Bankruptcy Comes For American Trucking Companies As Diesel Prices Skyrocket: ‘They’re Killing Me’
America’s trucking industry is buckling under mounting financial pressure, with at least 16 transportation companies filing for bankruptcy in less than a month as the Iran war drives diesel prices higher.
Paris Apodaca·Oct 10, 2026·7 min read
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America’s trucking industry is buckling under mounting financial pressure, with at least 16 transportation companies filing for bankruptcy in less than a month as the Iran war drives diesel prices higher.
The companies entered bankruptcy proceedings between late August and Sept. 21, spanning general freight, agricultural hauling, construction transportation and delivery services, according to FreightWaves. The filings come as disruptions to global fuel supplies have pushed American diesel prices to all-time highs, adding to expenses for carriers already struggling with narrow profit margins.
“Well, right now they’re killing me,” Marcus Overcast, owner of Truckload LLC, which operates as Expedite Express and was among the companies identified in the bankruptcy filings, told the Daily Caller News Foundation about diesel prices. “I’m glad they’ve come down a little bit.”
Diesel prices reached a record national average of $6.53 per gallon Sept. 22 before easing to $6.28 as of Friday, Oct. 9, according to AAA. Despite the decline, diesel remains roughly 71% more expensive than a year ago, when drivers paid an average of $3.68 per gallon.
Overcast pointed to the ongoing Iran war as a major contributor to rising diesel costs, arguing that ending the conflict would help relieve financial pressure on American trucking companies. He also called for expanding domestic oil production and expressed concerns about the country’s refining capacity.
“We gotta end this conflict over there in Iran,” Overcast told the DCNF. “I feel that’s really driving this up.”
Overcast also referenced President Donald Trump’s efforts to provide relief from rising fuel expenses, suggesting that additional diesel supplies could help businesses struggling with higher operating costs. However, he maintained that resolving the conflict would be necessary to address the broader pressure on fuel prices.
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American refineries are already operating near full capacity, leaving little room to ramp up fuel production as the Iran war strains global supplies.
Meanwhile, the nation’s diesel stockpiles remain below seasonal norms, leaving trucking companies vulnerable to further price increases if supplies tighten, according to the U.S. Energy Information Administration.
The economic fallout from the Iran war has extended beyond fuel prices, with attacks on tankers in the Strait of Hormuz recently driving shipping traffic to its lowest level in more than two months. The disruptions have further strained global oil supplies as President Donald Trump weighs renewed military strikes against Iran.
Although Overcast expressed support for protecting Israel, he acknowledged that the conflict was imposing a financial burden on American businesses.
“I know some of it had to be done,” Overcast said.
The financial strain has forced Overcast to take unusual steps to reduce diesel consumption, including offering drivers bonuses to travel at slower speeds. His company sets a fuel-efficiency target of 7.5 miles per gallon and rewards employees who exceed that benchmark by splitting the resulting fuel savings with them.
“So I give them half of what they save to try to save us money,” Overcast told the DCNF.
Under the arrangement, a driver who saves the company $200 in monthly fuel expenses receives a $100 bonus. Overcast explained that reducing highway speeds can improve fuel efficiency by approximately one mile per gallon, making slower driving financially beneficial for both the company and its employees.
The savings have become increasingly important as fuel prices climb. Overcast estimates that a $1-per-gallon increase in diesel costs could reduce his company’s annual bottom line by approximately $60,000 across just four trucks, with drivers typically covering between 2,500 and 3,000 miles each week.
His company also uses auxiliary power units to reduce diesel consumption when drivers need heating or air conditioning while parked. Overcast said operating costs have soared so high that parking trucks can be cheaper than making deliveries.
“If we don’t have good stuff, we won’t take a load just to take a load for revenue,” Overcast said, explaining that waiting a day or two for a better-paying shipment can be more economical than immediately putting a truck back on the road.
Among the other companies was Texas-based Xoco Transport, which filed for Chapter 11 protection Sept. 16. The company operated more than 40 tractors, employed 65 drivers and maintained approximately 70 trailers, according to bankruptcy and federal carrier records cited by FreightWaves.
Illinois-based Globemaster Incorporated sought Chapter 11 bankruptcy protection Sept. 15, disclosing debts of up to $10 million while valuing its holdings at no more than $1 million. The long-distance trucking company maintained a fleet of 51 power units and logged roughly 3.3 million miles annually, according to FreightWaves.
Another carrier facing financial trouble was CLJ Transporting, a Florida company responsible for Amazon deliveries. Despite operating 18 trucks and employing roughly 30 drivers, the contractor filed for bankruptcy Sept. 15 with reported debts of up to $1 million and assets worth no more than $500,000, according to FreightWaves.
Other businesses seeking bankruptcy protection included Texas construction hauler Jett Transport & Materials, Kansas-based Mill Creek Logistics-Illinois and Arizona agricultural carrier RP Hay Hauling, according to FreightWaves.
“The problem is the brokers. They don’t pay the rates they’re supposed to pay for the mileage. You can drive 600 miles, and the broker will try to pay you just $1 per mile. Can you imagine driving 600 miles for only $600?” a trucking industry employee granted anonymity for fear of losing his job told the DCNF.
Louisiana-based Pacer Transport disclosed less than $50,000 in assets while reporting liabilities between $1 million and $10 million, according to FreightWaves.
Xoco Transport, Globemaster, CLJ Transporting, Jett Transport & Materials, Mill Creek Logistics-Illinois, RP Hay Hauling, Pacer Transport and the other companies identified in the bankruptcy filings did not immediately respond to the Daily Caller News Foundation’s requests for comment.
The Iran war, which began Feb. 28, has disrupted energy shipments through the Strait of Hormuz and damaged regional energy infrastructure, contributing to tighter global oil and refined-fuel supplies. The disruptions have driven up fuel costs for American businesses dependent on diesel.
The national average on-highway diesel price reached $6.529 per gallon Sept. 21 before declining to $6.199 on Oct. 5, according to the U.S. Energy Information Administration.
Overcast said the financial pressure has been particularly severe for companies operating in California, where his drivers encountered diesel prices as high as $9 per gallon. The rising costs have added to insurance expenses that he said exceeded $100,000 for his four-truck fleet.
The economic consequences extend to American consumers. Trucks transported 11.27 billion tons of freight in 2024, accounting for 72.7% of domestic freight tonnage, according to the American Trucking Associations. Higher transportation expenses can eventually affect the prices of groceries and other goods moved across the country.
The construction industry is facing higher transportation costs as diesel prices increase expenses for heavy equipment and deliveries. Contractors have reported rising fuel surcharges and difficulty absorbing unexpected costs on existing projects.
President Donald Trump signed an executive order Oct. 5 aimed at lowering fuel costs by temporarily permitting tax-exempt diesel, typically used in farming and other off-road operations, to be used by vehicles traveling on public highways.
The order allows certain highway uses of the fuel through the end of the year, but truck stops and fuel distributors have hesitated to sell it amid uncertainty over whether they could ultimately be responsible for deferred federal fuel taxes.
The trucking industry’s financial challenges extend beyond fuel. Operating costs reached $2.336 per mile in 2025, increasing 3.4% from the previous year, according to the American Transportation Research Institute. Expenses excluding fuel climbed 4.2%, while operating margins for truckload and refrigerated freight carriers remained below 1%.
“We’ve got to get this ended,” Overcast said. “It’s killing us.”
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