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Thin margins and labor issues have hurt the freight industry. The uncertainty of tariffs has created problems as well. Competition, however, remains intense. Shipping companies work on narrow margins in an incredibly competitive space. That makes any gains in efficiency incredibly valuable. And the problem is getting worse, not better. “Fleet margins are likely to be squeezed even tighter in 2025,” according to the annual Council of Supply Chain Management Professionals State of Logistics Report. Tariffs, varying demand, and political uncertainty have all weighed heavily on the shipping and transportation industry. Despite optimism, disruptions and economic uncertainties still weigh heavily on the sector — with the new tariff war being an especially significant wild card that threatens to both raise costs and suppress demand, thus reducing freight volumes,” the report shared. Many companies, however, are looking for technology to help optimize their businesses. “Technology use continues to explode, as both shippers and carriers accelerate their efforts to deploy tools such as IoT, blockchain, analytics, AI, and machine learning to optimize their logistics operations for efficiency, resilience, and sustainability,” it added. Now, a promising technology company that was working to disrupt the space has filed for Chapter 11 bankruptcy. Zuum Transportation files Chapter 11 bankruptcy Zuum Transportation, a California-based logistics technology provider for manufacturers, retailers, freight brokers, and carriers, filed for Chapter 11 bankruptcy protection on Nov. 6 in U.S. Bankruptcy Court for the Central District of California (Santa Ana Division) under Case No. 8:25‑bk‑13127‑MH. It was only a few years ago (2022) that the company celebrated raising $22 million in new financing and landing an asset-backed $10 million loan commitment from Bridge Bank. “It’s rewarding to work with a company like Zuum that is making a difference for such a great stable of internationally recognized clients,” said Justin Vogel, senior vice president in Bridge Bank’s Capital Finance Group in a press release. “Bridge Bank appreciates the innovation Zuum brings to the logistics industry.” Zuum offers shipper transportation management systems (TMS), freight broker software, a carrier TMS and a mobile app for truck drivers that are connected within the company’s Logistics Super Platform. The tools enable customers to enhance the efficiency and effectiveness of their logistics operations while simultaneously automating their transportation networks. Zuum Chapter 11 bankruptcy details Zuum filed a voluntary Chapter 11 petition on November 6, 2025, in U.S. Bankruptcy Court for the Central District of California (Santa Ana Division) under Case No. 8:25‑bk‑13127‑MH. Source: Pacer Monitor Assets and liabilities are both estimated in the $10 million to $50 million range. The filing lists about 49 unsecured creditors and identifies the company’s board resolution (October 23, 2025) approving the Chapter 11 filing. The case is assigned to Judge Mark D. Houle. The company intends to continue operations during the bankruptcy and is likely seeking debtor‐in‐possession (DIP) financing or other restructuring tools. The company named multiple reasons for the filing: Financial strain from limited cash flow and unpaid carrier invoices. Debt burden tied to staffing and technology development. The company is continuing operations (so far) while it pursues restructuring under Chapter 11. Source: PacerMonitor Recent trucking logistics Chapter 11 bankruptcy filings Nortia Logistics Inc. (Illinois): June 9, 2025, Chapter 11, assets $1.4 million, liabilities $5.8 million Source: Trucking Dive Balkan Express/Balkan Logistics (Texas): April 30, 2025, Chapter 11, fleet 159 trucks Source: TheStreet Dolche Truckload Corp. (Illinois): June 2025: Chapter 11, assets and liabilities $1 million‑$10 million Source: Freight Caviar AZA Transportation Inc. (Illinois): May 14, 2025, Subchapter V Chapter 11; small‑business trucking and freight Source: TheStreet JSPEED LLC: October 17, 2025, Chapter 7, assets $0‑100,000, liabilities $100,000‑$1 million Source: Bankruptcy Observer Mister M&K Trucking, LLC: October 17, 2025, Chapter 11; assets $100,000k‑$1 million, liabilities $1 million‑$10 million Source: Bankruptcy Observer Yellow Corporation: August 2023 Chapter 11 Major LTL carrier, 30,000 jobs affected A number of factors have figured into these filings. “The geopolitical landscape has been rough terrain for the transport industry. The conflicts in Russia and the Middle East have damaged supply chains, leading to shipping delays and an inability to find replacement suppliers. Adding to that, the growing tension between the U.S. and China could further complicate matters,” Creditsafe shared. Labor is also a problem.
