Diesel at $6.32 per gallon sparks wave of trucking bankruptcies across US

American trucking companies are buckling under record diesel costs, with bankruptcies mounting and warnings of a looming “domino effect” across the supply chain.

At least eight transportation companies filed for Chapter 11 protection in September, including Globemaster Inc., CLJ Transporting, Pacer Transport, Jett Transport and Materials, Mill Creek Logistics (Illinois), RP Hay Hauling, and Xoco Transport.

Truckload LLC owner Marcus Overcast cited diesel and insurance costs as key factors in the Florida filing.

The crisis is driven by diesel prices that have surged to $6.32 per gallon nationally, up more than 70% from $3.69 a year ago, amid the war in Iran. California prices have hit $8.35 per gallon, 32% above the national average.

Miami trucker Suave Dorsett reported seeing $7.40 per gallon in Ohio.

Dorsett said: “Fuel prices are going up, the rates are not going up. So it’s hurting our pockets real bad,” predicting smaller operations will “slowly fall off,” creating a chain effect that pressures larger carriers.

President Trump has temporarily allowed off-road red diesel on highways and negotiated a European agreement to release 100 million barrels of refined diesel and crude from strategic reserves. He called higher fuel prices “a small price to pay for Iran not having a nuclear weapon.”