Montgomery Transport closes without notice
Montgomery Transport, a Birmingham, Alabama flatbed carrier, shut down on 9 October 2025 after a planned sale to an affiliate of PS Logistics fell apart. Transport Topics reported that about 650 employees lost their jobs; FreightWaves, citing other reports, put the figure closer to 1,000 including roughly 600 drivers. Reports at the time said the company would liquidate under Chapter 7 after a Chapter 11 sale could not be finalized. FMCSA records cited by Transport Topics showed Montgomery Transport and two affiliates running more than 600 tractors between them.
Earlier in 2025, smaller carriers were already restructuring. Dolche Truckload, an Illinois carrier with 57 trucks and 60 drivers in FMCSA data, filed for Chapter 11 under the small-business Subchapter V provision on 15 June 2025 after defaulting on equipment loans.
Zuum Transportation files for Chapter 11
Zuum Transportation, a venture-backed freight technology company based in Irvine, California, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California on 6 November 2025. Its petition listed assets and liabilities each in the $10 million to $50 million range.
What carrier and broker failures mean if you factor
When a broker fails, the question is who carries the unpaid invoices. Under a recourse agreement you do: the factor charges the invoice back to you, usually by deducting it from your reserve or future advances. Under a non-recourse agreement the factor may absorb the loss, but only for the specific events the contract covers, typically the broker's documented insolvency. Read the definition before you rely on it. Our guide to recourse vs non-recourse factoring explains the usual exclusions.
Three practical steps:
- Check every new broker's credit through your factor before you haul, and re-check brokers you have not used for a while.
- Watch for slow pay from a broker who used to pay on time. It is often the first sign of trouble.
- Keep your own reserve. A factor that is itself short of cash can tighten approvals or slow funding with little warning, so know your exit terms. See how to switch factoring companies.
Regulatory changes carriers were still adjusting to
English proficiency
Since 25 June 2025, drivers who cannot meet the English language proficiency requirement in 49 CFR 391.11(b)(2) can be placed out of service at roadside inspections, following an April 2025 executive order and a change to the Commercial Vehicle Safety Alliance's out-of-service criteria. A driver placed out of service strands the load and delays the paperwork you need to get paid.
MC numbers
Despite widespread reports that MC numbers would be eliminated by October 2025, FMCSA had deferred that change from the first phase of its new registration system. Keep both your MC and USDOT numbers on invoices and broker paperwork until the agency confirms the switch.
Speed limiters withdrawn
FMCSA and NHTSA formally withdrew the 2016 proposal to require speed limiting devices on vehicles over 26,000 pounds, and FMCSA's own 2022 follow-up notice, in a Federal Register notice published on 24 July 2025. The agencies cited data gaps and uncertainty about costs and benefits.
Automatic emergency braking is still a proposal
Some trade coverage described automatic emergency braking on new heavy trucks as already required from 2027. It is not. NHTSA and FMCSA proposed an AEB standard for vehicles over 10,000 pounds in July 2023, and as of this update no final rule has been published. Watch for one before you price new equipment.
Drug and Alcohol Clearinghouse
Under FMCSA's 2021 Clearinghouse-II rule, states had to comply by 18 November 2024 with the requirement to remove commercial driving privileges from drivers in "prohibited" status until they complete the return-to-duty process. A driver who lands in prohibited status is a lost truck until that process is complete, so run your Clearinghouse queries on time.
Diesel
The U.S. Energy Information Administration's weekly survey put the national average retail diesel price at $3.837 a gallon in the week of 10 November 2025, up from $3.620 in the week of 20 October. Fuel advances from a factor can cover that gap, but they usually carry their own fees. Our factoring hidden fees guide covers what to ask.
The size of the factoring market
Grand View Research estimates the U.S. factoring services market at $171.98 billion in 2024 and projects growth at a compound annual rate of 9.4% from 2025 to 2030. It describes invoice factoring as a primary source of funding for the transportation and logistics industry. These are a market research firm's estimates, not official statistics, and they cover all industries, not just freight.
Choosing or reviewing a factor this winter
With carrier and broker failures in the news, the useful questions are about the factor's terms and stability rather than the headline rate:
- What exactly does your non-recourse cover, and what does it exclude?
- What are all the fees beyond the discount rate? See our freight factoring cost guide.
- Do you have to factor every invoice, and are there monthly minimums?
- How much notice is needed to leave, and how is the buyout handled?
You can compare providers on the freight and trucking factoring page or request quotes.