The U.S. trucking industry is facing a severe freight recession, leading to thousands of carrier bankruptcies and closures. This downturn has significantly impacted rural communities by reducing delivery services and causing widespread financial and operational disruptions nationwide.
The trucking industry has faced significant closures, with approximately 88,000 companies shutting down in 2023, according to CarrierOK. In Q2 2025, reports indicate that over 30 trucking companies filed for Chapter 11 bankruptcy.
This disparity reflects the difficulty in tracking real-time bankruptcy data across multiple court jurisdictions. A key event was the Chapter 11 bankruptcy filing of Yellow Corp., one of the largest U.S. trucking companies, in August 2023, highlighting the widespread challenges in the industry.
The Perfect Storm
The recession can be traced back to the post-pandemic freight boom, where rising demand increased trucking capacity. As rates surged in 2021 and early 2022, many new carriers entered the market. By late 2022, however, freight volumes contracted sharply, causing rates to plummet. According to industry analysis, the freight recession was marked by too much capacity and not enough demand, creating a challenging environment for truckers nationwide.
The Cass Freight Index, which tracks shipment volumes and expenditures, reported a significant decline during the recession. By September 2024, shipments fell 5.2% year-over-year, with forecasts of a 4% to 5% decline in freight volume for the year. Current data for 2025 shows that the downturn continues, with a 6.97% decrease in freight shipments compared to the previous year as of July 2025.
In 2023, the freight industry faced a significant recession, leading to the bankruptcy of many trucking companies, including Yellow Corp. This downturn affected carriers nationwide, with California, a major freight hub, seeing the collapse of several long-established firms due to low rates, high operating costs, and stricter regulations.
Industry analysis reveals that rates stayed low after the pandemic freight boom collapsed, while costs stayed high: fuel, labor, parts, and insurance premiums. This combination created perfect conditions for widespread closures, service disruptions, and industry consolidation.
Rural America has faced significant challenges due to declining delivery volumes. This reduction has made it difficult for businesses and residents to access essential goods and services, disrupting local supply chains and raising concerns about the long-term economic viability of these communities.
On April 30, 2025, Amazon revealed a $4 billion investment to improve its rural delivery network, enabling same-day delivery to thousands of small towns in the U.S. by year-end. This move addresses rural delivery gaps and recognizes the business potential in these underserved markets.
Signs of Recovery Emerge
Despite the prolonged downturn, industry experts have begun identifying signs of recovery. FreightWaves declared in November 2024 that “The Great Freight Recession is officially over,” citing improving tender rejection rates and rising spot rates as key indicators. Tender rejections have increased to over 6% from record lows of 3.4%, suggesting carriers are regaining pricing power.
However, not all analysts agree that the recovery is complete. In March 2025, David Roush of KSM Transport Advisors cautioned that “the three-year-long Great Freight Recession is NOT over,” warning that early optimism may have been premature as bankruptcies continued into 2025.
The freight recession impacts more than just trucking. Retailers and manufacturers are burdened with rising shipping costs and supply chain uncertainties, and shippers are struggling to find reliable logistics partners. Cass Freight Index data indicate that ongoing trade tensions and policy uncertainties have further weakened freight demand, exacerbating the industry’s challenges.
The trucking industry is working toward stabilization, and analysts are cautiously optimistic about a recovery in 2025. To adapt to evolving market demands, companies are expected to focus on cost management, regulatory compliance, and technological innovation.
The impact on rural communities and the broader economy is significant, as the sector adjusts to changing delivery expectations. The closure of about 88,000 trucking firms in 2023 and continued bankruptcies in 2025 highlights the severity of the downturn and the lengthy recovery process ahead.