Automotive expert Lauren Fix discusses how rising fuel costs can impact transportation, businesses and consumers. A number of transportation and freight companies filed for bankruptcy in September as rising fuel, insurance and other operating costs squeeze an industry that plays a critical role in moving goods across the U.S. At least eight transportation-related companies sought Chapter 11 protection during the month, according to bankruptcy documents reviewed by FOX Business, with one trucking company owner directly pointing to diesel and insurance costs as factors behind his filing. Truckload LLC owner Marcus Overcast told FOX Business that diesel and insurance costs contributed to the bankruptcy of his Florida business. and insurance represents the greatest pressure. TRUMP’S ENERGY CHIEF SAYS TRUCKERS COULD SEE DIESEL RELIEF IN THE DAYS AFTER EXECUTIVE ORDER A number of trucking and transportation companies filed for Chapter 11 bankruptcy protection in September. (Smith Collection/Gado/Getty Images, file) Those costs can extend far beyond the trucking industry. Automotive expert Lauren Fix told FOX Business that the pressure of rising diesel prices extends far beyond trucking companies because almost everything consumers buy must be transported at some point in the supply chain. “When gasoline or diesel prices go up, everything from point A to point B is affected,” Fix said. From farm equipment and goods moving from ports to warehouses to food and package deliveries, higher transportation costs can impact the economy and ultimately reach consumers. TRUMP’S ENERGY CHIEF SAYS TRUCKERS COULD SEE DIESEL RELIEF WITHIN DAYS AFTER EXECUTIVE ORDER The financial strain comes as diesel prices have skyrocketed, adding another expense for trucking companies already facing costly insurance and other operating pressures. President Donald Trump took action this week to provide relief, temporarily allowing red-tinted diesel, normally reserved for off-road use, to be used on roads. Automotive expert Lauren Fix told FOX Business that rising diesel prices and fuel surcharges can have far-reaching effects across the economy. (M. Scott Brauer/Bloomberg via Getty Images, File) Fix said the measure could make a “huge difference,” estimating it could save drivers between 50 cents and $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. END OF THE YEAR September bankruptcy filings span transportation and freight companies in several states, with some declaring liabilities far in excess of their assets, all as the industry has faced rising costs. Overcast’s Truckload LLC filed on Sept. 9 in the U.S. Bankruptcy Court for the Middle District of Florida. The company estimated assets between $100,001 and $500,000 and liabilities of less than $50,000. The filings do not identify a common cause behind the bankruptcies, but they come at a time when the transportation industry faces higher fuel costs. (Justin Sullivan/Getty Images) Additionally, Globemaster Incorporated filed on September 15 in Illinois under Subchapter V, reporting approximately $1.1 million in assets and $3.26 million in liabilities. CLJ Transporting Inc., which filed the same day in Florida, reported approximately $483,205 in assets and $823,161 in liabilities on a July balance sheet. Pacer Transport Inc., filed on Sept. 4 in Louisiana, estimating less than $50,000 in assets and between $1 million and $10 million in liabilities. Texas-based Jett Transport & Materials, LLC filed a filing on Sept. 14, estimating assets between $100,001 and $500,000 and liabilities between $500,001 and $1 million. Mill Creek Logistics–Illinois Inc. filed a filing on Sept. 14 in Kansas, listing approximately $885,500 in assets, including $808,000 in trucks and equipment, against approximately $1.83 million in liabilities. Arizona-based RP Hay Hauling, LLC filed on September 10, reporting approximately $1.32 million in assets and $1.53 million in liabilities. And Xoco Transport LLC filed on Sept. 16 in Texas, estimating both assets and liabilities between $1 million and $10 million. Trucks parked at a truck stop in Missouri. (iStock) “Everything has to get somewhere somehow and that’s why everything gets more expensive,” Fix said. 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. FOX Business reached out to Globemaster Inc., 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.
