A montage of commercial trucks from various US carriers recently entering Chapter 11 and Chapter 7 bankruptcy proceedings.
A new wave of bankruptcies has swept across the United States transportation sector, with at least 16 trucking, delivery, and logistics companies entering bankruptcy proceedings between late August and September 21, according to federal court filings and carrier records.
The filings span a wide range of carriers from independent owner operators and small fleets to midsize operations running dozens of trucks. The financial strain highlights ongoing pressures within the freight environment, driven by elevated diesel fuel prices, labor expenses, insurance, maintenance, and other rising operating costs.
Of the recent cases, carriers have split between seeking restructuring or total liquidation:
Chapter 11 Reorganisation: At least eight companies filed for Chapter 11 protection, allowing them to remain in business while working alongside bankruptcy courts and creditors to restructure their debts.
Chapter 7 Liquidation: Several smaller fleets and single-truck operations entered Chapter 7 proceedings, which typically involve liquidating a debtor's assets rather than corporate reorganisation.
Several midsize carriers with substantial vehicle counts and workforces are among those seeking federal protection:
Xoco Transport: The Hidalgo, Texas-based carrier filed for Chapter 11 on September 16. Court filings indicate the company operates over 40 tractors, 65 drivers, and 70 trailers.
Globemaster Inc.: Based in Bolingbrook, Illinois, the long-haul carrier filed for Chapter 11 protection on September 15 in the U.S. Bankruptcy Court for the Northern District of Illinois. Globemaster reported assets between $500,000 and $1 million, liabilities ranging from $1 million to $10 million, 51 power units, and approximately 3.3 million annual miles.
CLJ Transporting Inc.: An Auburndale, Florida-based Amazon Delivery Service Partner, filed for Chapter 11 on September 15. The carrier reported supporting last-mile delivery operations with 18 trucks and 30 drivers.
Jett Transport & Materials LLC: A Somerset, Texas-based construction material hauler, filed for Chapter 11 on September 14, operating roughly 14 trucks and 14 trailers with 10 drivers.
Mill Creek Logistics-Illinois Inc.: Based in Lenexa, Kansas, the courier and express delivery company filed for Chapter 11 on September 14, citing between 24 power units and 28 drivers.
RP Hay Hauling LLC: A Parker, Arizona-based agricultural transporter, filed for Chapter 11 on September 10, reporting assets and liabilities in the $1 million to $10 million range.
Truckload LLC (Expedite Express): The Ave Maria, Florida-based carrier filed for Chapter 11 on September 9. Historical records indicate the company operated 114 power units, though the filing coincided with a scheduled involuntary suspension of its motor carrier operating authority.
Pacer Transport Inc.: Based in Arnaudville, Louisiana, Pacer filed for Chapter 11 on September 4, reporting general freight, flatbed, specialised hauling, and brokerage services with liabilities between $1 million and $10 million.
A cluster of smaller, independent carriers also entered Chapter 7 bankruptcy proceedings in recent weeks, including:
The surge in diesel prices which reached a record average of $6.53 a gallon following geopolitical conflicts and shrinking truck fleet capacity extend far beyond the logistics sector, directly affecting consumer pocketbooks.
Higher Food Costs: Soaring fuel costs hit every step of the supply chain, from harvesting on farms to freight delivery carrying food to grocery stores. Consumer food prices rose 2.7% year-over-year in August.
Increased Freight and Delivery Fees: Higher diesel expenses mean increased transportation costs across a broad range of everyday products. Many businesses have already begun passing these expenses on to shoppers through added fees on mail and online orders.
Holiday Supply Chain and Inventory Risks: With fewer operating carriers and reduced freight capacity heading into the peak holiday season, elevated shipping rates, delayed package deliveries, and store inventory shortages become significantly higher risks for consumers.
Industry observers note that independent operators and small-to-midsize fleets face a challenging double-edged sword: volatile freight rates on one side and sticky, elevated fixed overhead on the other.
When shipping volumes soften during seasonal lulls, fleets running with tight cash reserves often find it impossible to absorb sudden price surges in fuel, equipment parts, or insurance policy renewals.