16 American trucking companies file for bankruptcy as diesel costs soar
16 American trucking companies file for bankruptcy as diesel costs soar
J.R. DurenTue, September 29, 2026 at 6:29 PM UTC
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More than a dozenAmerican trucking companies have filed for bankruptcy in the past month, according to an industry news report.
Some16 firms, accounting for more than 250 jobs, have filed for Chapter 7 or Chapter 11 proceedings, FreightWaves reported earlier this month.
Diesel prices, the lifeblood of the trucking industry, hit a record average of $6.53 a gallon on September 22 amid the impact of President Donald Trump’s war with Iran. Diesel has increased $2.76 over the past year, according to motor club AAA.
Two of the biggest companies listed, Xoco Transport and Globemaster, are entering Chapter 11 proceedings, meaning they will remain open for business but work with bankruptcy court and creditors to make a payment plan for their debts.
Xoco and Globemaster did not specify what led to their bankruptcy filings, according to federal court documents. The Independent has contacted the companies for comment.
Diesel gas hit a record high of $6.53 in September (Reuters)
The impact of diesel prices trickles down to other parts of the business, logistics firm ASM Group said in a December 2025 analysis of the industry.
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“When fuel costs go up, the trucking companies face a sudden increase in their operational cost and are forced to increase freight rates to avoid going in loss,” the group wrote.
Increasing their shipping rates isn’t a cure-all, either. Companies typically have to lay off workers and sell equipment to stay afloat, ASM Group wrote.
That lowers their shipping capacity, reducing their revenue opportunities.
But diesel prices are just one of the financial pressures that trucking companies have to battle, according to a July analysis by consultancy Deloitte.
“Labor, insurance, maintenance, and regulatory compliance costs continue to escalate,” Deloitte wrote.
In general, hauling freight has busy and slow seasons. During those slower months, companies may not generate enough revenue to cover those cost increases, the report said.
Of the 16 trucking companies listed in FreightWaves’ reporting, eight companies are filing Chapter 11 and seven are liquidating all their assets and closing through Chapter 7 bankruptcy.
Source: “AOL Breaking”
