How Tariffs Are Driving Facility Closures and Layoffs Across U.S. Logistics in 2025

Logistics in Crisis: How Tariffs Are Shutting Down America’s Supply Chain Backbone

In 2025, the American logistics sector is under extraordinary pressure. While headlines often focus on geopolitical flashpoints or macroeconomic trends, one force has quietly but decisively reshaped the industry: tariffs. Following multiple rounds of tariff escalations in 2024 and early 2025, a wave of closures, layoffs, and bankruptcies has swept across logistics and freight companies.

Universal Logistics. Swissport. Geodis. These are not fringe players; they are key nodes in the national supply chain. Now, they are scaling back, consolidating, or vanishing entirely. With shipping volumes from China down as much as 50 percent year-over-year and contract terminations accelerating, the industry is experiencing a structural disruption that few predicted would arrive this quickly.

This post examines the most significant logistics firm closures and layoffs of 2025, why they matter, and what they signal about the future of U.S. supply chain stability.

Major Layoffs and Facility Closures in U.S. Logistics (2025)

From shuttered warehouses in Texas to cargo terminal downsizing in New Jersey, logistics providers across the country have been forced to cut jobs and exit key locations. Many cite the same set of pressures: declining international shipments, tariff-driven cost increases, and sudden contract losses from major clients like Amazon.

Top Company Closures and Layoffs

Universal Logistics Holdings — Closed two subsidiaries in Detroit, laying off 677 workers including truck drivers, warehouse staff, and clerical personnel.
Geodis — Shut down distribution centers in Texas, Georgia, New York, and Illinois. Affected 384 workers across fulfillment and administrative roles.
Swissport Cargo Services — Downsized cargo operations in Atlanta and Newark. Laid off 613 workers after losing major contracts, including with Amazon.
Kroger Co. — Closed e-commerce delivery hubs in San Antonio, Austin, and Miami. Rising shipping costs and reduced freight volume made operations unsustainable.
RXO Logistics — Eliminated 114 positions in Michigan after key contract cancellations.

Table: Major Logistics Closures and Layoffs Linked to Tariffs (2025)

Company	Locations Affected	Closure Type	Layoffs
Universal Logistics Holdings	Detroit (MI)	Subsidiary closures	677
Geodis	TX, GA, NY, IL	Distribution center closures	384
Swissport Cargo Services	Atlanta (GA), Newark (NJ)	Cargo terminal downsizing	613
Kroger Co. (Logistics)	San Antonio, Austin, Miami	Delivery hub closures	Not disclosed
RXO Logistics	Michigan	Contract-related layoffs	114

These closures are not isolated. They reflect an industry struggling to navigate unpredictable tariff policies, collapsing contract stability, and reduced international shipment volumes. Thousands of logistics professionals — from forklift operators to dispatchers — have been affected by this downturn.

Logistics Bankruptcies Surge in 2025: Who’s Filing and Why

Beyond facility closures and layoffs, 2025 has brought a sharp rise in logistics company bankruptcies. From national carriers to regional trucking firms, a growing list of operators are seeking court protection amid shrinking volumes, tariff-related cost shocks, and client attrition.

According to industry data, the logistics sector has seen the highest rate of commercial bankruptcy filings in over a decade. May 2025 alone recorded 733 Chapter 11 filings; many involving freight, parcel, and supply chain firms.

Key Bankruptcy Filings in the Logistics Sector (2025)

KPower Global Logistics LLC — Filed Chapter 11 in May 2025. One of the largest regional trucking operators to enter reorganization this year.
Balkan Express / Balkan Logistics — Filed in April. Texas-based firm operating over 150 trucks; cited unsustainable debt and declining contract freight.
Dolche Truckload Corp. — Illinois-based, filed in June. Managed 60 drivers and a fleet of 57 trucks. Revenue losses triggered by freight volume decline.
Deliver It (DI Overnite LLC) — Filed Chapter 7 in July 2025. A last-mile carrier serving over 40,000 daily packages across the Western U.S.; ceased all operations and laid off 700+ workers.
Nortia Logistics — Major provider for USPS. Abrupt closure and Chapter 11 filing in June; over 480 drivers laid off.

Table: Notable Logistics Bankruptcies in 2025

Company	Bankruptcy Type	Filing Date	Key Details
KPower Global Logistics LLC	Chapter 11	May 2025	Reorganization of a large regional trucking and logistics firm
Balkan Express / Balkan Logistics	Chapter 11	April 30, 2025	Texas-based operator with 159 trucks and 160+ drivers
Dolche Truckload Corp.	Chapter 11	June 2025	Illinois firm citing volume collapse and $10M in liabilities
Deliver It (DI Overnite LLC)	Chapter 7	July 15, 2025	Western U.S. parcel carrier with 700+ layoffs; ceased operations
Nortia Logistics	Chapter 11	June 9, 2025	USPS contractor; abrupt closure with 480+ job losses

These bankruptcies expose a fragile logistics ecosystem. As tariffs cut trade volumes and raise operating costs, many firms — even longstanding ones with national footprints — are struggling to survive. In many cases, a single contract loss or freight downturn proved enough to tip the balance.

Why Are Logistics Companies Failing in 2025?

The collapse of so many logistics firms in 2025 is not the result of a single bad quarter. It’s the culmination of sustained, sector-wide stress. While tariffs are the dominant external pressure, they have amplified pre-existing vulnerabilities across freight, parcel, and 3PL companies. The firms that failed this year typically shared one or more of the following risk factors.

1. Plunging International Shipment Volumes

Ocean freight from China to the U.S. has declined by 20 to 50 percent year-over-year, driven by retaliatory tariffs and import cost surges. Logistics companies built around high-volume transpacific flows have seen sharp revenue drops. Fewer inbound containers mean fewer contracts, leaner operations, and underused infrastructure.

2. Loss of Key Contracts

Firms like Swissport and RXO lost major clients as Amazon, retail chains, and manufacturers restructured supply routes or cut import volumes. Many logistics providers depended on a few high-volume clients — once those contracts were gone, margins collapsed.

3. Tariff-Created Cost Pressures

With tariffs inflating the price of goods across sectors, logistics providers found themselves caught between rising costs (fuel, warehousing, customs processing) and clients who refused to pay more. The result? Margin erosion and cash flow instability, especially for small to mid-sized firms.

4. Port Traffic Shifts and Regional Disruption

Tariff risk pushed many importers to consolidate shipping through larger ports, reducing volumes at secondary ports like Oakland. Regional logistics providers, especially those anchored to a single port or corridor, saw their traffic drop off dramatically.

5. Poor Diversification and Overexpansion

Several failed firms were overly dependent on one mode (e.g., over-the-road trucking) or one type of client (e.g., e-commerce). Others overinvested during the 2021–2022 shipping boom and were left with excess fleet, labor, and warehousing capacity they could no longer sustain.

Summary Table: Common Risk Factors in 2025 Logistics Failures

Risk Factor	Description	Examples
Drop in international freight volume	20–50% YoY decline from China routes	Universal Logistics, Dolche Truckload
Loss of high-value contracts	Clients like Amazon terminated or scaled down vendor relationships	Swissport, RXO
Inability to pass on rising costs	Margins squeezed by fuel, labor, and facility cost inflation	Deliver It, Balkan Logistics
Overdependence on one geography	Secondary port logistics providers lost business to major hubs	Smaller 3PLs in Oakland, Savannah
Overexpansion post-COVID	Companies that scaled rapidly during 2021–2022 freight boom	Several regional carriers and warehouse operators

Each of these vulnerabilities was exposed or accelerated by the 2024–2025 tariff regime. While the policies targeted international competitors, their most direct victims may be the domestic logistics providers that kept U.S. supply chains moving.

What This Means for Freight Providers and Logistics Service Partners (LSPs)

The wave of closures and bankruptcies in 2025 offers more than a warning. It provides a strategic blueprint for logistics providers still standing. The firms most at risk in today’s market are those without diversified clients, adaptive cost structures, or visibility into shifting global trade flows.

To stay resilient, LSPs must take proactive steps to identify vulnerabilities and adapt operations to a trade environment shaped by protectionism, tariff volatility, and rapid contract changes.

5 Strategic Takeaways for Logistics Professionals

Audit Client and Trade Route Concentration
If more than 30 percent of your revenue is tied to one client or one trade lane (e.g., China–West Coast), it’s time to diversify. Overdependence magnifies disruption risk when tariffs or sourcing strategies shift.
Negotiate More Flexible Contracts
Build clauses that allow rate adjustments or renegotiations if input costs spike due to new trade policies. Static pricing models will collapse under long-term tariff pressure.
Invest in Regional Port and Route Flexibility
Providers tied exclusively to secondary ports (e.g., Oakland, Baltimore) are being squeezed out. Build capabilities to serve both coastal megahubs and inland transloading points.
Strengthen Financial Cushion and Scenario Planning
Cash flow is king in downturns. Prioritize healthy working capital, reduce unproductive overhead, and run stress tests for demand shocks or sudden contract loss.
Reassess Your Exposure to Tariff-Sensitive Goods
Certain commodities — electronics, apparel, and automotive parts — face higher volatility under trade policy changes. Consider shifting toward more stable freight segments or expanding value-added services.

Warning Signs to Watch For

Shipment volumes have declined by 15 percent or more in a key segment
Recent client inquiries about renegotiating or exiting contracts
Operating costs (e.g., labor, drayage, insurance) are rising faster than billables
Delayed payments or growing receivables from tariff-exposed clients
Layoff rumors or bankruptcies among key competitors or trade partners

Logistics professionals who ignore these signals risk following in the footsteps of Deliver It, Balkan Express, and Nortia Logistics — all of whom faced sudden failure after months of mounting pressure. For LSPs, 2025 is not just a challenging year; it’s a turning point that will reward strategic flexibility and penalize complacency.

Resilience in a Reshaped Logistics Landscape

The events of 2025 have made one thing clear: tariffs are no longer a background policy issue — they are an immediate operational threat to logistics firms of every size. From warehouse closures to multi-million-dollar bankruptcies, the ripple effects have exposed vulnerabilities in freight networks, regional port models, and supplier dependencies.

But within the volatility lies opportunity. Logistics firms that can diversify routes, stabilize their financial models, and gain clearer visibility into global trade flows will emerge stronger.

How Can LSPs Stay Ahead

TRADLINX helps LSPs navigate volatile trade conditions by improving shipment visibility, optimizing freight routes, and streamlining carrier coordination especially for clients impacted by tariff shifts and contract changes.

Whether you’re managing China-origin cargo or expanding to new sourcing markets, TRADLINX enables more agile decision-making and reduced operational risk in an increasingly fragmented trade environment.

Frequently Asked Questions (FAQs)

What logistics companies have closed in 2025 due to tariffs?

Notable closures include Universal Logistics Holdings (subsidiary shutdowns), Swissport (cargo downsizing), Geodis (distribution center closures), and Deliver It (full shutdown and bankruptcy). Many cited reduced volumes and contract losses linked directly to tariff disruptions.

How have tariffs impacted U.S. freight and logistics companies?

Tariffs have reduced shipment volumes from key markets like China, triggered contract cancellations, inflated operating costs, and caused regional supply chain instability. These effects have pushed many logistics firms into bankruptcy or forced layoffs and facility closures.

Which types of logistics firms are most vulnerable to tariffs?

Companies heavily reliant on international shipping lanes (especially China–U.S. routes), last-mile delivery firms for tariff-impacted e-commerce, and those dependent on a few large retail clients are most at risk. Regional port providers and under-capitalized 3PLs have also been hit hard.

Are smaller ports losing traffic because of trade policy?

Yes. As importers consolidate shipments through larger, more tariff-resilient ports, smaller ports like Oakland have seen double-digit volume declines. This shift reduces business for local logistics firms serving those corridors.

What can LSPs do to reduce risk in a volatile tariff environment?

LSPs should diversify trade lanes and clients, renegotiate contracts with flexibility clauses, build financial buffers, and expand into value-added services to reduce reliance on volatile shipping volumes.

Sources and Further Reading

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How Tariffs Are Driving Facility Closures and Layoffs Across U.S. Logistics in 2025

Logistics in Crisis: How Tariffs Are Shutting Down America’s Supply Chain Backbone