Illinois Trucking Companies Battle Bankruptcy and Closures

Illinois is seeing a troubling trend when it comes to its trucking industry. Several transportation companies have recently shut their doors or filed for bankruptcy over the past few months. With freight demand slowing and high operating costs, both large and small carriers are feeling significant pressure.

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In early April, Madison-based LTI Trucking Services closed its operations without warning. The company employed around 250 drivers and hauled products for major brands like KraftHeinz, Nestlé, Walmart, Tyson, and several others. LTI did not file for bankruptcy or explain its sudden exit. A company-wide email simply said,

After exhausting all possible options and careful consideration of our circumstances, we have made the difficult decision to close LTI Trucking Services

The shutdown was a blow to regional freight capacity, especially for companies that relied on LTI’s services in the immediate area.

A few weeks later, AZA Transportation Inc., located in Mount Prospect, filed for bankruptcy under Subchapter V of Chapter 11. AZA runs 70 trucks and focuses on routes between the Midwest, East Coast, and Canada. Like many carriers, it’s been struggling to keep up with weaker demand and tighter margins. This has become increasingly apparent with the closure of brick-and-mortar retailers and a heavy push towards digital sales and online giants like Amazon.

The latest blow to Illinois' trucking industry just occurred on June 9th. Nortia Logistics Inc., based in Franklin Park, filed for Chapter 11 bankruptcy. With 45 drivers, nearly 60 power units, and nine warehouses, Nortia is a sizable player in the freight and logistics space. Court records show the company owes several million dollars, including more than $3.8 million to Union Pacific Railroad and hundreds of thousands more to transportation and logistics partners.

My family has several members who drive trucks for a living. It's often a thankless job, with long hours and much time spent away from home and family. It pains me to think they could lose their livelihood. For these companies, the challenges aren’t just financial; they represent jobs lost, routes dropped, and potentially huge ripple effects across supply chains. As more Illinois-based carriers falter, it’s becoming clear that the trucking industry is entering a time of painful transition. I don't know what will happen next, but whatever does could reshape how freight moves across the country. For better or worse.