The American trucking industry is currently facing significant challenges due to an economic crisis and declining highway safety standards [1] - The narrative of a truck driver shortage has been largely misrepresented, particularly during the COVID-19 pandemic [1][2] Background on Truck Driver Shortage - The American Truck Association (ATA) has promoted the idea of a chronic truck driver shortage, especially during the COVID-19 pandemic, leading to policy changes aimed at increasing the driver workforce [2] - These policy changes included lowering standards for commercial driver's license (CDL) qualifications and relaxing training requirements [2] Safety Consequences - Regulatory changes resulted in an influx of inadequately trained drivers, many lacking proper knowledge of road regulations and language skills, creating safety risks on highways [3] - The presence of inexperienced drivers operating older, poorly maintained vehicles has become more common, leading to deteriorating safety standards [4] Economic Impact - The trucking industry is experiencing the "Great Freight Recession," the most severe economic downturn in its history, exacerbated by an influx of cheaper labor [5] - As economic pressures increased, carriers began hiring drivers willing to work for lower wages, leading to a competitive disadvantage and further industry-wide issues [6]

Industry Overview - The trucking and logistics sector has experienced significant economic challenges over the past three years, leading to the permanent shutdown of thousands of shipping companies [1] - The number of motor carriers with operating authority decreased by 3.7% in 2024, resulting in 339,220 carriers, which is 13,000 fewer than in 2023 [1][9] - Despite the challenges, the industry saw a 13% increase in newly registered carriers, totaling 148,485 in 2024, which is over 25,000 more than in 2023 [2] Economic Challenges - The industry is still grappling with the Great Freight Recession, which has persisted for three years, and experts indicate that the situation is not yet resolved [2][3] - At least 20 trucking and logistics companies filed for bankruptcy in the second quarter of 2025, with the third quarter on track to match these results, as 16 firms had filed by mid-September [4] Company Actions - Major trucking companies have managed to navigate the economic difficulties by closing unprofitable facilities while maintaining operations at profitable locations [5] - J.B. Hunt Transport Inc. announced the closure of its facility at the Home Depot Distribution Center in Lithonia, Georgia, effective October 27, 2025, notifying 74 employees [6][7] - Epic Lightning Fast Service LLC, a smaller trucking operation, plans to shut down all operations permanently on October 31, 2025, resulting in the layoff of all 116 workers [10]