The shipping industry has battled through the Great Freight Recession over the last three years, with some companies downsizing and others disappearing from the landscape.
Shipping, trucking, and logistics companies have suffered through a bad economy, decline in demand, low freight rates, rising costs of labor, fuel, and insurance, and fallout from the Covid pandemic, which created a glut of trucks and drivers in the U.S.
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Financial distress from these economic issues forced companies into out-of-court restructurings, bankruptcy filings, asset sales, and business closures.
Related: Major parcel shipping company closes down, no bankruptcy
Remarkably, several companies were able to close down or downsize their businesses without filing for bankruptcy.
LTI Trucking, which operated with 250 drivers, 300 tractors, and 575 trailers, shut down its operations on April 2, 2025 without filing for bankruptcy protection or giving a reason for closing. LTI was a major shipper of products for AB InBev, KraftHeinz, Vlasic, Hershey’s, Nestle, Tyson, Hillshire Farm, Kroger, Hostess, and Sara Lee.
Davis Express Inc., which had 160 trucks and 140 drivers, shut down its business permanently and did not file for bankruptcy, after making its final deliveries on April 23 and returning all trucks to its terminal by April 30.
The company’s owner said the company, which operated in Florida, Alabama, Georgia, and South Carolina, had been unprofitable since 2023, and he did not expect to see improvement in 2025.
All employees were paid and received benefits through their June 15 pay period, the company said.
UPS eliminates 20,000 workers
United Parcel Service in April 2025 said it will eliminate 20,000 workers and close 73 leased and owned buildings in 2025, after deciding to reduce the number of packages it will deliver for Amazon.
UPS already cut 12,000 employees worldwide in 2024.
The company blamed declining consumer demand driven by macroeconomic uncertainty from the threat of tariffs for its economic issues. The company also has no plans to file for bankruptcy.
FedEx
FedEx closes 2 facilities, lays off 100s
And now, giant shipping company FedEx Corp revealed that it will close its Omaha, Neb., and Greensboro, N.C., facilities and lay off 480 employees, including 102 and 164 employees at those locations, respectively, according to Worker Adjustment and Retraining Notification Act notices.
Related: Bankrupt essential retail brand closing more stores, more to come
FedEx said in a letter to the Nebraska Department of Labor that it will relocate the majority of its Omaha business within 50 miles of the closed facility. It said that employees impacted by the closure and relocation are not part of or affiliated with any union, and no bumping rights are available.
More closings:
- Major furniture manufacturer closes down, no bankruptcy
- Iconic pizza chain’s franchisees close multiple restaurants
- Iconic retail chain closing over 100 stores in bankruptcy
However, the letter said employees whose positions are eliminated or impacted will be provided with the options to consider transfer to new locations, severance, or a leave of absence during which they may pursue other positions with FedEx.
The company also revealed in a WARN notice that it will lay off 84 employees at its Des Moines, Iowa, facility and lay off another 131 workers at its Garland and Plano, Texas, locations.
In notifications sent to the Nebraska Department of Labor, North Carolina Department of Commerce, and Iowa Workforce Development on June 30, FedEx said the closures and layoffs were related to its Network 2.0 multi-year network transformation announced in 2022 to improve pickup, transport, and delivery of packages. It also notified the Texas Workforce Commission.
Related: Iconic retail chain closing over 100 stores in bankruptcy
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