Trucking Bankruptcies Surge as Freight Firms Restructure

A growing list of U.S. trucking and logistics firms has filed for bankruptcy in 2025, reflecting mounting pressures across the freight market. FreightWaves reports that several high-profile companies, from Texas to Illinois, have sought Chapter 11 protection as shrinking margins, rising costs, and ongoing tariff uncertainties hammer the sector.

This downturn comes alongside layoffs and facility closures, marking one of the most turbulent stretches for U.S. supply chains in recent years.

FreightWaves Tracks Major 2025 Closures

FreightWaves has compiled some of the largest bankruptcies and shutdowns so far this year. Here are the three most notable:

1. Balkan Express (Texas)

Fort Worth-based Balkan Express and its affiliate, Balkan Logistics, filed for Chapter 11 bankruptcy in late April, citing debts of over $25 million.

• Fleet size: 159 trucks, 166 drivers
• Services: Drop-and-hook, dedicated, just-in-time deliveries across Texas and the Southwest
• Notable creditor dispute: $4.2 million lawsuit from M&T Capital over unpaid loans

Balkan, founded in 2007, reported assets between $10–$50 million and aims to reorganize under bankruptcy protection. Company officials have not provided public comment.

2. Truck & Trailer Leasing Avenue (Illinois)

Based in Joliet, Illinois, this leasing firm filed for its second Chapter 11 bankruptcy in just over a year.

• Assets and liabilities: $10–$50 million
• Major creditors: Bank Midwest ($818,000), De Lage Landen Financial Services ($623,000)

Despite the repeated filings, the company claims funds will be available to pay unsecured creditors. Calls for comment went unanswered.

3. Starr Rail (Texas)

A transloading and warehousing provider, Starr Rail filed for Chapter 11 in early April.

• Assets and liabilities: $1–$10 million
• Largest unsecured debts: CPKC railroad ($220,000), Kiamichi Railroad ($133,000)

The company offers last-mile dedicated trucking and packaging services. Public comment has not been provided.

Broader Market Struggles

Other notable filings include LML Logistics (Florida), Kadam Logistics (Illinois), and Sweet Trucking Co. (Tennessee), each reflecting squeezed revenues and mounting debts. Notably, Accelerate360, a major magazine distributor, announced 324 permanent layoffs in South Dakota and Missouri due to outsourcing.

It was been warned by many industry leaders that more collapses could follow as firms grapple with tariff pressures, reduced freight demand, and intense competition. Many companies, even those surviving, are trimming networks, cutting costs, and automating operations in an attempt to stay viable.

Source: Freight Waves 1 | 2