In Under a Month 16 Trucking Companies File for Bankruptcy

After diesel prices spiked, 16 trucking companies have now filed for Chapter 7 and Chapter 11 Bankruptcy. This happened from August 21st to September 21st, according to what the court records show.

Marked by the rise of diesel prices, the landscape for truckers right now has become increasingly desperate. Besides the diesel prices, another issue comes from skyrocketing operating costs in other areas as well, such as tolls (up 13%), repair & maintenance (up 8.6%), tires (up 6.4%), and driver benefits (up 6.6%).

The carriers currently in bankruptcy range from 1-truck owner operators to companies with 50+ trucks.

Understanding What Happened

Some of the bigger carriers filed for Chapter 11 Bankruptcy. This includes companies like Pacer Transport, Xoco Transport, CLJ Transporting, Jett Transport & Materials, RP Hay Hauling, Mill Creek Logistics-Illinois, and Globemaster Incorporated.

Normally, Chapter 11 Bankruptcy involves a reorganizing of the corporation or partnership, making it different from Chapter 7. Many of the smaller trucking companies chose Chapter 7 Bankruptcy, which means that the assets from that business got liquidated and sold off to pay creditors.

Many of the carriers going through these bankruptcy filings were especially based in Arizona, California, Illinois, Texas, and Florida.

One thing we want to highlight here is that when you see bankruptcies in this number touching general freight, agricultural hauling, last mile delivery, specialized freight, and bigger companies that have dozens of trucks, everyone should be paying attention!

The Small Carriers Filing for Bankruptcy

When we say small carrier, we mean many of the companies with under six trucks. For example, A&B Transportation had 6 trucks. Another one, Russ Exp Co. had 5 trucks. They’re filing for Chapter 7 Bankruptcy.

There were also a couple of small carriers out of Texas that filed for bankruptcy including Bluestar Transports LLC (2 trucks).

Jackdollars Transports LLC (1 truck) that filed for bankruptcy.

Not All Companies Closed Their Doors for Business

Chapter 11 Bankruptcy was intended more to give struggling companies a way to reorganize their business. Many of the bigger trucking companies chose this route over Chapter 11. Chapter 11 usually involves a business cutting their expenses, selling off assets to creditors to pay off some debts, and trying to re-emerge as a healthy business.

What are Your Thoughts?

At Trucker Social, we’d love to hear what you think of the 16 trucking companies filing for bankruptcy. Do you think this is an ominous sign of more bankruptcies to come and more hardship for the industry as a whole? Please, let us know your thoughts.

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