NewsMacroFreight Sector Distress: Supply Chain Providers Announce Over 1,200 Job Cuts Amid Wave of Bankruptcies

Freight Sector Distress: Supply Chain Providers Announce Over 1,200 Job Cuts Amid Wave of Bankruptcies

Author: FreightWaves·

Key Takeaways

  • Amazon plans to temporarily close its 1 million-square-foot Port St. Lucie, Florida, fulfillment center on September 17, affecting 494 employees while the property undergoes a $200 million renovation with a planned reopening in late 2028.
  • Ten companies—seven from the trucking, courier, or logistics sectors and three freight-dependent manufacturers and distributors—filed for Chapter 11 bankruptcy protection during the mid-July period.
  • Small and midsize carriers that expanded during the 2020 to 2022 freight boom have been disproportionately affected by subsequent rate compression and weaker shipping volumes.
  • Temco Logistics disclosed 223 layoffs across Georgia, Texas, and Florida as it discontinues flatbed delivery operations nationwide.
  • Freight Handlers Inc. filed a WARN notice covering 168 employees at five Publix Super Markets distribution centers in Florida following the loss of its third-party unloading contract.
Freight Sector Distress: Supply Chain Providers Announce Over 1,200 Job Cuts Amid Wave of Bankruptcies

Companies across the freight economy disclosed plans to eliminate at least 1,222 jobs between July 10 and July 24, as warehouse operators, delivery providers, and manufacturers continued consolidating facilities and reconfiguring their networks. The layoffs and bankruptcies come amid a prolonged freight downturn that took hold in 2023, when excess capacity built up during the pandemic-era logistics boom collided with softening shipping demand.

Amazon, Temco Logistics, and Freight Handlers Inc. accounted for the majority of the announced layoffs, while 10 transportation, distribution, and freight-dependent businesses filed for Chapter 11 bankruptcy protection during the same period. The wave of filings reflects a broader pattern documented across the industry: small and midsize carriers, which expanded rapidly during 2020–2022 freight spikes, have been disproportionately vulnerable to the rate compression and weaker volumes that followed.

Amazon's Temporary Fulfillment Center Closure

The largest single announcement came from Amazon (Nasdaq: AMZN), which plans to temporarily close its 1 million-square-foot fulfillment center in Port St. Lucie, Florida. The closure will affect 494 employees while the property undergoes a $200 million renovation. The facility is scheduled to shut down on September 17 and reopen in late 2028, making the workforce reduction temporary rather than a permanent market exit. The investment underscores the contrast between well-capitalized logistics giants reconfiguring their footprints and smaller operators forced to wind down entirely.

Final-Mile and Warehouse Layoffs

Temco Logistics disclosed 223 layoffs across three states as the final-mile provider discontinues flatbed delivery operations nationwide. The company plans to eliminate 92 positions in Lithonia, Georgia; 71 in West Dallas; and 60 in Hialeah, Florida.

Freight Handlers Inc., commonly known as FHI, filed a Worker Adjustment and Retraining Notification covering 168 employees at five Publix Super Markets distribution centers in Florida. WARN filings are required under federal and state law when employers plan large-scale layoffs or facility closures, providing advance notice to affected workers. According to the notice, the permanent layoffs follow the loss of FHI's third-party unloading contract.

Additional permanent closures or workforce reductions were filed by facilities operated by GEODIS, CJ Logistics America, GXO Logistics, Niagara Bottling, and International Paper.

Logistics and Manufacturing Layoffs Announced July 10–24

The announced layoffs do not necessarily mean all 1,222 employees have already been separated. Several notices list effective dates in September, with Amazon's closure planned for September 17.

International Paper said its Carrollton, Texas, packaging plant will permanently close around September 14, affecting 45 hourly workers and 19 salaried employees. The company attributed the decision to an ongoing network optimization strategy under CEO Andy Silvernail.

GEODIS plans to close its facility at 1950 Palmetto Ave. in Redlands, California, eliminating 81 positions beginning September 3. GXO's reductions in San Bernardino are scheduled for September 18, while Niagara Bottling's Woodridge, Illinois, filing covers 57 employees affected by a plant closure.

Ten Companies Seek Chapter 11 Protection

The period from July 10 to July 24 also produced Chapter 11 filings from seven trucking, courier, or logistics businesses and three freight-dependent manufacturers and distributors. Industry data show that thousands of trucking companies have filed for bankruptcy since the freight market began contracting, with fleets of fewer than 10 trucks hit hardest.

Eagle Logistics LLC, a Wayne, New Jersey-based general freight carrier, filed for protection on July 21 with liabilities estimated between $1 million and $10 million and assets of no more than $50,000. The filing stands out because Eagle Logistics is substantially larger than the other carriers in the bankruptcy group. The company was listed with 151 power units and 242 drivers and operated a dedicated U.S. Postal Service team route between Jacksonville, Florida, and Jersey City, New Jersey. The source material does not state what prompted Eagle Logistics to seek court protection.

Power Lane Logistics Distribution & Warehousing Inc. filed Chapter 11 in California on July 22. The Tracy-based warehousing and transportation provider listed both assets and liabilities between $1 million and $10 million. Its federal operating authority was listed as not authorized, although its USDOT registration remained active.

Other transportation-related filings included:

  • Royal Express Delivery Inc., a Simi Valley, California-based courier that historically operated 18 vehicles and employed 22 drivers.
  • Rambo Transport Inc., a Bakersfield, California-based carrier operating five power units and employing eight drivers.
  • C-M Transport LLC, a Vassar, Michigan-based livestock and general freight hauler with five power units and four drivers.
  • Redefined Transportation Inc., a Long Beach, California-based intermodal drayage carrier operating 17 tractors and 28 chassis.
  • TeamSeven Logistics/Chosen Spirit, a Green Bay, Wisconsin-based carrier listed with one power unit and one driver.

Court filings generally did not identify the specific business conditions that led these companies to seek bankruptcy protection. Safety statistics, fleet counts, or prior authority interruptions contained in carrier databases provide operational context but do not establish the cause of the bankruptcy cases.

Freight-Dependent Distributors and Manufacturers Restructure

Three companies outside the core trucking sector also filed Chapter 11 petitions.

Tradavo Inc., a Lakewood, Colorado-based wholesale supplier serving campground and hospitality retailers, filed on July 16. The company reported assets between $100,000 and $500,000 and liabilities between $1 million and $10 million.

Collabow Inc., a Los Angeles-based women's apparel manufacturer and wholesaler, filed on July 14 with both assets and liabilities estimated between $1 million and $10 million. The company was listed with approximately 45 to 50 full-time employees and used wholesale and e-commerce distribution channels.

World Food LLC, a Florida perishable prepared-food manufacturer, filed on July 13 with assets under $50,000 and liabilities estimated between $500,000 and $1 million. The provided court summary did not state a reason for the filing. The company was previously estimated to employ between 160 and 200 people.

The latest notices indicate that freight-sector distress is extending beyond small trucking companies, with major warehouse networks, final-mile providers, and freight-dependent manufacturers closing facilities or restructuring operations while more than 1,200 jobs face elimination.