The freight industry, which includes trucking, rail, maritime shipping, air, logistics, and warehousing, has faced a downturn over the last three years and additional uncertainty this year by the White House’s implementation of tariffs.
Shipping companies began 2025 already entrenched in the Great Freight Recession, dealing with reduced shipping demand, lower freight rates, and rising costs of labor, fuel, and insurance, which have impacted revenues and profits.
Companies are already battling rising costs, and many await an assessment of the effects of increased tariff costs on their businesses.
The freight industry has also faced a truck driver shortage since the Covid-19 pandemic, which caused thousands of layoffs. The industry has not recovered from the decline in drivers, as many changed careers and did not return to truck driving.
Truck driver shortfall weighs on industry
The trucking industry has a shortfall of 80,000 drivers, according to the American Trucking Association’s 2025 estimate. The industry will need to add 1.2 million new drivers over the next decade to keep up with freight demand and replace retirees, TruckClub reported.
David Roush, president of accounting firm KSM Transport Advisors, warned on the company’s website in March 2025 that the Great Freight Recession was alive and well.
“News Flash: The three-year-long Great Freight Recession is NOT over. The leading indicators that caused FreightWaves to declare the end of the GFR in November 2024, and the resulting carrier optimism is now in the rearview mirror,” Roush said at the time.
Long-haul truckload demand reportedly plummeted by 25% in the first half of 2025, with trucking becoming more of a short-haul delivery method for the final leg of freight movement.
Trucking industry consultants and analysts have not yet declared the end of the freight recession as businesses struggle and launch out-of-court restructurings or filed for bankruptcy.
Carrier bankruptcy filings continue
Demand has been stagnant, capacity tightened due to stricter enforcement of immigration laws in the Midwest and Texas, and “the steady trickle of carrier bankruptcies continued,” according to Ryder and FreightWaves’ State of the Industry Report released on Oct. 24.
Increased costs of doing business have forced a historic shipping company to file for bankruptcy to give it breathing room to address its financial distress.
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Port Elizabeth Terminal & Warehouse files for bankruptcy
Port Elizabeth Terminal & Warehouse Corp., a shipping, logistics, and warehousing company that was established in 1924, filed for Chapter 11 bankruptcy to reorganize its business and restructure its debts.
The debtor, which operates an East Rutherford. N.J., marine terminal serving the Port of New York and New Jersey, blamed escalating lease costs, increased real estate taxes, and rising insurance costs for its financial distress.
Landlord lockout forces bankruptcy
A judgment in favor of one of the debtor’s landlords that allowed the landlord to lock the debtors out of their East Rutherford, N.J., warehouse prompted the debtor to file its bankruptcy petition.
The Newark, N.J.-based debtor and five affiliates filed their petition on Nov. 14 in the U.S. Bankruptcy Court for the District of New Jersey, listing $50 million to $100 million in assets and liabilities, according to Bankruptcy Observer.
The debtor reached a debtor-in-possession financing agreement with First Business Specialty Finance to provide a new factoring agreement, with the lender purchasing Port Elizabeth Terminal & Warehouse’s prepetition and postpetition accounts receivable.
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The debtor reported about $13.2 million in secured and unsecured debt, with about $2.7 million of secured debt obligations and $10.5 million in unsecured debts.
The 101-year-old transportation and logistics company’s largest unsecured creditors include Hartz Elizabeth Inc., owed over $3.5 million on a warehouse lease; GLC Jersey City LLC, owed over $888,000 on a yard lease; RREEF America REIT Corp YYY, owed over $686,000 on a warehouse lease; Milestone Equipment Company, owed over $666,000 in trade debt; and Prologis Logistics Real Estate, owed $550,000 on a warehouse lease, according to Bondoro.
Port Elizabeth Terminal largest unsecured creditors
- Hartz Elizabeth Inc., owed $3.5 million
- GLC Jersey City LLC, owed over $888,000
- RREEF America REIT Corp YYY, owed over $686,000
- Milestone Equipment Company, owed over $666,000
- Prologis Logistics Real Estate, owed $550,000
The debtor operates transportation, logistics, and warehousing services, which include rail, truck, air, and international transport options. It also includes rail boxcar and container handling.
Port Elizabeth Terminal & Warehouse provides specialized material handling, cross-docking, packing services, product care, and expertise in handling alcoholic beverages, Bondoro reported.
Port Elizabeth Terminal & Warehouse services
- Rail, truck, air, and international transportation
- Logistics
- Warehousing services
- Rail boxcar and container handling
- Specialized material handling
- Cross-docking
- Packing services
- Product care
Related: Popular fashion retailer files for Chapter 11 bankruptcy
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