California’s TGS Transportation Shuts Down After Four Decades in Business

Fresno‑based TGS Transportation has permanently closed after 40 years of operation, citing “challenging market conditions” that have weighed heavily on California’s trucking sector. The family‑run drayage carrier announced the decision on July 31, effective immediately.

A Difficult Decision

TGS informed partners and employees of the closure in a letter signed by President Peter Schneider, CEO Timothy Schneider, and Chief Operating Officer Robert Loya.

“It is with profound sadness and a heavy heart that TGS announces the official closure of its operation, effective July 31, 2025. After four decades of dedicated service to the transportation industry, we will be parking our trucks for good,” the letter read.

The message highlighted the loyalty of the company’s workforce during a particularly difficult period.

• Employee Recognition: Company leaders thanked drivers and staff for their dedication over the last 12 to 18 months.
• Customer Appreciation: “We extend our heartfelt thanks for your unwavering trust and partnership over the past 40 years,” the letter stated.
• Looking Ahead: TGS hinted that some team members may continue serving the industry “under a new flag” in the near future.

Company Background

Founded on May 1, 1985, by Timothy G. Schneider, TGS began as a brokerage before expanding into drayage operations across California and Nevada. The company primarily served the ports of Oakland, Los Angeles, and Long Beach, moving a wide range of freight.

According to FMCSA SAFER data, TGS handled:

• General freight, intermodal containers, and building materials
• Chemicals, liquids, gases, and large machinery
• Farm supplies, fresh produce, grain, and refrigerated food products

The company operated 20 power units and employed 20 drivers at the time of closure.

Industry Notes

TGS’s shutdown follows a string of closures among California carriers grappling with rate pressures and broader freight market challenges. Just over a year ago, Tony’s Express, another California‑based family carrier, closed after 70 years in business, citing similar conditions.

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Over 200 employees are out of work as Tony’s Express in California closes abruptly. CEO cites fuel costs and market conditions as reasons.

FreightCaviarAdriana Pulley

For drayage operators tied closely to West Coast ports, declining volumes, high operating costs, and uncertain freight demand have made sustaining operations increasingly difficult.

Source: FreightWaves | CDLLIFE