Truck Companies Going Bust Is a Welcome Sign — Really
Bankruptcies may be a tough pill to swallow for individual operators, but shrinking the overcapacity will strengthen the industry.
Not enough cargo to go around.
Photographer: Allison Zaucha/Bloomberg
Pride Group, a large trucking company based in Canada that also operates in the US, declared bankruptcy in the last week of March. Nationwide Cargo, an Illinois-based company with 171 drivers, and Newsome Trucking in Jasper, Georgia, which employs 60 drivers, went bust in March. TBL Logistics in Virginia filed for bankruptcy liquidation at the end of February, according to logistics news website FreightWaves.
Although this may be a tough pill to swallow for these individual companies, this is good news for the trucking industry. The freight industry has been in recession for more than a year, hampered by overcapacity and lower demand for goods after people shifted to spending on services and entertainment after being cooped up during the pandemic.