UPDATE: STG Logistics Inc., a major player in the shipping industry, has officially filed for Chapter 11 bankruptcy, marking a significant downturn in the freight sector. The filing occurred on Monday in the US Bankruptcy Court for the District of New Jersey, a move attributed to ongoing challenges from major retailers like Dollar General and Home Depot.
The company, founded in 1985, has reported approximately $1.16 billion in debt while listing its assets and liabilities between $1 billion and $10 billion. This decision comes as the so-called “great freight recession” drags into its fourth year, a downturn that began in March 2022 after a peak in revenue during the COVID-19 pandemic.
In a statement, CEO Geoff Anderman described the filing as a critical step in fortifying STG amidst one of the most severe freight recessions in history. “We are confident that leveraging the Chapter 11 process will best position the business for long-term growth and success,” he stated.
The factors leading to this decision are multifaceted. Chief Financial Officer Tyler Holtgreven pointed to “softening freight demand” and an excess of capacity in the market. Additionally, the rise of private shipping fleets from major retailers, including Dollar General and Home Depot, is cutting into traditional shipping profits. These in-house fleets now represent a historic 70% of all outbound shipments in the United States.
Compounding these issues, President Donald Trump’s tariffs have contributed to an import volume decline of 14% year-over-year in the second half of 2025, with STG experiencing a 7% drop compared to 2024. Rising costs due to inflation and increasing insurance rates have further squeezed operating margins, leaving STG in a precarious financial position.
The implications of STG’s bankruptcy are profound, not only for the company but also for the wider shipping industry, which has already been struggling. As more retailers pivot towards in-house logistics, the future of traditional freight carriers hangs in the balance.
As the situation develops, industry observers are urged to keep an eye on further announcements from STG and other shipping giants facing similar pressures. How this bankruptcy will shape the future of freight logistics remains to be seen, but the urgency of the matter cannot be understated.
Stay tuned for more updates as this story unfolds.
