Automotive expert Lauren Fix explains how rising fuel costs can impact transportation, businesses and consumers.
A series of trucking and freight companies filed for Chapter 11 bankruptcy in September.
At least eight transportation-related companies filed for Chapter 11 protection during the month, according to bankruptcy documents reviewed by FOX Business.
Globemaster Incorporated filed Sept. 15 in the U.S. Bankruptcy Court for the Northern District of Illinois under Subchapter V, a reorganization process available to eligible small businesses. The trucking company reported assets of approximately $1.1 million and liabilities of $3.26 million.
CLJ Transporting Inc., a trucking freight company, also filed a Subchapter V petition Sept. 15 in the 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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A series of trucking and freight companies filed for Chapter 11 bankruptcy in September. (Smith/Gado/Getty Images Collection, file)
Pacer Transport Inc. filed suit Sept. 4 in the U.S. Bankruptcy Court for the Western District of Louisiana, estimating its assets at less than $50,000 and its liabilities at between $1 million and $10 million.
Texas-based Jett Transport & Materials LLC filed Sept. 14 in the U.S. Bankruptcy Court for the Western District of Texas. The company estimated its assets to be between $100,001 and $500,000 and its liabilities to be between $500,001 and $1 million.
Mill Creek Logistics – Illinois Inc. filed a petition in the U.S. Bankruptcy Court for the District of Kansas the same day. It listed about $885,500 in assets, including $808,000 in trucks and equipment, and about $1.83 million in liabilities.
Arizona-based RP Hay Hauling LLC filed Sept. 10 in the 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 the U.S. Bankruptcy Court for the Southern District of Texas, estimating assets and liabilities between $1 million and $10 million.
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The filings do not identify a common cause behind the bankruptcies, but they come as the trucking industry faces higher fuel costs. (Justin Sullivan/Getty Images)
Truckload LLC filed Sept. 9 in the U.S. Bankruptcy Court for the Middle District of Florida. The company estimated assets at between $100,001 and $500,000 and liabilities at less than $50,000.
These filings come as the trucking industry faces increasing 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 filing for bankruptcy, with insurance representing the biggest strain.
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 ease higher diesel costs for truckers, signing an executive order temporarily authorizing the use of red-tinted diesel, normally reserved for off-road use, on highways.
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Automotive expert Lauren Fix told FOX Business that rising diesel prices and fuel surcharges can have far-reaching effects on the overall economy. (Mr. Scott Brauer/Bloomberg via Getty Images, file)
The administration cited limited global diesel reserves and limited refining capacity as reasons for the decision, pointing to the war between Russia and Ukraine and blaming refinery closures in Democratic-led states on green energy policies.
Automotive expert Lauren Fix told FOX Business that allowing red-tinted 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 a deal with Europe to release 100 million barrels of refined diesel and crude oil from strategic reserves over the next four months.
Fix said rising diesel prices could impact the economy as a whole.
“When gas prices go up or diesel prices go up, everything from point A to point B is affected,” according to Fix.
Trucks parked at a truck stop in Missouri. (iStock)
She highlighted agricultural equipment and goods transported from ports to warehouses or from farms to markets, as well as package and food deliveries.
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“Everything has to get somewhere one way or another, and so everything becomes more expensive,” Fix said.
FOX Business has 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.
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