Troubled trucking company among 17 forced to shut down immediately or file for bankruptcy already this year

DOZENS of trucking companies have filed for bankruptcy over the past years, leading to the collapse of one of America’s most iconic industries.

In 2025 alone, 17 trucking companies filed for bankruptcy; however, other major companies opted to shut down their operations completely without filing for bankruptcy.

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Major truck companies are shutting down (stock photo)[/caption]

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The companies site market conditions and rising costs for the closures (stock photo)[/caption]

In April, the trucking company Davis Express quietly shut down, making its final deliveries on April 23.

Davis Express, which owned 160 trucks and employed 140 drivers, closed without ever filing for bankruptcy, The Street reported. 

The company, which operated in Florida, Alabama, Georgia, and South Carolina, has not made any profit since 2023. 

The owner reported that it most likely wouldn’t make any profit in 2025, forcing the company to shut down.

LTI Trucking, a Madison, Wisconsin-based trucking company, ceased all operations earlier this year without filing for bankruptcy.

The company closed for good on April 2, laying off 250 drivers.

LTI was a major trucking company for nationwide brands such as Hershey’s, Nestle, Tyson, Hillshire Farm, Hostess and Sara Lee.

The company also delivered for the grocery store Kroger. 

LTI owned 300 tractors and 575 trailers, which are now no longer in use. 

The company never shared an official reason for its closing.

Companies that have been in operation for decades are also being affected by the trucking recession.

TGS Transportation, which has been in operation for 40 years, announced its closure via LinkedIn on July 31.

“It is with profound sadness and a heavy heart that TGS announces the official closure of its operations, effective July 31, 2025,” the message said.

“After four decades of dedicated service to the transportation industry, we will be parking our trucks for good.”

The company cited challenging market conditions as the reason for shutting down all its operations. 

“While TGS is closing, we are pleased to inform you that some members of our dedicated team will continue to serve the industry under a new flag,” the message continued.

Other experts have attributed the shocking decline of the trucking industry to the impact of raised tariffs against foreign countries and the struggling businesses the trucks are serving.

“It really has to do more with who those trucking companies’ customers were and the businesses they were in,” ACT Research Vice President Steve Tam told Equipment Finance. 

“So, it’s the underlying business that they’re supporting that’s actually failing, and as a result, if I got all my eggs in one basket, I’m in trouble.” 

SHIFTING GEARS

To help defend the truckers, the government held a hearing that examined issues within the trucking and motor coach industries.

The hearing was led by Republican Indiana Senator Todd Young, chairman of the subcommittee on Surface Transportation, Freight, Pipelines and Safety.

The hearing was titled Shifting Gears: Issues Impacting the Trucking and Commercial Bus Industries in the US.

Throughout the hearing held in July, government and trucking officials worked together to enhance safety, reduce regulations and ensure the viability of the industries, The Trucker reported.

“For over 90 years, ATA has represented an industry that today employs 8.5M of the hardest working [people] in the country,” The American Trucking Associations president and CEO Chris Spear said.

Spear thanked the government and American people for their support over the years, and then drew attention to issues in the industry.

“ATA was among the first to support the passage of the landmark bipartisan infrastructure law which boosted highway funding by 38%. Unfortunately, rising construction costs and red tape have eroded the impact of federal grants.

“One consequence is record high congestion now costing our economy more than $109B the equivalent of 435,000 truck drivers sitting idle for an entire year. The next infrastructure bill has to alleviate those bottlenecks, but also prioritize other critical projects like truck parking.”

Spear called for officials to focus on training truck drivers and to invest in to teaching young drivers how to operate a large vehicle safely.

“Training is key, Spear said.

“None of the 49 states have that. Your pilot program that was enacted has 400 hours of training in which you have to have a supervisor, experienced driver in the cab with you. It has 14 metrics attached to it.

“This is a step towards safety, unlike the 49 states. Not a step away.”