Nationwide Trucking Company Files for Bankruptcy Amid Diesel Price Shock

U.S.NewsPoliticsAI PoliticsTechFact CheckSportsGlobalIran WarRussia-UkraineMiddle EastChina And AsiaLive BlogBetter PlanetAll World NewsLifestyleFamily & ParentingEntertainmentTravelPetsAutomotiveRelationshipsScienceHealthPersonal FinanceBetter WorkplacesReaders ChoiceOpinionMy TurnAll OpinionRankingsHealthCorporate ResponsibilityFinanceProductsEducationWorkAll RankingsWatchThe 1600The Royal ReportUnconventionalFrom The PaddockNewsmakersSocialFacebookInstagramYouTubeRedditTikTokTwitter/XExtraNewslettersDare to DreamEventsEssaysPodcastsVantageInsightsMagazineCEO CircleAnnouncementsLeadershipDev Pragad Another nationwide trucking company has filed for bankruptcy protection, as the wider logistics industry continues to grapple with near-record diesel prices and other economic headwinds. As of Wednesday, AAA put the nationwide average at $6.30 per gallon of diesel, down from the all-time high of $6.53 reached in September but up from $3.68 a year ago. And the surge in fuel costs has placed significant pressure on firms that are reliant on affordable fuel. Recent research has pointed to a spike in sector layoffs and trucking bankruptcies, with the supply chain-focused publication FreightWaves finding 16 firms entered bankruptcy proceedings between late August and September 21. And on Tuesday, the Chicago, Illinois-based trucking company Midwest Expedited Co. filed a petition for Chapter 11 relief with the Bankruptcy Court for the Northern District of Illinois. Newsweek has reached out to a representative of the company via email for comment. What Is Causing These Bankruptcies? As outlined on its LinkedIn page, the interstate trucking company was founded in 2014 and operates a 20,000-square-foot facility in Illinois, with 95 trucks and a dispatch team that “works 24/7.” Court documents did not state a reason for the Chapter 11 filing or whether this was in any way related to the rising costs of diesel. Filings listed assets in the range of $100,000 to $500,000 and between $1 million and $10 million worth in liabilities—later estimated at $2.3 million. The company also reported $817,000 in revenue since the beginning of 2026, compared with $4.8 million over the whole of 2025 and $7.6 million the year prior. The website TruckingDataBase says the company’s combined vehicle mileage in 2023 reached 2.3 million. Assuming current prices and that a truck gets seven miles to the gallon, this would imply an overall cost of nearly $2.1 million annually. How Diesel Is Impacting Trucking Companies The economist Willy C. Shih, a professor of management practice at Harvard Business School, previously told Newsweek it could now cost around $3,000 for a truck to haul goods cross-country, based on $6.50-per-gallon diesel and assuming it gets seven miles per gallon. "If you think that isn’t going to get passed on to consumers, think again, because nobody else along the chain can afford to eat that increase in costs," he told Newsweek. "These high diesel costs also come at harvest time, and farm machinery all rely on diesel. Farmers were already struggling, and this just piles more troubles upon that crucial sector to the American economy." And Jacquelyn Omotalade, a supply-chain resilience and climate risk consultant, said that the effects of soaring diesel will not be “evenly spread” in terms of geography or the size of the impacted firms. “Large carriers and big shippers usually have fuel-surcharge clauses, hedges or the balance sheet to wait out a spike,” she told Newsweek. “Small carriers, owner-operators and delivery contractors often have none of those.” Omotalade added that consumers are likely to bear many of the effects both short-term—as carriers attempt to spread the higher costs—and long-term should this wave of bankruptcies continue. “When small carriers drop out, capacity tightens on the routes that depend on them: rural and regional lanes, perishables, and small retailers who can't negotiate freight terms,” she said. “Costs then arrive in food, construction and manufactured goods with a lag, so households may feel this months after the pump price peaks.” What Happens Next? President Donald Trump has consistently blamed Ukrainian strikes on Russian energy infrastructure for the recent spike to all-time highs, while floating export bans and relaxing rules on tax-free diesel to provide some relief to drivers and businesses. Most analysis, however, points to a lingering impact of the Iran war and the closure of the Strait of Hormuz. A recent recovery in crude flows through the vital waterway has not yet translated into a significant drop for diesel prices. And while U.S. allies have agreed to release more oil and diesel reserves to boost global supply and ease prices, some say it could be some time before those in the U.S. take notice. Omotalade said that Russia’s extended diesel export ban—set to last through October—and China’s suspension of its own fuel exports could add further upward pressure just as winter heating demand rises. Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here. Contact Newsweek editors on this story: John Fitzpatrick and Gray R. ThomasBy Hugh CameronReporter

0ShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.Another nationwide trucking company has filed for bankruptcy protection, as the wider logistics industry continues to grapple with near-record diesel prices and other economic headwinds.

As of Wednesday, AAA put the nationwide average at $6.30 per gallon of diesel, down from the all-time high of $6.53 reached in September but up from $3.68 a year ago. And the surge in fuel costs has placed significant pressure on firms that are reliant on affordable fuel. Recent research has pointed to a spike in sector layoffs and trucking bankruptcies, with the supply chain-focused publication FreightWaves finding 16 firms entered bankruptcy proceedings between late August and September 21.

And on Tuesday, the Chicago, Illinois-based trucking company Midwest Expedited Co. filed a petition for Chapter 11 relief with the Bankruptcy Court for the Northern District of Illinois.

Newsweek has reached out to a representative of the company via email for comment.

As outlined on its LinkedIn page, the interstate trucking company was founded in 2014 and operates a 20,000-square-foot facility in Illinois, with 95 trucks and a dispatch team that “works 24/7.”

Court documents did not state a reason for the Chapter 11 filing or whether this was in any way related to the rising costs of diesel. Filings listed assets in the range of $100,000 to $500,000 and between $1 million and $10 million worth in liabilities—later estimated at $2.3 million.

The company also reported $817,000 in revenue since the beginning of 2026, compared with $4.8 million over the whole of 2025 and $7.6 million the year prior.

The website TruckingDataBase says the company’s combined vehicle mileage in 2023 reached 2.3 million. Assuming current prices and that a truck gets seven miles to the gallon, this would imply an overall cost of nearly $2.1 million annually.

The economist Willy C. Shih, a professor of management practice at Harvard Business School, previously told Newsweek it could now cost around $3,000 for a truck to haul goods cross-country, based on $6.50-per-gallon diesel and assuming it gets seven miles per gallon.

“If you think that isn’t going to get passed on to consumers, think again, because nobody else along the chain can afford to eat that increase in costs,” he told Newsweek. “These high diesel costs also come at harvest time, and farm machinery all rely on diesel. Farmers were already struggling, and this just piles more troubles upon that crucial sector to the American economy.”

And Jacquelyn Omotalade, a supply-chain resilience and climate risk consultant, said that the effects of soaring diesel will not be “evenly spread” in terms of geography or the size of the impacted firms.

“Large carriers and big shippers usually have fuel-surcharge clauses, hedges or the balance sheet to wait out a spike,” she told Newsweek. “Small carriers, owner-operators and delivery contractors often have none of those.”

Omotalade added that consumers are likely to bear many of the effects both short-term—as carriers attempt to spread the higher costs—and long-term should this wave of bankruptcies continue.

“When small carriers drop out, capacity tightens on the routes that depend on them: rural and regional lanes, perishables, and small retailers who can’t negotiate freight terms,” she said. “Costs then arrive in food, construction and manufactured goods with a lag, so households may feel this months after the pump price peaks.”

President Donald Trump has consistently blamed Ukrainian strikes on Russian energy infrastructure for the recent spike to all-time highs, while floating export bans and relaxing rules on tax-free diesel to provide some relief to drivers and businesses.

Most analysis, however, points to a lingering impact of the Iran war and the closure of the Strait of Hormuz. A recent recovery in crude flows through the vital waterway has not yet translated into a significant drop for diesel prices.

And while U.S. allies have agreed to release more oil and diesel reserves to boost global supply and ease prices, some say it could be some time before those in the U.S. take notice. Omotalade said that Russia’s extended diesel export ban—set to last through October—and China’s suspension of its own fuel exports could add further upward pressure just as winter heating demand rises.

Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.

Contact Newsweek editors on this story: John Fitzpatrick and Gray R. Thomas