16 U.S. Trucking Companies File for Bankruptcy in a Month
FreightWaves reported that from late August to September 21, at least 16 trucking, delivery, and transportation companies entered bankruptcy proceedings after checking federal court and carrier records. Chapter 11 reorganizations include Globemaster, Xoco Transport, Jett Transport & Materials, CLJ Transporting, Mill Creek Logistics-Illinois, RP Hay Hauling, Truckload LLC, and Pacer Transport. Several smaller carriers filed for Chapter 7 liquidation.
Xoco Transport in Edinburg, Texas, filed for Chapter 11 on September 16. Documents show over 40 tractors, about 65 drivers, and 70 trailers. Materials reviewed by Newsweek indicate a net loss of $609,000 in the first seven months before 2026, with assets of $2.2 million and liabilities of $3.3 million. Globemaster in Bolingbrook, Illinois, filed for Chapter 11 on September 15, with 51 power units, assets between $500,000 and $1 million, and liabilities between $1 million and $10 million.
Truckload LLC, operating as Expedite Express in Florida, filed for Chapter 11 on September 9, historically running 114 power units, with operating authority reported to be forcibly suspended on September 30. CLJ Transporting in Auburndale has 18 trucks and 30 drivers. Mill Creek Logistics-Illinois in Lenexa, Kansas, has 24 power units and 28 drivers. The single-truck company C. Pride Transport filed for Chapter 7 on September 18.
Diesel prices are impacting costs during this period. AAA reported a national average of $6.39 per gallon on Thursday, reaching a historical high of $6.53 last week, compared to $3.71 a year ago and $5.63 a month ago. The U.S. Energy Information Administration reported an average highway diesel price of $6.529 on September 21, up 24.4 cents in one week and $2.78 higher than a year ago. ZeroHedge noted prices rose from about $5.60 at the end of August to $6.53 by late September, an increase of about 17% over several weeks. The latest weekly reading remains at $6.38.
Newsweek stated that some Chapter 11 filings show high debt-to-asset ratios and existing financial difficulties, without attributing diesel prices as a direct cause. The industry perspective is that freight rates are rising in the fall, but contract rates signed months ago cannot keep pace with rapidly rising fuel prices. A truck that consumes 100 gallons daily sees an additional cost of $100 for every $1 increase in diesel prices. Carriers can only absorb the costs, raise freight rates and lose contracts, or cut personnel and equipment.
The contracts being purchased are for operational capacity, while those being sold are small fleets unable to withstand fuel prices. This is a clearing driven by cost shocks, not a disappearance of demand. Money is flowing from thin-margin owner-operators and regional fleets to larger carriers that can incorporate fuel surcharges into contracts. Beneficiaries include shippers with fuel price clauses and those acquiring bankrupt capacity, while drivers directly losing jobs in Chapter 7 liquidations are under pressure. The 16 companies are not the entire industry, but single-truck operations to fleets of 114 units are on the list.
Source: Public Information
ABAB AI Insight
The wave of truck bankruptcies is not new, following diesel prices. In 2008, when oil prices surged, small carriers failed first, while larger fleets survived on fuel surcharges. The difference in 2026 is speed. Highway diesel prices rose from about $5.60 at the end of August to $6.529 by September 21, with a further increase of 24.4 cents in one week. Contract rates are locked monthly or quarterly, while fuel prices fluctuate daily, leaving carriers to cover the difference.
Xoco's financials clearly show the burden. With a net loss of $609,000 in the first seven months, assets of $2.2 million, and liabilities of $3.3 million, the fleet still has over 40 tractors. Globemaster has 51 power units, with liabilities reported to be capped at $10 million. Expedite Express, historically operating 114 power units, faces a forced suspension of its license. These are not individual owner-operators but regional fleets with driver lists that still cannot pass on fuel prices.
This can be compared to the large bankruptcies of Celadon in 2019 and Yellow in 2023, which had debt structures and union burdens. This time, half of the 16 are restructuring while the other half are liquidating, geographically dispersed across Texas, Illinois, Florida, and Kansas. The current situation is the first stage of cost clearing. Freight rates are rising in the fall, but the increases have not yet covered the additional $2 per gallon.
Structurally, this represents a shift in pricing power. Diesel has transitioned from a variable cost for carriers to a fixed loss for shippers before they adjust contracts. Those with fuel surcharge clauses can pass on fuel costs, while those with contracts signed months ago are subsidizing shippers with their balance sheets. Chapter 7 liquidations return trucks and drivers to the market, but capacity does not disappear; it simply shifts to those who can adjust prices.