Freight distress report: Warehouse cuts mount, trucking bankruptcies continue

A new wave of bankruptcy filings and WARN notices indicates persistent financial pressure across the U.S. trucking, warehousing, and contract logistics sectors. Significant job cuts are hitting facilities in Indiana and California, driven primarily by shifting customer needs and contract terminations. These developments highlight a period of sustained distress for both small freight operators and large-scale labor providers within the supply chain.

The warehousing sector is facing substantial labor reductions, particularly in Avon, Indiana, where over 1,100 workers are set to lose their jobs. Humano LLC and SIMOS both issued WARN notices for operations at a Radial LLC facility, with Humano expecting to cut 586 freight handlers and SIMOS eliminating 574 roles across receiving, shipping, and equipment operation by mid-August. Additionally, Ryder Integrated Logistics announced 76 permanent layoffs at a customer site in Plainfield, Indiana, effective July 31, while GXO Logistics reported 84 layoffs in San Bernardino, California.

Small freight carriers continue to struggle with insolvency, as evidenced by several recent court filings. Memphis-based Tucker Boyz Transportation LLC, which operates 22 trucks, filed for Chapter 11 protection on June 23, reporting $152,000 in liabilities against $126,000 in assets. Other notable filings include Chicago-based Navstar Express LLC, which filed for Chapter 7 liquidation, and Maryland-based Touchstone Logistics LLC, which sought Chapter 11 protection. These filings underscore the precarious financial position of smaller operators facing a challenging freight environment.

The distress extends beyond standard dry van trucking into specialized logistics and storage providers. Travelers Xpress Services, a warehousing provider in Florida, and Power Lane Logistics Distribution & Warehousing in California both filed for Chapter 11, with the latter reporting liabilities between $1 million and $10 million. Furthermore, Azhderian Cold Storage in California filed for bankruptcy protection on June 24. Collectively, these events demonstrate a broad-based downturn affecting diverse segments of the transportation industry, from refrigerated storage to third-party staffing and general freight hauling.