Thousands of trucking companies over the last two years have shut down operations for a variety of economic reasons.
About 88,000 trucking companies and 8,000 freight brokerage firms ceased operating in 2023, Freight Caviar data revealed, and the trucking sector was further reduced by about 10,000 carriers in 2024, TruckInfo.net reported.
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Last year, a significant trucking company with 75 drivers and 70 power units, Mighty Move Transportation of Illinois, filed for Chapter 7 liquidation in October 2024 and went out of business, as it faced two breach of contract lawsuits.
Related: Huge auto parts brand files for bankruptcy liquidation
All litigation is subject to an automatic stay during bankruptcy cases.
The American Trucking Associations is confident that the industry will improve in 2025 as it projected in its annual freight forecast released in January that truck volumes would grow 1.6% this year after two years of declines.
Despite the prediction that the industry will recover, several companies have already ceased operations in 2025.
Auto hauler ceases operations
Auto-hauling company Jack Cooper on Feb. 10, 2025, alerted employees in an email that the company was shutting down its operations after major automakers Ford and General Motors stopped doing business with the trucking company.
Ford Motor Co. on Jan. 1, 2025, invoked a 30-day termination clause to end its business agreement with the auto logistics company. More bad news came as General Motors on Feb. 6 instructed its workers to stop loading new cars on Jack Cooper trucks.
The trucking company could no longer continue operating after losing business from those two huge auto companies. Â
About a month later, Michigan-based trucking company Equity Transportation Co. Inc., which had 100 drivers and 109 power units, laid off all of its drivers and ceased operations, according to several sources with knowledge of the situation, FreightWaves reported.
Employees of the company had questions about their final paychecks in March, as some of the company’s drivers were waiting for their paychecks and others had received checks that were returned for insufficient funds, according to Facebook posts.
The company did not indicate if it would file for bankruptcy and did not reveal a reason for closing down its business.
Image source: Shutterstock
LTI Trucking goes out of business
And now, huge trucking and logistics company LTI Trucking Services informed its 250 drivers on April 2 that it is shutting down its operations, FreightWaves reported.
Related: Major furniture company closing down, no bankruptcy plans
“After exhausting all possible options and careful consideration of our circumstances, we have made the difficult decision to close LTI Trucking Services,â a message to drivers said.
More closings:
- Popular retail chain to close unprofitable store locations
- Bankrupt retail chain unloads store leases, key asset
- Popular discount retailer files bankruptcy, closes all stores
The Madison, Ill.-based trucking company reportedly told drivers it would work with them to return them home immediately and issue them their final paychecks.Â
âAny driver that wants to go home immediately, we will work with you that way,â the company told drivers. âWe promise that you will get all funds you are due.â
The company has not indicated if it will file for bankruptcy protection.
LTI Trucking Services was established in 2005 in suburban St. Louis and had 300 tractors and 575 trailers. The company specialized in temperature-controlled freight transportation, shipping to over 30 states in the Midwest, South, and East.
Among the companies whose products LTI Trucking shipped were AB InBev, KraftHeinz, Vlasic, Hershey’s, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee.
Related: Major national healthcare chain files for Chapter 7 liquidation