Freight market pushes another wave of trucking firms into bankruptcy

More than 20 trucking and logistics companies filed for bankruptcy protection in May as the industry continues to struggle with volatile demand and high operating costs. These filings, which include both Chapter 7 liquidations and Chapter 11 restructurings, affect a wide range of operators from small owner-operators to established regional carriers. The trend highlights a prolonged period of market distress characterized by soft spot rates and a significant increase in carrier exits compared to previous years.

The latest wave of bankruptcies includes a diverse group of carriers across states like Illinois, Texas, Arkansas, and Oklahoma, reflecting a nationwide struggle against erratic freight demand and elevated expenses. According to bankruptcy filings compiled by FreightWaves, the month of May saw over 20 trucking-related firms seek court protection. Among the most significant Chapter 7 liquidations is Standard Forwarding Freight, a 92-year-old Georgia-based carrier that previously operated 14 terminals and employed 230 drivers. The company, which specialized in hauling automotive and industrial freight with a fleet of 302 trucks, had abruptly ceased operations late last year and is now undergoing final liquidation.

In the realm of Chapter 11 restructurings, Oklahoma-based Bullet Energy Services LLC represents one of the largest recent filings. The oilfield transportation specialist reported liabilities between $10 million and $50 million against assets of up to $10 million, with nearly 200 creditors listed in court documents. Despite the filing, the company continues to operate its 32-truck fleet as a debtor-in-possession. Other notable restructuring efforts include Texas-based MAR Enterprises LLC, which logs over 1.4 million miles annually hauling produce and paper products, and Ohio’s Platinum Express Inc., illustrating that even high-utilization carriers are not immune to current market pressures.

The data reveals a particularly harsh environment for small fleets, with numerous filings coming from operators with fewer than 10 trucks, such as Arkansas-based BNL Enterprises and JN Griffin Trucking. Industry metrics from SONAR indicate that carrier net revocations—a measure of businesses exiting the trucking sector—are currently 31% higher than they were during the same period in 2025. Furthermore, new authority issuances have plummeted by 22%, as a combination of market conditions and stricter federal and state enforcement creates significant barriers for new entrants. This contraction suggests a deep-seated correction in the freight market as capacity continues to exit in response to unsustainable spot rates.