Freight downturn deepens as supply chain bankruptcies mount

Truckers, fulfillment providers and manufacturers restructure amid overcapacity and low rates

Bankruptcy activity continued to ripple through the U.S. supply chain sector, reflecting mounting financial pressure on trucking, logistics and manufacturing companies. (Photo: Jim Allen/FreightWaves)

Bankruptcy filings continued to mount across the U.S. supply chain sector in January and February, underscoring persistent financial pressure on trucking companies, third-party logistics providers, repair shops and manufacturers.

The latest filings reflect the prolonged strain of a freight market still grappling with excess trucking capacity, soft spot rates and uneven freight volumes. 

Here’s a breakdown of the latest Chapter 11 filings:

Bee & G Enterprises LLC

Tacoma, Washington | Filed Feb. 14 | Western District of Washington

General freight trucking (intermodal and drayage)

Bee & G Enterprises LLC, a Tacoma-based intermodal and drayage carrier, filed for Chapter 11 protection on Feb. 14.

The company operates seven trucks with six drivers and primarily hauls intermodal containers and general freight. As of January, its carrier authority remained active, though its broker authority had been revoked.

Court records do not specify the reason for the filing.

Assets: $1M–$10M

Liabilities: $1M–$10M

Creditors: 1–49

Mare Island Dry Dock LLC

Vallejo, California | Filed Feb. 14 | Eastern District of California

Ship repair and maintenance

Mare Island Dry Dock LLC filed for Chapter 11 protection on Feb. 14 after reporting steep financial losses.

The company cited a 65% decline in sales over three years and the loss of an $11 million U.S. Coast Guard contract. The downturn led to 84 permanent layoffs and the closure of its Vallejo facility in early 2026.

Mare Island previously operated two graving docks capable of servicing vessels up to 780 feet long.

Assets: $10M–$50M

Liabilities: $10M–$50M

Creditors: 100–199

Santin Auto and Truck Repair Center LLC

San Antonio | Filed Feb. 13 | Western District of Texas

Heavy-duty truck and automotive repair

San Antonio-based Santin Auto and Truck Repair Center LLC filed for Chapter 11 protection on Feb. 13.

The company provides heavy-duty truck and automotive repair services. Court records do not detail the cause of the filing.

The company previously employed an estimated 5 to 15 workers.

Assets: $1M–$10M

Liabilities: $1M–$10M

Creditors: 1–49

Lancaster Packaging Inc. 

Fitchburg, Massachusetts | Filed Feb. 11 | District of Massachusetts

Industrial packaging distribution

Lancaster Packaging Inc., a wholesale distributor of packaging and industrial supplies, filed for Chapter 11 protection on Feb. 11.

Founded in 1989, the company supplies aerospace and defense customers and employs between 11 and 50 workers. President Marianne Lancaster currently serves on the board of Associated Industries of Massachusetts.

The company remains active in state contracting records, including a 2025 award from the Massachusetts State Lottery Commission.

Assets: $500K–$1M

Liabilities: $1M–$10M

Creditors: 50–99

Assets: $100K–$500K

Liabilities: $1M–$10M

Creditors: 1–49

Fettes Manufacturing Co.

Sterling Heights, Michigan | Filed Feb. 11 | Eastern District of Michigan

Steel and metal manufacturing

Fettes Manufacturing Co., an automotive and industrial steel supplier, filed for Chapter 11 protection on Feb. 11.

The company employs between 11 and 50 workers. It is seeking court-supervised restructuring while addressing obligations to secured creditors. Court documents do not state the specific cause of the filing.

The company previously faced litigation in 2024 related to a promissory note default.

Assets: $1M–$10M

Liabilities: $1M–$10M

Creditors: 50–99

Global Logistics and Fulfillment LLC

Las Vegas | Filed Feb. 10 | District of Nevada

Third-party logistics and fulfillment services

Global Logistics and Fulfillment LLC, a Las Vegas-based third-party logistics provider, filed for Chapter 11 on Feb. 10.

The company specializes in fulfillment and warehousing services and serves customers across the West Coast, including the San Diego region. Founded more than 25 years ago, the firm positioned itself as a cost-saving distribution partner with a global network of logistics relationships.

Court filings list more than 20 creditors owed over $1.5 million.

Assets: $100K–$500K

Liabilities: $1M–$10M

Creditors: 1–49

Employees: 50–200

Southland Manufacturing Inc.

Douglasville, Georgia | Filed Feb. 9 | Northern District of Georgia (Atlanta Division)

Sheet metal manufacturing

Southland Manufacturing Inc. filed for Chapter 11 protection on Feb. 9.

The Douglasville-based sheet metal manufacturer maintains operations in Georgia and reported estimated annual revenue between $12 million and $18 million in 2024, with approximately 85 employees.

The company has operated in the Atlanta industrial sector since at least the late 1990s.

Just Logistics Group Inc.

Dayton, New Jersey | Filed Jan. 4 | District of New Jersey

Intermodal drayage and general freight trucking

Just Logistics Group Inc., a Dayton, New Jersey-based intermodal drayage carrier, filed for Chapter 11 protection on Jan. 4 under Subchapter V as a small business debtor.

Founded in 2013, the company operates a fleet of 10 trucks, 14 drivers and 35 trailers near the Port of New York and New Jersey. Its services include container drayage, refrigerated food transport and beverage logistics across New Jersey, New York and Pennsylvania. The company also provides regional warehousing and fulfillment services.

Court documents do not cite a specific cause for the filing. However, Just Logistics Group was listed as a major unsecured creditor in the 2023 bankruptcy of World and Main (Cranbury) LLC, holding a claim exceeding $673,000 for services rendered. The exposure strained liquidity during a period marked by rising operating costs and tight margins across the drayage sector.

The carrier drove more than 440,000 miles during the 2021 fiscal year and previously received between $150,000 and $350,000 in federal pandemic relief funds to retain 23 jobs.

Assets: Not disclosed

Liabilities: Not disclosed

Chapter Type: Subchapter V (small business reorganization)

Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com