STG Logistics filed for Chapter 11 bankruptcy on January 12, 2026, citing $1.2 billion in debt as the U.S. freight recession persists. Court papers for the STG Logistics Chapter 11 bankruptcy describe falling demand, lower rates, and higher expenses across intermodal and warehousing operations. The 41-year-old Dublin, Ohio company ran 15,000 intermodal containers, 3,300 chassis, and 4.5 million square feet of space with over 2,150 drivers. STG sought $294 million in debtor-in-possession financing after entering with $34 million in unrestricted cash; creditors include Union Pacific, CSX, and Kansas City Southern de México. Industry data show increased bankruptcies in 2025, rail intermodal softness, and a shift to private fleets handling 70.4% of outbound shipments.
00:00America's trucking recession claims another victim.
00:03$1.2 billion debt buries Ohio trucking giant and 2,150 jobs.
00:10The freight recession that began in 2022 has now claimed one of America's oldest logistics giants.
00:16STG Logistics, a 41-year-old Dublin, Ohio, company operating 15,000 intermodal containers
00:22and employing over 2,150 drivers, filed for Chapter 11 bankruptcy on January 12, 2026,
00:31carrying $1.2 billion in debt.
00:34The collapse shows how tariffs, weak freight, and rising costs are squeezing even established carriers,
00:39and the paperwork reveals why.
00:42Operating 15,000 intermodal containers, 3,300 chassis, and 4.5 million square feet of warehouse space nationwide,
00:51the company employed over 2,150 drivers and thousands more across affiliates.
00:58The freight recession, beginning in March 2022, persisted through 2025.
01:04Long-haul truckload demand fell 25% in early 2025, while freight rates dropped 30% below prior peaks.
01:11Rising labor, insurance, and operating costs squeezed margins, forcing fleet reductions and operational strain.
01:17Private fleets now handle 70.4% of U.S. outbound shipments, reducing opportunities for four-hire carriers like STG.
01:26Shippers increasingly moved freight in-house to cut costs, eroding volume and pricing power,
01:31which contributed directly to STG's revenue decline of $227 million across 2023 to 2025.
01:38New tariffs, in early 2025, further disrupted import volumes, with rates between 10% to 145% and unpredictable changes.
01:50STG's volume fell 7% in 2025 versus 2024, compounding financial stress during a period of already thin cash reserves.
01:58STG entered bankruptcy with just $34 million in unrestricted cash, requesting $294 million in debtor-in-possession financing to maintain operations.
02:10Creditors, including Union Pacific, CSX, and Kansas City, southern DeMexico faced exposure,
02:16while thousands of employees confronted potential job losses.
02:20Freight company bankruptcies rose 35% year-over-year in 2025.
02:24The collapse followed Yellow Corporation's 2023 failure, signaling that the Great Freight Recession continued to purge undercapitalized carriers while oversupply persisted.
02:36Weak consumer spending, slower GDP growth, and a 4-to-1 oversupply-to-demand gap in industrial real estate, stressed warehousing, and intermodal operations.
02:47U.S. rail intermodal volumes fell late in 2025, reflecting structural challenges beyond seasonal fluctuations.
02:54With shippers favoring private fleets, for higher carriers face long-term disadvantages.
03:00Analysts project that bankruptcies like STG's may accelerate consolidation, potentially raising rates if exits continue and demand stabilizes.
03:09Under Chapter 11, STG seeks to reduce debt, streamline assets, and possibly merge or sell divisions.
03:16Success depends on stabilizing demand, easing tariffs, and continued capacity exits over the next 12 to 18 months.
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