Nortia Logistics has filed for Chapter 11 bankruptcy after Union Pacific sued the carrier over a $3.2 million freight debt and missed repayment commitments. This is reported by the railway transport news portal Railway Supply.

Nortia Logistics Files for Bankruptcy After Lawsuit
Photo: Aaron Seltzer via Getty Images

The Chicagoland-based firm reported nearly $5.8 million in liabilities, while holding assets worth approximately $1.4 million. Court documents confirmed the filing occurred on June 9 in Illinois.

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Nortia Logistics missed several payments under a $3.6 million promissory note, which covered services from December 6, 2023, to May 6, 2024. By January, the unpaid balance had reached $3.2 million.

In addition to freight debt, the company owes over $1.3 million from terminated lease agreements and other unsecured obligations. The bankruptcy court listed leased assets, including warehouse space and 26 Penske trucks.

Nortia Logistics Revenue Fell Before Bankruptcy

Nortia generated $40 million in revenue during 2023. However, earnings dropped to $29.5 million in 2024 and totaled just $8.3 million through June 9, according to court records.

The firm operated 56 power units and employed 45 drivers by February 20. Equipment included Volvo trucks, and the company leased office and warehouse space with 36 months remaining.

Nortia Logistics Joins Growing List of Failed Carriers

Industry experts have long predicted a correction in trucking capacity after pandemic-driven expansion. Many mid-sized carriers now struggle with declining demand and rising costs.

Nortia Logistics joins Balkan Express, AZA Transportation, and Angie’s Transportation in filing for bankruptcy this year, highlighting sector-wide instability.

The court proceedings may decide whether the company restructures or dissolves entirely. Creditors, including Union Pacific, await further decisions on asset distribution and potential repayments.

Source: www.truckingdive.com

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