The trucking industry has faced unprecedented challenges over the past five years, and not every company has managed to weather the storm.
Trucking companies have been asked to endure a lot in order to deliver the goods America needs over the past few years. Carriers have faced the challenges of a global pandemic, highway protests, rising inflation, high fuel prices, catastrophic weather events, an ever-increasing regulatory burden, and now, a major freight market slowdown and plummeting rates.
Amidst these market challenges, some trucking companies have also been impacted by acquisitions, investigations into wrongdoing by company leadership, or labor issues with union workers.
While most trucking companies have been able to navigate through these challenges, hundreds have been forced to declare bankruptcy, close their doors, and lay off workers.
Here are some of the most impactful carriers that have been forced to shutter operations over the past five years.
Yellow
In August 2023, LTL carrier Yellow announced plans to file for bankruptcy and permanently end operations after close to 100 years in business. Approximately 30,000 union and non-union jobs were lost.
Yellow blamed the closure on the refusal of the International Brotherhood of Teamsters (IBT) to agree to the “One Yellow” business plan. The One Yellow plan involved combining the operations of YRC Freight, Reddaway, Holland, and New Penn into a single carrier providing both regional and long haul services. The plan would have required the closing of some facilities and would have converted some drivers into “utility worker” positions that would require local driving and dock work.
Celadon
In December 2019, Indiana-based trucking company Celadon Group Inc. filed for Chapter 11 bankruptcy protection and announced that they were immediately shutting down their operations. Approximately 4000 workers were laid off, including hundreds of truck drivers.
The bankruptcy and closure news comes just days after the Department of Justice (DOJ) announced that two former executive officers with Celadon would face charges related to fraud and lying to investors.
LME Inc.
Minnesota-based carrier LME Inc. closed abruptly in July 2019, closing down more than 40 terminals across the county and laying off approximately 600 workers.
The announcement about LME, Inc.’s closure came shortly after the company was ordered to start paying more than $1 million in back pay to 89 union workers suddenly laid off in 2016 by Lakeville Motor Express, a company that has been described as an “alter ego” for LME, Inc.
Dillon Logistics
Illinois-based Dillon Logistics ceased operations in September 2021. The privately-owned company employed approximately 342 drivers at the time of the closure, according to FMCSA data. It was founded in 1980.
HVH Transportation
Denver, Colorado-based HVH Transportation shuttered abruptly in August 2019.
According to DOT filings, HVH Transportation employed roughly 342 drivers and had more than 344 power units in its fleet. The company was founded in 1956 and provided various transportation service including, Truckload, Dedicated, and Regional.
Arnold Transportation Services Inc.
In May 2024, Dallas County-based regional truckload carrier Arnold Transportation Services Inc. announced it would lay off 157 employees and cease operations after filing for Chapter 7 bankruptcy protection.
Arnold Transportation was acquired by Ontario-based Pride Group Logistics in February 2022.
On March 28, 2024, parent company Pride Group Holdings announced that they filed for and obtained Companies’ Creditors Arrangement Act (CCAA) protection in Canada. The company also announced plans to file for Chapter 15 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
Falcon Transport and NEMF
Other companies that narrowly missed the five year cutoff include Ohio-based Falcon Transport, which abruptly laid off 585 drivers in April 2019 and New England Motor Freight (NEMF), which shuttered in February 2019, resulting in hundreds of workers being laid off.
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