BREAKING: Legacy trucking company STG Logistics Inc. has officially filed for Chapter 11 bankruptcy, marking a dramatic turn in the ongoing struggles of the shipping industry. The filing was submitted on Monday in the US Bankruptcy Court for the District of New Jersey, revealing debts of approximately $1.16 billion and assets ranging between $1 billion to $10 billion.
This bankruptcy comes amidst the so-called “great freight recession,” which has persisted for over four years, beginning in March 2022. The downturn followed a boom during the Covid-19 pandemic, when the industry saw record revenues in 2021.
In a statement, CEO Geoff Anderman emphasized the importance of this move, saying, “Today’s announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history.” He expressed confidence that the Chapter 11 process will position the company for future growth.
The challenges facing STG Logistics are extensive. In addition to a significant decline in freight demand, the company is grappling with a historic shift in the logistics landscape. Major retailers like Dollar General and Home Depot are increasingly turning to private in-house shipping fleets, which now account for a staggering 70% of all outbound shipments in the United States. This shift is significantly eroding traditional shipping profits.
CFO Tyler Holtgreven highlighted additional pressures, stating that “softening freight demand” combined with “lingering excess capacity in the market” has exacerbated STG’s financial woes. Furthermore, recent tariffs imposed during the Trump administration have led to a 14% year-over-year decline in import volumes, with STG specifically facing a 7% drop in 2025 compared to 2024. Rising inflation and increasing insurance rates are further inflating operating costs, compounding the company’s difficulties.
The impact of STG’s bankruptcy extends beyond the company itself. Thousands of employees and stakeholders may face uncertainty as the industry grapples with these significant changes. The legacy of one of North America’s largest providers of port-to-door shipping services is now at stake.
Going forward, the industry will be watching closely to see how STG navigates this bankruptcy process and what it means for the future of freight logistics in the United States. As major retailers adapt their shipping strategies, the landscape of freight transportation is likely to evolve even further, impacting both businesses and consumers alike.
Stay tuned for further updates on this developing story as the implications of STG Logistics’ bankruptcy unfold.
