Photo by Frederic J. BROWN / AFP via Getty Images Statistically speaking, you probably don’t drive a diesel. Oil burners represent a tiny chunk of light-duty vehicle sales, even when you factor in heavy-duty pickups and the like. But in the freight world, if you’re hauling heavy loads, chances are you’re fueling up with diesel—or maybe you were, if you drove for one of the 16 trucking companies that went bankrupt last quarter. According to multiple sources, the rising cost of diesel fuel was the straw the broke the camel’s back for 16 freight operators that filed for either Chapter 7 or Chapter 11 bankruptcy protection in late August and early September. Some were small, single-operator outfits. Others were larger, operating dozens of vehicles. Four of those operators were based in Texas, where Governor Abbott just proclaimed a statewide disaster in order to ease restrictions on the use of untaxed diesel fuel on public highways. The move was largely intended to provide relief for agricultural transportation, as most untaxed (dyed) diesel is produced for farm use. But the issue is much bigger than just agricultural trucking. High fuel prices are contributing to inflation in other sectors too. One outfit that filed for Chap. 11 protection in September was a Florida-based Amazon delivery contractor. “In the trucking business, gas prices eat into profit margins, and intense competition makes it hard for smaller players to pass on those added costs to customers,” wrote Daniel Kline, co-Editor-in-Chef of TheStreet.com. “Diesel is the latest pressure hitting carriers that were already weakened by years of poor freight economics and rising operating costs.” With residents of northern states already firing up their furnaces, American diesel fuel prices are also being pressured by the energy sector. With winter just weeks away, it’s unlikely that we’ll see any significant price relief before the holidays, especially if the situation in the Middle East stretches into 2027.
+58 others
