U.S. Trucking Bankruptcies Jump 38% as Diesel Tops $7 After Iran War
Updated
Updated · The New York Times · Nov 3
U.S. Trucking Bankruptcies Jump 38% as Diesel Tops $7 After Iran War
3 articles · Updated · The New York Times · Nov 3
Summary
At least 40 U.S. trucking companies filed for bankruptcy in September, a 38% increase from a year earlier, as diesel costs surged after the Iran war.
California diesel climbed from well under $4 a gallon to more than $6 and even $7, while truckers were paying about 70% more per gallon than a year ago.
Small operators were hit hardest because freight rates did not keep pace with fuel costs, leaving owners to absorb thousands of dollars in extra monthly expenses and high-interest debt.
Luis Escalante, 47, shut down his Southern California trucking business after rising fuel bills, costly truck repairs and tougher competition made bankruptcy his last option.
The diesel shock is also squeezing farmers and other fuel-heavy industries, underscoring how the Iran war is rippling through the broader U.S. economy.
With global conflicts choking diesel supplies, could the bankruptcy wave among independent truckers trigger a permanent restructuring of the American supply chain?
As small trucking firms collapse under record diesel costs, how will the massive loss of carriers impact your everyday grocery prices?
If most US freight carriers are small businesses, what happens to the national economy when they can no longer afford to buy fuel?