A string of trucking and freight companies filed for Chapter 11 bankruptcy protection in September.
At least eight transportation-related companies sought Chapter 11 protection during the month, according to bankruptcy documents reviewed by FOX Business.
Globemaster Incorporated filed Sept. 15 in U.S. Bankruptcy Court for the Northern District of Illinois under Subchapter V, a reorganization process available to qualifying small businesses. The trucking company reported approximately $1.1 million in assets and $3.26 million in liabilities.
CLJ Transporting Inc., a freight trucking company, also filed Sept. 15 under Subchapter V in U.S. Bankruptcy Court for the Middle District of Florida. A July balance sheet included with the filing showed approximately $483,205 in assets and $823,161 in liabilities.
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Pacer Transport Inc. filed Sept. 4 in U.S. Bankruptcy Court for the Western District of Louisiana, estimating less than $50,000 in assets and between $1 million and $10 million in liabilities.
Texas-based Jett Transport & Materials LLC filed Sept. 14 in U.S. Bankruptcy Court for the Western District of Texas. The company estimated assets between $100,001 and $500,000 and liabilities between $500,001 and $1 million.
Mill Creek Logistics–Illinois Inc. filed the same day in U.S. Bankruptcy Court for the District of Kansas. It listed approximately $885,500 in assets, including $808,000 in trucks and equipment, and roughly $1.83 million in liabilities.
Arizona-based RP Hay Hauling LLC filed Sept. 10 in U.S. Bankruptcy Court for the District of Arizona, reporting approximately $1.32 million in assets and $1.53 million in liabilities.
Xoco Transport LLC filed Sept. 16 in U.S. Bankruptcy Court for the Southern District of Texas, estimating both assets and liabilities between $1 million and $10 million.
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Truckload LLC filed Sept. 9 in U.S. Bankruptcy Court for the Middle District of Florida. The company estimated assets between $100,001 and $500,000 and liabilities of less than $50,000.
The filings come as the trucking industry faces mounting costs, including higher fuel and insurance expenses.
Truckload LLC owner Marcus Overcast told FOX Business in a phone call that diesel and insurance costs contributed to his company’s bankruptcy filing, with insurance representing the biggest pressure.
Diesel was selling for about $6.26 a gallon Thursday at a Flying J truck stop in Orange, Texas, according to The Wall Street Journal.
President Donald Trump moved this week to provide truckers with relief from higher diesel costs, signing an executive order temporarily allowing red-dyed diesel normally reserved for off-road use to be used on highways.
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The administration cited tight global diesel supplies and limited refining capacity as reasons for the move, pointing to the Russia-Ukraine war and blaming refinery closures in Democrat-led states on green energy policies.
Automotive expert Lauren Fix told FOX Business that allowing red-dyed diesel to be used on highways could make a “huge difference,” estimating a potential savings of 50 cents to $1 per gallon.
The White House also said Trump reached an agreement with Europe to release 100 million barrels of refined diesel and crude oil from strategic reserves over the next four months.
Fix said higher diesel prices could ripple through the broader economy.
“When gas prices go up or diesel prices go up, everything that goes from point A to point B is affected,” according to Fix.
She pointed to agricultural equipment and goods moving from ports to warehouses or farms to markets, as well as package and food deliveries.
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“Everything has to get somewhere somehow, and so everything gets more expensive,” Fix said.
FOX Business reached out to Globemaster Incorporated, CLJ Transporting, Pacer Transport, Jett Transport & Materials, Mill Creek Logistics–Illinois, RP Hay Hauling and Xoco Transport for comment.
FOX Business’ Stepheny Price contributed to this report.
