UPDATE: In a shocking turn of events, STG Logistics Inc., the largest provider of port-to-door shipping services in North America, has officially filed for Chapter 11 bankruptcy. This significant move comes as the company grapples with the ongoing “great freight recession,” which is now entering its fourth year. The filing was submitted to the U.S. Bankruptcy Court for the District of New Jersey on Monday, revealing approximately $1.16 billion in debt and assets and liabilities between $1 billion to $10 billion.
The trucking industry has faced immense pressure since the recession began in March 2022, following a pandemic-induced boom that peaked revenue in 2021. In a statement, CEO Geoff Anderman emphasized the necessity of this decision, stating, “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 decline in freight demand is exacerbated by major retailers like Dollar General and Home Depot launching their own in-house shipping fleets. These fleets now account for an unprecedented 70% of all outbound shipments in the United States, significantly impacting industry profits. CFO Tyler Holtgreven noted that “softening freight demand, along with lingering excess capacity in the market,” contributed to the company’s crisis.
Compounding these issues are external factors such as tariffs imposed by former President Donald Trump, which led to a 14% year-over-year decline in import volumes in the second half of 2025. Furthermore, rising inflation and increased insurance rates have driven operating expenses higher, while revenue continues to struggle.
The implications of STG’s bankruptcy extend beyond the company itself, affecting the entire shipping industry and numerous stakeholders. As a pivotal player in logistics and supply chain, STG’s downfall raises concerns over job security for its employees and potential disruptions for businesses relying on its services.
As the situation develops, industry experts and stakeholders will be closely monitoring the ramifications of this bankruptcy filing. The future of STG Logistics and the broader shipping landscape hangs in the balance, with many awaiting the outcomes of the Chapter 11 process.
Stay tuned for updates on this urgent situation as more details become available.
