Montgomery Transportation Shuts Down as Freight Recession Continues to Impact Trucking Sector

Montgomery Transportation Closes Amid Freight Market Struggles

Montgomery Transportation, a Birmingham, Alabama-based flatbed carrier established in 2011, has ceased operations as of October 9, 2025, and is preparing to file for Chapter 7 bankruptcy. The shutdown marks a significant event in the ongoing freight recession that continues to strain the trucking industry, particularly mid-size and larger carriers.

Background on Montgomery’s Operations and Workforce

At the time of closure, Montgomery employed roughly 650 personnel. Its fleet included 449 tractors operated by Montgomery Transport, alongside RM Logistics and MT Select units. The company specialized in over-the-road flatbed freight, heavy haul, and third-party logistics services, working both with company drivers and owner-operators.

The Failed Acquisition and Financial Challenges

Montgomery’s closure followed the collapse of a proposed sale to an affiliate of PS Logistics, another Birmingham-based flatbed carrier ranked third among flatbed specialists in North America. One Equity Partners, the private equity firm which acquired Montgomery in 2022, had sought to divest due to declining freight rates, an aging vehicle fleet, and rising maintenance expenses. Negotiations to sell to PS Logistics’ unit, P&S Transportation, deteriorated with legal obstacles, including a temporary restraining order in late September 2025 that disrupted the anticipated September 30 closing.

Originally planning a Chapter 11 bankruptcy filing with P&S as a stalking horse bidder, the failure to finalize the deal forced Montgomery Transportation to shutter operations outright and pivot toward Chapter 7 liquidation.

Industry Context: The Freight Recession’s Lingering Effects

Montgomery Transportation is one of the largest carriers to succumb during an unusually prolonged freight downturn — a slump that has lasted well beyond typical freight cycle norms. This recessionary environment has led to widespread financial stress, forcing numerous carriers to reduce capacity or cease operations altogether. Recent quarters have witnessed at least 17 bankruptcies of trucking fleets with over 250 tractors, underscoring the sharp challenges facing the sector.

Impact on Workforce and Industry Reputation

The company’s closure triggered a noticeable demand for experienced drivers, as reflected by recruitment efforts from other Alabama carriers. Despite the tough market conditions, Montgomery’s drivers remain highly regarded for their professionalism and reliability, highlighting a valuable human asset that the industry still needs.

Clarifications From Leadership

Rollins Montgomery, founder and former CEO of Montgomery Transportation, has publicly rejected claims that personal actions or litigation contributed to the deal’s fallout and subsequent company difficulties. Emphasizing his longstanding commitment to the enterprise he built, Montgomery expressed concern for displaced employees and affirmed his intentions never to harm the business.

Logistics Implications of the Montgomery Transport Closure

The ripple effects of such closures extend beyond local regions, influencing freight capacity, delivery timelines, and even shipment rates. As one flatbed carrier vanishes from the market, freight forwarding and dispatch operations may encounter increased pressure to source alternative providers. The shortages can lead to longer haulage times and higher costs, especially for bulky or specialized shipments requiring flatbed equipment.

In a logistics landscape where timely delivery and reliable distribution form the backbone of supply chains, maintaining consistent transport availability is a balancing act. Platforms providing transparent and affordable connections between freight shippers and carriers, like GetTransport.com, become essential. They offer versatile services accommodating cargo deliveries, household relocation, and large freight, ensuring supply chains remain resilient despite industry fluctuations.

Key Points Summary

• Montgomery Transportation, a flatbed carrier with a 650-employee workforce, has closed and will liquidate under Chapter 7.
• The collapse of a sale to PS Logistics affiliate triggered the shutdown amid ongoing freight market pressures.
• Rising maintenance costs and weak freight rates challenged Montgomery’s sustainability.
• The closure highlights the extensive impact of a freight recession that has caused numerous carriers of similar size to file bankruptcy.
• The tight flatbed capacity affects logistics providers needing reliable haulage services.
• Experienced drivers from Montgomery are actively sought after in the labor market, showing retained talent value.

Your Experience Matters

While industry reports and reliable reviews paint a picture of the freight market’s current hardships, they can’t replace the firsthand insights gained from direct experience. For freight operators and shippers navigating these turbulent times, platforms like GetTransport.com provide an edge by offering access to a broad network of carriers worldwide at competitive pricing. The transparency and convenience allow customers to avoid surprises and make well-informed shipping decisions, whether moving parcels, pallets, bulky items, vehicles, or housemove cargo.

GetTransport.com empowers users to explore cargo transportation options with flexible solutions tailored for every shipment size and type. Book your Ride at GetTransport.com and take control of your logistics needs today.

Looking Forward: What This Means for Global Freight Logistics

Although Montgomery Transportation’s liquidation may have limited direct impact on global freight markets, it serves as a clear indicator of the broader fragility in the trucking sector amid economic headwinds. The extended freight recession compels logistics professionals to remain vigilant, agile, and ready to adapt to sudden capacity changes.

GetTransport.com stays committed to tracking these developments and equipping customers with efficient, reliable transport services worldwide. Whether coordinating cargo shipment or full truckload forwarding, planning your next delivery with GetTransport.com can ensure smoother logistics operations in uncertain times. Start planning your next delivery and secure your cargo with GetTransport.com.

Conclusion: Navigating Freight Challenges with Smart Shipping Solutions

The closure of Montgomery Transportation underscores the vulnerabilities affecting freight carriers today—from persistent low rates to fleet upkeep burdens. Such trends reverberate through the logistics chain, affecting haulage, distribution, and delivery reliability. Yet, the demand for quality transport services endures, highlighting the role of innovative platforms that connect shippers with reliable carriers worldwide. GetTransport.com offers an accessible, affordable solution built to meet diverse freight and relocation needs, simplifying the complex web of shipping with transparent pricing and wide-reaching options.

By leveraging these tools, logistics operators and cargo owners alike can maintain continuity, optimize shipment schedules, and avoid costly disruptions. The freight world may be changing, but with the right partners and a proactive approach, every shipment can find its way on time, every time.