16 trucking companies file for bankruptcy, signaling capacity crunch

Between mid-September and late October, at least 16 trucking companies across the United States filed for bankruptcy protection, ranging from single-truck operators to carriers with 53 power units. The filings span multiple freight segments including general freight, petroleum transportation, and logging, with companies reporting combined liabilities in the millions while struggling with revenue declines and debt burdens. Key cases include Chicago-based Midwest Expedited Co., which reported $2.31 million in liabilities against just $108,351 in assets, and El Paso-based Site2Site Transport, which experienced a steep 24% revenue decline in 2025 compared to 2024.

These bankruptcies expose structural challenges facing smaller and mid-sized carriers: tightening credit conditions, competitive freight rate pressure, and rising operational costs that exceed revenue generation. The mix of Chapter 7 liquidations and Chapter 11 restructurings indicates carriers are not just struggling temporarily but making existential decisions about continued operations. The geographic distribution across Illinois, Texas, Georgia, Oregon, Michigan, Alabama, West Virginia, and North Carolina demonstrates that financial distress is widespread rather than isolated to a single region or freight specialty.

For supply chain professionals, this wave of carrier failures signals increased freight capacity uncertainty and elevated sourcing risk. Shippers relying on smaller carriers for specialized services like petroleum transport or logging should anticipate potential service disruptions and reassess carrier financial health as part of procurement due diligence. Rising bankruptcy rates typically precede broader market tightening and can impact rates, transit time reliability, and equipment availability across the trucking sector.