The Great Freight recession, which has hampered the trucking industry over the last three years, forced dozens of shipping companies to file for bankruptcy protection.
At least 17 trucking and logistics companies filed for bankruptcy in the second quarter of 2025 alone, Equipment Finance News reported.
Dry van truckload contract rates were flat from the same period a year ago, FreightWaves reported.
Trucking demand plummets
Trucking spot rates, which shippers pay carriers for a one-time shipment, however, finished the first half below year-over-year levels.
Long-haul truckload demand reportedly plummeted by 25% in the first half of 2025, with trucking becoming more of a short-haul delivery method for the final leg of freight movement.
Key trucking company distress data:
- Second quarter 2025 bankruptcy filings: 17.
- Long-haul truckload demand: declines 25%.
Overall freight demand faced an unseasonal decline in April 2025, “likely presaging further deterioration in the coming months,” according to Ryder and FreightWaves’ State of the Industry Report released on April 23.
“News Flash: The three-year-long Great Freight Recession is NOT over. The leading indicators that caused FreightWaves to declare the end of the GFR in November 2024, and the resulting carrier optimism is now in the rearview mirror,” David Roush, president of accounting firm KSM Transport Advisors, said on the company’s website in March.
Related: Troubled national furniture retailer files Chapter 11 bankruptcy
The decline is unseasonal, according to the State of the Industry Report, since the beginning of the second quarter usually sees demand slowly ramp up in anticipation of summer inventories and produce deliveries.
The combination of economic challenges has led several more trucking companies to file for bankruptcy in the third quarter.
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Xtreme Quality Logistic files for bankruptcy protection
Orlando, Fla.-based trucking and logistics company Xtreme Quality Logistic LLC and its affiliate Winstar Investments LLC filed for Chapter 11 bankruptcy protection, seeking to reorganize their businesses and restructure debt.
The freight transportation companies filed their Subchapter V petitions in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 15, with Xtreme Quality Logistic listing $100,000 to $500,000 in assets and liabilities and Winstar listing $50,000 $100,000 in assets and $500,000 to $1 million in debts.
Debtor assets and liabilities:
- Xtreme Quality Logistic: $100,000 to $500,000 assets, $100,000 to $500,000 liabilities.
- Winstar Investments: $50,000 to $100,000 in assets, $500,000 to $100,000 in liabilities.
Winstar’s petition listed creditors, including Diesel Direct LLC, Roadex Solutions LLC, and National Funding Inc.
Winstar’s petition indicated that funds would be available for distribution to unsecured creditors after the reorganization process, RK Consultants reported.
Xtreme Quality Logistic’s owners, who have 40 years of experience in the trucking industry, operate with 35 power units and 35 drivers, according to the Federal Motor Carrier Safety Administration SAFER website.
The shipping company carries general freight, beverages, and paper products, according to SAFER.
More bankruptcy:
- Unusual bar and restaurant chain files Chapter 7 bankruptcy
- Major healthcare company files Chapter 11 bankruptcy, seeks sale
- Home improvement retail supplier files for Chapter 11 bankruptcy
Other trucking companies have filed for bankruptcy in the third quarter.
Daniel Trucking International also filed Chapter 11
Nationwide freight hauling company Daniel Trucking International Inc. filed for Chapter 11 bankruptcy to reorganize its business on July 7.
Daniel Trucking International, founded in 2005, operates with 58 trucks, according to its website, and 59 drivers, according to the Federal Motor Carrier Safety Administration SAFER website.
The company ships to 48 contiguous states, operating numerous Freightliner Cascadia models, including refrigerated trucks, Great Dane trailers, and other commercial vehicles.
Some shipping companies have shut down operations without filing for bankruptcy.
Deliver It shut down without filing bankruptcy
Anaheim, Calif.-based shipping company Deliver It, which offered next-day parcel delivery service and business-to-business customer shipping to over 45 million consumers, abruptly shut down all operations on July 7.
The regional shipping company operated in California, Arizona, Nevada, Oregon, Washington, and Texas, according to its LinkedIn page and website.
Also, Fresno, Calif.-based drayage and logistics company TGS Transportation Inc. shut down its facilities after 40 years in business on July 31, but did not file for bankruptcy.
Related: Troubled trucking company closes after 40 years, no bankruptcy
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