APL Cargo Becomes Latest Trucking Industry Casualty, Files Bankruptcy

APL Cargo, an Indiana-based trucking company with 122 drivers and 142 power units, has filed for Chapter 11 bankruptcy.

The filing comes amidst financial difficulties and a pending lawsuit alleging misclassification of drivers. APL Cargo's bankruptcy adds to a growing list of trucking companies that have faced closure in recent years due to economic pressures and industry challenges.

APL Cargo Bankruptcy Details

APL Cargo filed for Chapter 11 bankruptcy protection on June 2, 2024, in the U.S. District Court for the Northern District of Indiana.

• The company, which hauls general freight, fresh produce, and meat, lists its assets and liabilities between $1 million and $10 million.
• The bankruptcy filing also includes Indy National Leasing, a truck leasing company associated with APL Cargo.
• The filing cites the need to reorganize without specifying the reasons in detail. Notably, APL Cargo faces a class-action lawsuit for allegedly misclassifying drivers as independent contractors, violating the Fair Labor Standards Act and Indiana wage laws.

Major Trucking Company Closures in Recent Years

The trucking industry has been hit hard over the past five years, with several significant closures:

1. Yellow Corporation: In August 2023, LTL carrier Yellow announced bankruptcy, ending nearly a century of operations and impacting approximately 30,000 jobs. The closure followed disputes with the International Brotherhood of Teamsters over the "One Yellow" business plan.
2. Celadon Group Inc.: Indiana-based Celadon filed for Chapter 11 bankruptcy in December 2019, abruptly ceasing operations and laying off around 4,000 workers. The closure followed fraud charges against company executives.
3. LME Inc.: Minnesota-based LME Inc. shut down in July 2019, closing over 40 terminals and laying off about 600 workers. The closure followed a legal order to pay $1 million in back pay to union workers.
4. Dillon Logistics: Illinois-based Dillon Logistics closed in September 2021, impacting 342 drivers. The company was founded in 1980.
5. HVH Transportation: Denver-based HVH Transportation ceased operations in August 2019, affecting 342 drivers and 344 power units.
6. Arnold Transportation Services Inc.: In May 2024, Arnold Transportation filed for Chapter 7 bankruptcy, laying off 157 employees. The company had been acquired by Pride Group Logistics in 2022.

The wave of bankruptcies and closures highlights ongoing challenges in the trucking industry, including economic pressures, regulatory burdens, and market fluctuations.

As freight demand continues to face uncertainties, many wonder if the industry will see more companies fold or if there will be a rebound.

Sources: FreightWaves | CDLLife