Trucking Industry Buckles Under Diesel Costs as Bankruptcies Mount

At least eight trucking and freight companies filed for Chapter 11 bankruptcy protection in September, as surging diesel prices and soaring insurance costs squeeze an industry responsible for moving nearly every product Americans buy.Marcus Overcast, owner of Florida-based Truckload LLC, said both diesel and insurance costs drove his company into bankruptcy, though insurance posed the bigger burden, Fox News reported. His company filed September 9 in the U.S. Bankruptcy Court for the Middle District of Florida, listing assets between $100,001 and $500,000 against liabilities under $50,000.Truckload LLC wasn’t alone. Globemaster Incorporated filed September 15 in Illinois, reporting $1.1 million in assets against $3.26 million in liabilities. CLJ Transporting Inc. filed the same day in Florida, with roughly $483,205 in assets versus $823,161 in liabilities. Louisiana’s Pacer Transport Inc. filed September 4, estimating under $50,000 in assets but between $1 million and $10 million in liabilities. Texas-based Jett Transport & Materials, LLC and Xoco Transport LLC, along with Kansas-filed Mill Creek Logistics–Illinois Inc. and Arizona’s RP Hay Hauling, LLC, rounded out the month’s filings — each citing liabilities that outpaced or closely matched their assets.The financial pressure extends far beyond the companies themselves. Automotive expert Lauren Fix told Fox that rising diesel costs ripple through nearly every supply chain in the country. “When gas prices go up or diesel prices go up, everything that goes from point A to point B is affected,” Ms. Fix said.From farm equipment and port shipments to groceries and home deliveries, higher transportation costs eventually land on consumers’ receipts. “Everything has to get somewhere somehow and so everything gets more expensive,” Ms. Fix added.Diesel prices have climbed sharply in recent months, hitting a nationwide average on Saturday of $6.28 a gallon, according to AAA. A year ago a gallon cost $3.67.President Trump has moved to ease the pressure, at least for a short spell. This week, he temporarily allowed red-dyed diesel — normally reserved for off-road use — to be used on highways, a change Ms. Fix said could save drivers 50 cents to $1 per gallon. The White House also announced an agreement with Europe to release 100 million barrels of refined diesel and crude oil from strategic reserves over the next four months.Trump went further Friday, announcing a diesel deal with Russian President Vladimir Putin.“I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace,” Trump wrote on Truth Social. “Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” he added.

Trucking Industry Buckles Under Diesel Costs as Bankruptcies Mount

Trucking Industry Buckles Under Diesel Costs as Bankruptcies Mount

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