EasyMoney
Veteran Member
Mostly waiting on the Iran situation to play out. Venezuela will take a while to get up and going. I'm sure midterms has a lot to do with it also. Iran is on everyone's lips right now.
TRANS 16 American trucking companies file for bankruptcy from rising diesel costs
- Thread starter Cardinal
- Start date
I suspect this has more to do with hiring foreigners that can't speak English and shouldn't be driving on our highways than it really is about fuel costs. Liability might be another issue after all those deadly accidents due to foreign drivers.
KFhunter
FAFO
Europe releasing massive stores to ease short term fuel prices
Iran is possibly (hopefully) almost resolved
Venezuela coming online with huge reserves and no longer supplying Cuba, China and other black markets Iran loved so much.
Iran no longer supplying black markets
Russia lost its markets, put on export controls so will have difficult economy for foreseeable future
Global energy is about to be fixed and the ME with it.
But OMG!! weak sauce MAGA had to be inconvenienced with high fuel prices for a while omg omg omg!! Trump bad!!
This. And many more are always waiting in the doldrums that a feather could push over the cliff. Bankruptcy isn't necessarily the end for a business. Just a way to reorganize, get back into the game, still functioning intact and hopefully viable again.
And as for getting by, I'm sure there is a major move on with both big and small companies to economize and make their runs more efficient. Probably going to mean some slowed down, consolidated delivery schedules.
A tiny example I noticed was when talking to the small, local family-owned septic tank servicing company last week. The fellow on the phone taking appointments was rattling off to himself and me, looking over their trucks' scheduled routes and trying to combine areas of service - I'm sure to save fuel. I'm two weeks out and the truck will be combining several customers in the area. Fine by me. My brother graduated H.S. with the guy who owns the business.
King Samson
I'm Here
Exactly!!
Many of those 16 filed Chapter 11, reorganization, so their business continues, as it was.
Maybe. Chapter 11 can end up as a Chapter 7 if they can't work things out with creditors.
Knoxville's Joker
Has No Life - Lives on TB
And chapter 7 is end of the line. Nothing survives.
Ravekid
Veteran Member
Our entire living style and economy is pretty messed up anyway. Humans are a virus to the world, because instead of maximizing resources, we live in a manner that supports significant waste of resources. This is mostly so that people can make some money while a very tiny number of humans make out like bandits.
I just got back from my yearly smoky mountain hiking trip. I base in Gatlinburg, TN. The entire area is excessive consumerism. The amount of utter useless junk, from tourist clothing to trinkets made in China, just blows my mind. The amount of energy and resources used to provide this junk is astounding.
Then we have our living situation. Most major cities in the US have has significant suburban growth. The problem is the country built all these high rises in downtown urban cores. That’s where a lot of jobs are located, so now people have to burn 2-4x more fuel as their elders did just to get to work.
Urban cities never wanted to try and mimic the suburban life. They have blocks of vacant run down, aged homes. They are hoping that people will buy those parcels and redevelop them. Yes, in specific neighborhoods this happens. The tear down gets rebuilt with a $400K to $1M home. The problem is that only those wanting the high dense urban living are willing to pay that. If cities would bulldoze vacant blocks, consolidate some parcels so larger suburban style ranch and two story homes could be built, they might actually draw people with money back into the city.
High oil and gas prices are going to cause economic issues. That is going to push more middle aged folks into voting for DSA democrats. The youth already went far left due to current economic conditions. The middle aged cohorts will follow as everyday costs continue to rise.
I just got back from my yearly smoky mountain hiking trip. I base in Gatlinburg, TN. The entire area is excessive consumerism. The amount of utter useless junk, from tourist clothing to trinkets made in China, just blows my mind. The amount of energy and resources used to provide this junk is astounding.
Then we have our living situation. Most major cities in the US have has significant suburban growth. The problem is the country built all these high rises in downtown urban cores. That’s where a lot of jobs are located, so now people have to burn 2-4x more fuel as their elders did just to get to work.
Urban cities never wanted to try and mimic the suburban life. They have blocks of vacant run down, aged homes. They are hoping that people will buy those parcels and redevelop them. Yes, in specific neighborhoods this happens. The tear down gets rebuilt with a $400K to $1M home. The problem is that only those wanting the high dense urban living are willing to pay that. If cities would bulldoze vacant blocks, consolidate some parcels so larger suburban style ranch and two story homes could be built, they might actually draw people with money back into the city.
High oil and gas prices are going to cause economic issues. That is going to push more middle aged folks into voting for DSA democrats. The youth already went far left due to current economic conditions. The middle aged cohorts will follow as everyday costs continue to rise.
energy_wave
TB Fanatic
I used Google AI to find that there are over 580,000 carriers in the US with most being small, 10 trucks or less. The 16 filing for BK, half are chapter 11, the other are chapter 7.
Core Pressures Driving Bankruptcies
Carriers across the country are buckling under a combination of operational cost spikes:
Hardest-Hit States
The vast majority of recent liquidations and restructurings are concentrated in four dominant freight corridors:
Texas: As a massive border-trade and oil-field transport hub, Texas has suffered heavily from the recent surge in operating costs. The state recently declared a statewide disaster over soaring diesel prices to help address the severe strain on its distribution network. High-profile casualties include Xoco Transport (Hidalgo), T Yorkman Trucking (Midland), and Blue Star Transports (Garland).
Illinois: The Chicago metropolitan area serves as the primary rail-to-truck intermodal bottleneck for the Midwest, leaving regional carriers highly exposed to falling spot rates. Recent bankruptcies include mid-sized long-haul carriers like Globemaster Incorporated (Bolingbrook), NV Freight (Chicago), and Mill Creek Logistics.
California: Tight margins are being crushed by California's stringent regulatory compliance costs, environmental mandates, and expensive fuel. Recent liquidations span from Southern California to the Central Valley, including A&B Transportation (Lake Elsinore), Rothchild Transportation (South Gate), and the total closure of long-standing fleets like TGS Transportation (Fresno).
Florida: Serving as a major final-mile consumption market, Florida carriers have faced steep operational drops as consumer demand softens. Notable recent filings include Truckload LLC / Expedite Express (Ave Maria) and Star One Transport
Core Pressures Driving Bankruptcies
Carriers across the country are buckling under a combination of operational cost spikes:
- Surging Fuel Costs: National diesel prices peaked near historic highs around $6.53 a gallon, crushing profit margins for long-haul routes.
- Rising Maintenance and Insurance: Operating costs per mile climbed significantly, driven by expensive equipment maintenance and steep insurance rates.
- Weak Freight Rates: Diminished spot market demand and low shipping rates make it difficult for smaller operators to pass rising expenses on to customers.
Hardest-Hit States
The vast majority of recent liquidations and restructurings are concentrated in four dominant freight corridors:
Texas: As a massive border-trade and oil-field transport hub, Texas has suffered heavily from the recent surge in operating costs. The state recently declared a statewide disaster over soaring diesel prices to help address the severe strain on its distribution network. High-profile casualties include Xoco Transport (Hidalgo), T Yorkman Trucking (Midland), and Blue Star Transports (Garland).
Illinois: The Chicago metropolitan area serves as the primary rail-to-truck intermodal bottleneck for the Midwest, leaving regional carriers highly exposed to falling spot rates. Recent bankruptcies include mid-sized long-haul carriers like Globemaster Incorporated (Bolingbrook), NV Freight (Chicago), and Mill Creek Logistics.
California: Tight margins are being crushed by California's stringent regulatory compliance costs, environmental mandates, and expensive fuel. Recent liquidations span from Southern California to the Central Valley, including A&B Transportation (Lake Elsinore), Rothchild Transportation (South Gate), and the total closure of long-standing fleets like TGS Transportation (Fresno).
Florida: Serving as a major final-mile consumption market, Florida carriers have faced steep operational drops as consumer demand softens. Notable recent filings include Truckload LLC / Expedite Express (Ave Maria) and Star One Transport