A new wave of bankruptcies and layoffs is sweeping through the U.S. freight industry, eliminating more than 600 jobs across multiple states despite significant improvements in freight demand. FreightWaves reported Thursday that trucking carriers, freight brokers, warehouses, and logistics providers filed for bankruptcy protection or announced facility closures over the past week, affecting workers in Arizona, Georgia, Idaho, Illinois, Pennsylvania, Maryland, Tennessee, and Wisconsin. The wave of distress highlights continuing financial pressures on transportation providers even as the broader freight market recovers.

The bankruptcies included nine companies filing for Chapter 11 reorganization or Chapter 7 liquidation between May 13 and June 2, 2026. Wisconsin-based Sparhawk Trucking Inc., which operates 178 trucks and employs 146 drivers according to FMCSA records, warned employees of potential layoffs or complete closure as it seeks a buyer through bankruptcy proceedings. Illinois saw three filings: Park Ridge-based SP Trans Inc. reported assets and liabilities between $500,000 and $1 million, while Boost Express Logistics Inc. filed for liquidation with assets under $50,000 but liabilities up to $1 million, and Saturn Trucking Inc. entered Chapter 7 with similar financial distress. North Carolina's SB Hauling & Crane Services LLC and Maryland's M&L Express LLC both filed for Chapter 11 protection on May 29, with M&L Express historically operating nine tractors and accumulating over 1 million annual miles. Meanwhile, layoffs topped 600 positions: meal-kit provider HelloFresh will close its Burr Ridge, Illinois facility, cutting 254 jobs; third-party logistics provider GEODIS Logistics will shutter a Carlisle, Pennsylvania distribution center on August 31, affecting 185 employees; FedEx plans to eliminate about 100 positions in Phoenix as part of its Network 2.0 initiative; and cold-storage provider Americold Logistics will permanently close an Atlanta warehouse, resulting in 69 layoffs.

The financial distress is unfolding against a backdrop of substantial freight market improvement, according to the report. As of Wednesday, SONAR's Outbound Tender Volume Index shows tender volumes are 43% higher year-over-year compared to the same period in 2025, indicating freight demand has shown significant improvement during the first quarter of 2026. The report notes that "while tight margins and higher costs have been affecting small and medium-sized carriers and supply chain-related businesses, freight demand has shown significant improvement."

The contrast between rising demand and continuing bankruptcies reveals the lagging effect of financial damage from earlier market downturns. Company officials at GEODIS said the Pennsylvania closure is part of efforts to "better align business priorities and support long-term growth initiatives," while Americold characterized its Atlanta closure as part of a "broader corporate efficiency initiative." The Chapter 7 liquidation filings tell a harsher story: Saturn Trucking's court documents indicate no funds are expected to be available for unsecured creditors after administrative expenses are paid, and Boost Express Logistics reported liabilities up to 20 times greater than its remaining assets. The bankruptcies spanned diverse freight segments, from general freight trucking and specialized crane services to freight brokerage and produce warehousing, suggesting the financial strain isn't limited to one sector.

The report's data shows the freight industry remains in a painful restructuring phase where improved demand hasn't yet translated into financial stability for hundreds of operators and their employees. With Sparhawk Trucking's officials cautioning employees "not to assume the business will remain open" despite seeking a buyer, and multiple Chapter 7 liquidations leaving creditors empty-handed, the industry faces months of continued distress even as volumes climb. For the more than 600 workers facing layoffs, the market's 43% year-over-year improvement offers little immediate relief.