The condition of the trucking and logistics industry has not improved after three years of the Great Freight Recession.
Shipping companies continue to face financial distress and file for Chapter 11 protection to try to reorganize and stay in business.
Industry experts warn optimistic analysts, who believe conditions are improving, to be careful with their proclamations.
Great Freight Recession is not over
“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.
Recent financial results support Roush’s statement.
17 trucking companies file bankruptcy in second quarter
At least 17 trucking and logistics companies filed for bankruptcy in the second quarter of 2025 alone, Equipment Finance News reported.
Related: Iconic greeting cards chain files for Chapter 11 bankruptcy
While dry van truckload contract rates were flat in the first half of 2025 from the same period a year ago, as FreightWaves reported, 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.
Freight demand declines
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.
The decline is unseasonal, according to the State of the Industry Report, since demand slowly ramps up in the beginning of the second quarter in anticipation of summer inventories and produce deliveries.
Image source: Shutterstock
H5 Transport files for bankruptcy
The Great Freight Recession has led the financially challenged trucking and logistics company H5 Transport LLC to file for Chapter 11 bankruptcy protection to reorganize its business and restructure debt.
The Oakes, N.D., shipping company filed its Subchapter V petition in the U.S. Bankruptcy Court for the District of North Dakota in Fargo on Sept. 16, listing up to $1 million in assets and $1 million to $10 million in liabilities, BankruptcyObserver.com reported.
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Among the company’s debt is about $1.4 million in unsecured debt owed to Starion Bank for seven commercial vehicles, an insurance package, a computer monitor, and various office supplies, Equipment Finance News reported.
Other trucking companies that have filed for bankruptcy in the third quarter of 2025 are nationwide freight hauling company Daniel Trucking International Inc., which filed for Chapter 11 bankruptcy to reorganize its business on July 7.
Also, Orlando, Fla.-based trucking and logistics company Xtreme Quality Logistic LLC and its affiliate Winstar Investments LLC filed their Subchapter V petitions on Aug. 15.
Trucking company bankruptcies in the third quarter:
- Daniel Trucking International, July 7.
- Xtreme Quality Logistic LLC and affiliate Winstar Investments LLC, Aug. 15.
- H5 Transport LLC, Sept. 16.
H5 Transport, which was established in 2018, hauls general freight, grain, feed, hay, dry bulk commodities, beverages, and paper products, according to the Federal Motor Carrier Safety Administration SAFER website.
Products shipped by H5 Transport:
- General freight
- Grain
- Feed
- Hay
- Dry bulk commodities
- Beverages
- Paper products
The company, which operates facilities in Oakes, N.D., and Bradenton, Fla., focuses on core lanes of North Dakota/South Dakota and Illinois/Indiana, with expansion routes to Washington and California. It ships throughout the Midwest and coast-to-coast, according to its website.
The transportation company’s drivers haul products for various top-tier customers, including 3M, Whirlpool, and Bayer.
H5 Transport’s top customers:
- 3M
- Whirlpool
- Bayer
The debtor owns 10 power units and currently employs three drivers, according to SAFER. It also hires owner-operators, its website says.
H5 offers full truckload and less-than-truckload services, with refrigerated freight solutions. It has custom logistics support, including dedicated dispatch and driver management, with quick onboarding and streamlined billing, flexibility, freight visibility, and fast response times.
Related: 75-year-old equipment sales company files Chapter 11 bankruptcy
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