Trucking Industry Bankruptcies: Trends & Takeaways (2023–2025)
The past few years have seen an unprecedented wave of trucking company failures in the U.S. Many small carriers have shut down, and even some long-established firms (like Yellow Corp.) have filed for bankruptcy. This guide explains the recent trends, the main reasons behind these closures, the impact on the economy and supply chains, and what drivers should expect in terms of rates, pay, and job security.
Recent Trends (2023–2025)
Record Closures in 2023: Industry data show roughly 88,000 U.S. trucking firms closed in 2023 (mostly small fleets). This decline – the largest in decades – reflects the deepening “freight recession.”
Major Bankruptcies: Some high-profile companies folded. For example, Yellow Corp. (a 100-year-old less-than-truckload carrier) filed for Chapter 11 in August 2023, threatening about 30,000 jobs. Digital brokerage Convoy ceased operations in late 2023. Other carriers like Matheson and Elite Transit Solutions also shut down.
Continuing into 2024–2025: In 2024, century-old Arnold Transportation Services and 70-year-old Tony’s Express both liquidated. Dozens more mid-sized carriers filed bankruptcy in 2024–2025. By mid-2025, over 30 trucking companies had filed Chapter 11. Overall, bankruptcy filings remained near historic highs, reflecting a very tight market.
Why Companies Are Closing
Rising Operating Costs: Trucking is expensive to run today. Average per-mile costs reached about $2.26 in 2024—roughly 37% higher than in 2020. New trucks, insurance, parts, and wages all climbed, while freight rates did not. Even though diesel has fallen from 2022’s peak, it remains one of the largest expenses. These costs outpace what carriers can charge.
Weak Freight Rates and Demand: Shippers are paying less. Spot dry-van rates around $1.60–$1.65 per mile in 2025 are well below break-even levels. Low consumer demand, manufacturing slowdowns, and tariff-related uncertainty have all suppressed freight volumes. In short, rates are low while costs remain high—squeezing carrier margins.
Regulatory and Legal Burdens: New laws have raised labor and compliance costs. California’s AB5 law, for instance, requires many owner-operators to be treated as employees, adding benefit and tax expenses. Environmental and emissions regulations have also added costs. In some cases, carriers were hurt by internal mismanagement or fraud.
Overcapacity and Tight Credit: For years, too many trucks have chased too little freight. Many small carriers lingered even as volumes dropped, undercutting rates. At the same time, higher interest rates and stricter bank lending made it harder to refinance or expand. The result is a wave of bankruptcies as companies buckle under debt and falling cash flow.
Economic and Supply-Chain Impact
Jobs: Trucking is a massive employer, so bankruptcies threaten driver and dockworker jobs. Yellow’s collapse alone cut around 30,000 positions, and thousands more drivers lost work at smaller fleets. While many drivers have found new jobs, some regions have seen layoffs ripple through local economies.
Supply Chains: Trucks carry roughly 70–75% of U.S. freight by weight, so disruptions hit nearly every industry. When carriers collapse, freight gets delayed or re-routed. After Yellow halted operations, shippers had to scramble for alternatives, temporarily slowing supply chains.
Freight Rates: For now, too many trucks are still chasing too few loads, which keeps spot rates low. However, as weaker carriers exit the market, capacity will tighten and rates could start rising again. Analysts expect modest freight growth through 2025, setting the stage for a gradual rebound.
Shipping Costs and Consumer Prices: Currently, shippers are benefiting from low rates. But if trucking capacity tightens and rates climb, transportation costs could filter into higher retail prices for consumers.
What This Means for Drivers and Carriers
Rates and Pay: Spot rates have been relatively flat, around $1.60–$1.65 per mile—below what most carriers need to stay profitable. Driver pay growth has also slowed, with only small increases expected until freight rates recover.
Demand: Freight volumes have been stable but sluggish. After a brief boost from “tariff stocking up” in early 2025, demand growth has plateaued. Drivers should expect a slow recovery through 2026, with steady but limited opportunities.
Job Security: Smaller carriers and owner-operators remain most vulnerable. Drivers at larger fleets generally have more stability, while independents face higher risk of late pay or sudden shutdowns. However, as weaker companies close, new openings are appearing at stronger fleets.
Cost Monitoring: Fuel, insurance, and maintenance costs continue to eat into earnings. Drivers should ensure that their pay and load rates cover these rising expenses. Ask carriers about fuel surcharges or cost-sharing programs.
Market Shifts: Certain freight niches remain more stable—like refrigerated freight, food distribution, or final-mile delivery. Drivers may want to consider getting specialized endorsements or targeting carriers in steady-demand segments.
Regional Factors: West Coast drivers, especially in California, continue to face higher costs and tighter rules under state labor and emissions laws. Drivers in those areas should stay updated on legal and regulatory changes.
What Truckers Should Watch For
Freight Rates and Volumes: Keep an eye on load boards and rate indexes. Expect only modest freight growth in 2025, meaning rates will likely stay competitive.
Fuel Prices: Diesel volatility continues. Stay informed about fuel trends and understand your company’s fuel surcharge policy.
Industry News: Follow trucking media for updates on bankruptcies, mergers, or expansions—this helps identify stable carriers and avoid risky employers.
Regulations: Stay current with FMCSA updates, state-level laws, and insurance requirements. Compliance and clean safety records make drivers more valuable.
Financial Preparedness: Save during high-demand periods to weather slow months. Keep licenses, medical cards, and endorsements up to date in case you need to switch employers.
Networking and Flexibility: Build relationships with multiple brokers and carriers. Being adaptable with lanes, schedules, or equipment type can protect your income during downturns.
Employer Health: If you notice late pay, reduced loads, or internal layoffs, investigate early. Drivers working for financially stable fleets will have more job security.
Final Takeaway
The freight market remains challenging, but it’s also shifting toward recovery. Trucking bankruptcies from 2023–2025 have cleared out weaker carriers and are gradually rebalancing capacity. For drivers and fleet owners who can manage costs and stay efficient, this transition could open up new opportunities once freight demand improves.
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