Small Trucking Bankruptcies Mount as Big Carriers Bet on Recovery

Small trucking firms are going out of business at a pace not seen in decades. The biggest carriers say those exits are laying the foundation for a long-awaited upturn.

At least 221 trucking companies have filed for bankruptcy so far this year, according to data compiled by Bloomberg. Owners describe being squeezed by record diesel prices, climbing insurance premiums and tighter credit. In a survey of small carriers by Truckstop and Bloomberg Intelligence, about two-thirds said revenue was flat or lower than a year earlier. Almost 40% said they expected to leave the industry within six months or were unsure whether they would stay.

“It’s much easier for the large J.B. Hunt to absorb higher fuel prices,” said Christopher Ward, a bankruptcy lawyer at Lowenstein Sandler. Chip Lane of Lane Law Firm described a “triple whammy” of fuel prices, interest rates and credit terms.

Larger fleets are reaping the benefits. Werner Enterprises Inc. said this week that third-quarter revenue rose 23% to $950.5 million. It swung to net income of 6.6 million dollars, or 11 cents a share, from a loss a year earlier. Revenue in its truckload unit climbed 37%.

Chief Executive Officer Derek Leathers said the industry remains “in the early innings of capacity reductions as a result of enforcement efforts.” He pointed to the federal crackdown on noncompliant drivers and carriers, and said closer coordination between agencies would “further accelerate capacity attrition.”

Leathers added that rising insurance, litigation and fuel costs are also making it harder for new operators to enter the market. “This structural floor creates a stronger, more sustainable market backdrop,” he said, pointing to firmer rates and less volatility ahead. Werner expects its peak-season revenue to outperform the last couple of years.