Trucking and logistics companies have faced severe economic distress over the last three years as they continue to navigate the Great Freight Recession.
Companies have identified several issues that have led to financial problems, including reduced shipping demand, lower freight rates, and rising costs of labor, fuel, and insurance, which have impacted revenues and profits.
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Financial distress was too much for several trucking firms, which closed their businesses permanently in April without filing for bankruptcy.
Related: Major logistics and trucking company files Chapter 11 bankruptcy
Madison, Ill.-based LTI Trucking, with about 250 drivers, 300 tractors, and 575 trailers, shut down its operations on April 2 and did not file for bankruptcy protection.
The company, which did not state a reason for closing, was a major shipper of products for AB InBev, KraftHeinz, Vlasic, Hershey’s, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee.
Florida-based trucking company Davis Express Inc. shut down its business permanently after making its final deliveries on April 23 and returning all trucks to its terminal by April 30. All employees will be paid and receive benefits through their June 15 pay period, the company said.
Davis Express also did not file for bankruptcy.
The trucking company had 160 trucks and 140 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER web page. It laid off its drivers, but said it will continue to employ mechanics and operate its shop while the company takes equipment out of service and sells its assets.
The owner of the company planned to retire and did not want to wait any longer for the business to turn around or to find a buyer. The founder’s family did not want to continue operating the business due to industry challenges, he said.
Trucking companies file for bankruptcy
Then, there were trucking companies that filed for Chapter 11 bankruptcy in April and May.
Three trucking companies filed for Chapter 11 protection on April 7, including Memphis-based trucking firm, Best Logistics Inc.; C&C Freight Network, which filed to restructure its debts, facing economic problems; and Dedham, Mass.-based Best Choice Trucking LLC, which filed for bankruptcy to restructure its debts, including a large amount of vehicle financing.
Transportation and logistics company Balkan Express and its affiliate Balkan Logistics filed for Chapter 11 bankruptcy to restructure their debts on April 30.
Balkan Express operates 159 power units and employs about 166 drivers who ship general freight, including beverages.
On May 8, logistics and trucking company, KPower Global Logistics LLC, filed for Chapter 11 bankruptcy protection to reorganize its business almost four months after its affiliate Reliable Healthcare Logistics LLC filed for bankruptcy.
Mount Prospect, Ill., trucking and freight transportation company AZA Transportation Inc. filed its Subchapter V Chapter 11 petition on May 14, and Elite Carriers filed its petition on May 21.
NAS Logistics files for Chapter 11 bankruptcy..
Image source: Shutterstock
NAS Logistics files for bankruptcy protection
Finally, struggling trucking company NAS Logistics LLC filed for Chapter 11 bankruptcy protection to reorganize its business and restructure its debts.
Related: Another major trucking company files Chapter 11 bankruptcy
Grand Prairie, Texas-based trucking and logistics company filed its petition on May 27 in the U.S. Bankruptcy Court for the Northern District of Texas, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities.
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The trucking company reportedly owes debts to several creditors, including multiple financial institutions and transportation-related companies.
The debtor, which has operated since 2019, did not indicate a reason for filing for bankruptcy. Calls to the company for comment were not answered.
NAS Logistics transports general freight, grain, feed, and hay throughout the Midwest and the East, according to CarrierSource.
Related: Major trucking company files Chapter 11 bankruptcy to restructure