UPDATE: STG Logistics Inc., a legacy trucking company and North America’s largest provider of port-to-door shipping services, has officially filed for Chapter 11 bankruptcy, marking a significant downturn in the shipping industry.
The filing took place on Monday in the U.S. Bankruptcy Court for the District of New Jersey, driven by a staggering $1.16 billion in debt and asset liabilities ranging from $1 billion to $10 billion. This pivotal moment comes as the “great freight recession” enters its fourth consecutive year, having begun in March 2022 following a pandemic-fueled boom that peaked in 2021.
CEO Geoff Anderman stated, “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 long-term recovery and growth.
Factors contributing to this downturn include not only a decline in freight demand and excessive market capacity but also a strategic shift by major retailers. Companies like Dollar General and Home Depot have initiated private in-house shipping fleets, which now account for an unprecedented 70% of all outbound shipments in the U.S., severely impacting industry profits.
Additionally, Tyler Holtgreven, CFO of STG, noted that the softening demand has been exacerbated by external economic pressures, including President Donald Trump’s tariffs, which have led to a 14% year-over-year decline in import volumes during the second half of 2025.
Rising inflation and increasing insurance costs have further strained operating expenses, as revenue struggles under the weight of these challenges. STG Logistics has not yet responded to inquiries for comments on their current status or future plans.
This developing situation not only affects the trucking sector but also poses potential disruptions for retailers and consumers alike. As major companies pivot towards self-managed shipping solutions, the landscape of freight and logistics is rapidly changing, leaving many to wonder what this means for the future of traditional trucking businesses.
As the industry navigates these turbulent waters, all eyes will be on STG Logistics and its next steps in the Chapter 11 process. The implications of this bankruptcy could ripple through the entire supply chain, affecting everything from delivery times to product availability in stores nationwide.
Stay tuned for updates as this story unfolds and further developments arise.
