Logistics Industry Faces Wave of Bankruptcies, 1,400+ Warehouse Job Cuts

The freight and logistics industry is experiencing a significant contraction marked by concurrent waves of bankruptcies and mass layoffs. Within a single week, six transportation and warehousing companies filed for bankruptcy protection while three major WARN notices announced the permanent closure of entire operational units affecting over 1,300 workers. This convergence of distress signals—particularly the closure of significant operations at a major Radial fulfillment facility in Indiana—indicates systemic stress rather than isolated company failures.

The distress spans the full spectrum of logistics operations: small truckload carriers with 22 trucks are seeking Chapter 11 protection alongside refrigerated storage facilities and major contract logistics providers. For supply chain professionals, this represents both an immediate capacity risk and a warning signal about customer confidence and freight demand. The fact that Humano and SIMOS are closing entire operational units rather than consolidating suggests their customers (likely e-commerce retailers) have fundamentally reduced their logistics spending or moved to alternative providers.

The combination of business failures and preventative layoffs suggests the industry has overcapacity relative to current demand. Companies are not merely struggling financially—they are exiting markets entirely, which will reshape competitive dynamics and potentially consolidate services among fewer providers. Shippers should anticipate service disruptions, rate volatility, and reduced negotiating leverage as the market adjusts to this new reality.