Record Diesel Prices Drive Wave of US Trucking Bankruptcies
At least 17 American trucking companies filed for bankruptcy as diesel prices hit a record $6.53 per gallon amid conflict with Iran.
A surge in diesel prices has triggered a wave of bankruptcies across the United States trucking and transportation sector. At least 16 companies filed for bankruptcy between late August and September 21, with others following, including Chicago-based Midwest Expedited Co., which sought Chapter 11 protection on October 6. The filings include both Chapter 7 liquidations and Chapter 11 reorganizations, resulting in the loss of more than 250 jobs.
Xoco Transport and Globemaster Inc. are among the larger firms seeking restructuring. The financial crisis was precipitated by diesel prices reaching a record average of $6.53 per gallon on September 22, a 17% increase from August and a significant jump over the previous year. This price spike is linked to the conflict between the United States and Iran, which damaged Middle Eastern refining infrastructure and disrupted global energy supplies.
Industry analysts note that while fuel costs were the primary trigger, the sector was already weakened by a freight downturn from 2022 to 2025 and a post-pandemic surplus of carriers. Small-business truckers are particularly vulnerable as they lack the volume discounts and automatic fuel surcharges available to larger fleets. Experts warn that if these costs persist, they may build into the underlying rate of inflation, potentially forcing the Federal Reserve to maintain higher interest rates to stabilize the economy.
