Record Diesel Prices Push 16 Trucking Companies Into Bankruptcy in 30 Days
High Diesel Prices Bankrupted 16 Trucking Companies in Just 30 Days
In late August and early September, 16 freight operators filed for Chapter 7 or Chapter 11 bankruptcy as diesel costs hit a record $6.27 a gallon. The wave included single-truck outfits and larger fleets, plus a Florida-based Amazon delivery contractor. Texas declared a statewide disaster to ease untaxed diesel rules for agriculture, but the pain is spreading through the broader economy.
In the trucking business, gas prices eat into profit margins, and intense competition makes it hard for smaller players to pass on those added costs to customers. Diesel is the latest pressure hitting carriers that were already weakened by years of poor freight economics and rising operating costs.