🚛 🇺🇸 ⛽️ 16 U.S. Trucking Companies File For Bankruptcy In Less Than A Month As Diesel Prices Soar

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.

“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.

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.

https://www.the-independent.com/us/money/trucking-companies-bankruptcy-freight-shipping-b3058492.html

📢 🇪🇹 🇪🇷 Ethiopia closes its embassy in Eritrea and declares 10 Eritrean diplomats in Addis Ababa persona non grata, giving them 48 hours to leave

📎 Faytuks Network

—❗️🇺🇸/🇮🇷 BREAKING: The U.S. is sending another aircraft carrier, the USS Theodore Roosevelt, to the Middle East

The carrier and its strike group left San Diego today and will arrive in the CENTCOM area of operations by mid November.

Trump has said he is considering continuing the war against Iran after the midterm elections, which take place on November 3rd.

@Middle_East_Spectator