Trucking in Crisis, Logistics in Bloom
Trucking in Crisis, Logistics in Bloom
The State of Trucking in California, San Joaquin County & Lodi
Executive Summary
The U.S. trucking industry is enduring its longest freight recession this century — now stretching past three years. Nationally, carrier bankruptcies surged throughout 2025 with over 7,300 carriers exiting in a single month, operating authorities declining by more than 19,000 over two years, and drivers logging the fewest miles ever recorded. California faces additional headwinds from AB5 worker reclassification, Advanced Clean Trucks mandates, and the highest operating costs in the nation.
Yet San Joaquin County tells a more complex story. While small carriers and owner-operators face the same existential pressures squeezing the national industry, the county's emergence as Northern California's premier logistics hub has created a parallel boom in transportation and warehousing employment. With Amazon as the county's largest private employer and Transportation & Warehousing commanding nearly 20% of all local jobs, San Joaquin County is simultaneously experiencing a trucking recession and a logistics expansion.
Key National Metrics at a Glance (2024–2025)
1. The Great Freight Recession: Year Four
The U.S. trucking industry has been mired in what analysts call the "Great Freight Recession" since late 2022. After the pandemic-era boom drove explosive capacity expansion — roughly 100,000 new operating authorities were added between 2020 and 2022 — the market crashed as demand normalized while costs continued rising. The result has been a prolonged, painful correction that shows only tentative signs of stabilizing as we enter 2026.
Carrier Population: Shrinking Fast
FMCSA data paints a stark picture of industry consolidation. In 2025, the for-hire carrier population recorded a net decrease of 2,648 operating authorities, with 46% of those losses concentrated in Q4. Over the past two years, the total decline exceeds 19,000 operating authorities. In the first half of 2025 alone, net revocations ran approximately 16% higher than the already-elevated levels of 2024.
Despite this historic capacity purge, an overhang persists. According to FTR Transportation Intelligence, roughly 89,000 — or 35% — more authorized for-hire carriers remain in the market compared to pre-pandemic levels. The small-carrier segment, which makes up the vast majority of the industry (91.5% of carriers operate 10 or fewer trucks), still has 39% more drivers than before COVID.
Bankruptcies: An Accelerating Wave
Formal bankruptcy filings surged throughout 2025. Freight companies filed at least 20 bankruptcy petitions in Q2, 21 in Q3, and 18 or more in Q4. Notable casualties included 40-year-old T.G.S. Transportation of Fresno, California, which closed in July 2025 and filed Chapter 7 liquidation in February 2026. Montgomery Transport of Alabama shut down, leaving nearly 1,000 employees jobless. STG Logistics opened 2026 by filing to restructure approximately $1.2 billion in debt.
One striking data point: more than 7,300 carriers went out of business in a single month in spring 2025 — the highest single-month exit rate in over a year. The problem extends beyond pure trucking: freight brokerages shrank by 8–10% as well.
Drivers & Miles: Doing Less with Less
The trucking workforce contracted alongside the carrier population. The industry employed 3.58 million professional drivers in 2024, down slightly from prior years. BLS data showed for-hire trucking payrolls at about 505,000 in March 2025, suggesting capacity had fallen back to early 2018 levels. Production and non-supervisory employees in long-distance trucking decreased year-over-year for 32 consecutive months.
Drivers who remained on the road drove fewer miles. The National Private Truck Council's 2025 Benchmarking Survey found annual mileage fell to just 80,400 miles per driver in 2024 — a drop of nearly 5,000 miles from the prior year and the lowest number ever recorded in the survey's history. The ATRI reported that empty miles rose to 16.7% and the number of drivers per truck fell to 0.93 as carriers parked underutilized equipment.
2. California: A Uniquely Pressured Market
California's trucking industry faces all the national headwinds plus a uniquely heavy regulatory and cost burden that has made the Golden State the epicenter of carrier distress.
AB5 and the Owner-Operator Squeeze
California's Assembly Bill 5 (AB5) mandates an "ABC test" for worker classification that effectively reclassifies most truck owner-operators as employees. Since driving is the core business of a trucking company, most independent contractors cannot meet the "B prong" requirement. This has exacerbated financial pressures during the broader freight recession, driving additional California companies out of business and creating significant legal risk for the traditional owner-operator model.
Advanced Clean Trucks & Emissions Mandates
CARB's Advanced Clean Trucks regulations require manufacturers to sell increasing percentages of zero-emission vehicles and have banned many older diesel trucks from California roads. By 2032, 25% of new long-haul vehicles and 40% of medium-duty vehicles must have zero emissions. While the current federal administration may modify some requirements, the push toward electrification has already increased costs significantly for carriers operating in or through California.
English Language Proficiency Enforcement
The English proficiency testing enforcement that went into effect June 25, 2025 removed nearly 10,000 commercial truck drivers from the roads nationally. The impact has been particularly felt in California, Texas, and Florida, where many affected drivers operate. Reports indicate some California drivers have become reluctant to leave the state, creating additional regional imbalances in capacity.
California Carrier Casualties (2025)
| Company | Location | Filing / Action | Details |
|---|---|---|---|
| T.G.S. Transportation | Fresno | Ch. 7 Liquidation | 40-yr drayage co.; closed Jul 2025; filed Feb 2026 |
| GSC | Oakland | Ceased Operations | Shut down mid-2025 |
| Supra National Express | So. California | Ch. 11 Bankruptcy | Filed Oct 2025; $10M–$50M liabilities |
| Epic Lightning Fast Svc | San Diego | Permanent Closure | WARN notice filed; 116 employees laid off |
| LS Trucking, Inc. | California | Ch. 11 Bankruptcy | Construction hauler; claims deadline Jan 2026 |
3. San Joaquin County: Logistics Powerhouse
While the national trucking industry contracts, San Joaquin County occupies a unique position as Northern California's fastest-growing logistics hub. The county's transformation from an agricultural economy to a diversified logistics center has created a counter-narrative to the national freight recession — though one with important caveats.
Transportation & Warehousing Dominance
Transportation and Warehousing now commands approximately 19.8% of San Joaquin County employment, making it the county's dominant sector. The warehousing and logistics industry alone employs more than 20,000 workers. The county led the nation with 5.5% annual employment growth, driven largely by this sector's expansion.
This growth is powered by the county's strategic geography: the intersection of major interstate highways (I-5, I-205, SR-99), the Port of Stockton (3.7 million metric tons of cargo in 2024), Class I rail lines (Union Pacific and BNSF), and Stockton Metropolitan Airport's rapidly growing air cargo operations. The county sits at the geographic center of the Northern California Megaregion, a 21-county area with more than 12.6 million people.
Major Transportation & Logistics Employers
| Employer | Location(s) | Role | Status & Notes |
|---|---|---|---|
| Amazon | Tracy, Stockton, Manteca | County's #1 private employer | 2 fulfillment ctrs (Tracy), 1+ (Stockton), Prime delivery (Manteca); 3–4 aircraft/day at SCK |
| FedEx | Tracy (Prologis Park) | Major logistics facility | Large presence in Tracy's logistics corridor |
| UPS | San Joaquin County | Distribution center | Major distribution operations |
| Ryder | San Joaquin County | Distribution center | 3PL and fleet management services |
| Penske Logistics | Stockton | Trucking & warehousing | Actively hiring local Class A CDL at ~$28.84/hr |
| Schneider National | San Joaquin County | Intermodal operations | Major national carrier with regional presence |
| Ashley Furniture | San Joaquin County | Distribution center | Large-scale retail distribution |
| Lowe's | San Joaquin County | Distribution center | Home improvement retail distribution |
| Medline | San Joaquin County | Distribution center | Healthcare products distribution |
| John Deere | San Joaquin County | Distribution center | Agricultural equipment distribution |
| Procter & Gamble | Stockton area | Distribution operations | Consumer goods distribution |
The county also hosts growing distribution operations for Tesla and numerous 3PL providers. The Airpark 599 development — a 272-acre master-planned logistics park adjacent to Stockton Metropolitan Airport and Highway 99 — signals continued investment in the county's logistics infrastructure.
4. Lodi's Trucking Community
Lodi and its surrounding area (including Acampo and Woodbridge) are home to a distinctive trucking community that mirrors the national industry structure: a handful of established multi-truck operations surrounded by dozens of single-truck owner-operators. FMCSA records show approximately 30+ registered carriers with Lodi addresses, the vast majority operating just one truck with one driver.
JSG Trucking Co. — Lodi's Flagship Carrier
The standout local carrier is JSG Trucking Co., a family-owned company founded in 1975 and headquartered at 19400 N Highway 99 in Acampo. FMCSA data as of February 2026 shows JSG operating with 11 power units and 7 drivers, with 131,202 miles reported for 2024 and an active USDOT status. The company holds a Satisfactory safety rating — its most recent review was in March 2022.
JSG specializes in flatbed, curtain van, and dry van freight, hauling general freight, building materials, machinery, grain, beverages, and construction materials throughout Northern California. The company has been recognized repeatedly by the California Trucking Association for its safety record, winning the prestigious Board of Directors Grand Trophy — one of only two California trucking companies out of more than 2,700 CTA members to earn that distinction. Rachel Crusenberry of JSG currently chairs the CTA's San Joaquin Unit.
Notably, JSG reported zero crashes and zero out-of-service violations in the 24 months prior to February 2026 — a remarkable safety record.
Other Established Lodi Carriers
| Company | Est. | Specialization |
|---|---|---|
| Teresi Trucking | 1959 | Overnight flatbed truckload throughout California; interstate across 48 states |
| T & T Trucking | 1956 | Bulk goods transportation including silica sand and specialty materials |
| Tiger Lines | — | Truckload, intermodal, agricultural services; bulk wine and raw produce hauling |
The Owner-Operator Landscape
The majority of Lodi's FMCSA-registered carriers are single-truck, single-driver owner-operators — exactly the segment most vulnerable to the current freight recession. Companies like Russell Transport, Eli's Trucking, Hernandez Trucking, Familia Fonseca Transport, David Cabral Trucking, and dozens more operate with one power unit each.
Nationally, 85–90% of new owner-operator businesses fail within the first two years, and the current environment has only made survival harder. These operators face:
- Spot rates essentially flat since mid-2023, often below the cost of operation
- California's AB5 law threatening the independent contractor model they depend on
- Rising insurance costs (premiums up 47% from 2010 to 2020, continuing to climb)
- Emissions compliance capital requirements under CARB's Advanced Clean Fleet regulations
- Tightening credit as banks pull back from transportation equipment lending
5. Outlook: What's Ahead for 2026
National Market
Industry analysts characterize 2026 as a year of "moderate growth" — not boom times, but more stability than the preceding turbulence. Key factors to watch:
- Capacity rebalancing: Carrier exits should eventually tighten capacity enough to push rates higher, but the timeline remains uncertain. Some models project truck utilization could reach 97–98% by late 2026 or early 2027.
- Rate recovery: Contract rates expected to edge up slightly; spot rate recovery depends on demand catalysts that remain elusive.
- Diesel stability: EIA projects diesel averaging $3.47/gallon in 2026, down from $3.66 in 2025.
- One more wave? Industry credit analysts warn that 2026 could bring one final wave of carrier failures before the market fully rebalances, as the weakest remaining carriers exhaust their reserves.
San Joaquin County & Lodi
The county's logistics sector is well-positioned for continued growth. The national shift from long-haul trucking toward regional distribution and last-mile delivery plays directly to San Joaquin County's strengths. Key developments:
- Continued Amazon expansion at Stockton Metropolitan Airport and fulfillment operations
- Airpark 599 development bringing new logistics tenants to the county
- Port of Stockton investments supporting multimodal freight movement
- Produce season 2026 could offer better-than-usual revenue opportunities for regional carriers as capacity has tightened amid enforcement actions
For Lodi's small carriers, survival will depend on maintaining contract freight relationships, controlling costs, and potentially transitioning from long-haul spot market dependence toward the regional and agricultural hauling that the area's economy supports. Established companies like JSG Trucking, Teresi, and Tiger Lines — with diversified services and decades of local relationships — appear well-positioned. Single-truck operators face a more uncertain road.
Data Sources & References
- FMCSA SAFER System — Carrier registrations, operating authorities, safety records
- FMCSA Open Data Program — Company Census File, SMS data
- American Trucking Associations (ATA) — American Trucking Trends 2025
- American Transportation Research Institute (ATRI) — 2025 Operational Costs of Trucking
- Bureau of Labor Statistics (BLS) — Motor-freight employment data series
- FTR Transportation Intelligence — Capacity and authority analysis
- San Joaquin Council of Governments — Warehousing & logistics data
- San Joaquin County Economic Development — Industry and employer data
- California Trucking Association – San Joaquin Unit
- JSG Trucking Co. — Company information
- FreightWaves, Trucking Dive, TheTrucker.com — Industry reporting (2025–2026)
- Lodi411 — San Joaquin County Employment & Jobs (2024–2025)