Trucking Bankruptcy Wave Signals Rising Debt and Shrinking Fleets

New trucking bankruptcies expose mounting debt and shrinking fleets

At least 16 trucking companies sought bankruptcy protection between Sept. 18 and Oct. 21, 2026, according to a review of federal bankruptcy records. The filings cover carriers in multiple states and include both Chapter 7 liquidation cases and Chapter 11 reorganizations.

The companies operate in several segments of the transportation industry, including general freight, petroleum hauling, logging and timber transportation. They range from small operations with a single truck to carriers reporting dozens of power units and drivers.

The filings provide a snapshot of the financial pressure facing smaller trucking businesses. They also show that fleet figures can change significantly depending on the source and reporting date. In some cases, the number of trucks listed in bankruptcy schedules is far smaller than a company’s previously reported fleet.

Midwest Expedited reports $2.3 million in liabilities

Chicago-based Midwest Expedited Co. filed for Chapter 11 protection on Oct. 6 in the U.S. Bankruptcy Court for the Northern District of Illinois.

The company reported approximately $2.31 million in liabilities and $108,351 in assets. Its schedules listed about $935,384 in secured claims and approximately $1.38 million in nonpriority unsecured claims.

Midwest Expedited’s bankruptcy documents identified seven Freightliner M2 trucks from the 2023 and 2024 model years, with a combined value of about $107,500. The company’s LinkedIn page had listed 95 trucks, but the vehicles identified in the court schedules may reflect only the assets included in the proceeding and are not necessarily a current fleet count.

Site2Site moves toward liquidation

El Paso-based Site2Site Transport filed for Chapter 7 bankruptcy on Sept. 29. Unlike Chapter 11, which generally allows a company to continue operating while restructuring its debts, Chapter 7 typically involves liquidation.

Site2Site reported approximately $2.1 million in gross revenue in 2024, compared with $1.6 million in 2025, a decline of roughly 24%. The filing reported no gross revenue from Jan. 1, 2026, through the bankruptcy filing date.

The company disclosed leases involving eight trucks and reported liabilities exceeding $493,000. For drivers and leased operators, a liquidation proceeding can raise questions about vehicle leases, unpaid wages, receivables and whether freight operations will continue while assets are handled through the court process.

Carriers in Texas, Georgia and Oregon also file

McAllen, Texas-based American Petroleum Carriers filed for Chapter 11 protection in the Southern District of Texas under case number 26-70331. The company lists 16 trucks and 10 drivers.

KLS Logging Inc., based in Lyons, Georgia, filed for Chapter 11 in the Southern District of Georgia. Federal Motor Carrier Safety Administration information included in the review lists 53 power units and 28 drivers. The company primarily transports logs, poles, beams and lumber.

Eskil Trucking, based in Lakeview, Oregon, also filed for Chapter 11. The carrier reported more than $1 million in liabilities and no more than $500,000 in assets. It previously reported seven trucks and six drivers. Its bankruptcy filing identified nearly $855,000 owed to Sargent Transportation as the company’s largest creditor claim.

Illinois filings include several small fleets

Several Illinois transportation companies sought protection during the same period. Maksteel Transport LLC filed Chapter 11 on Sept. 23, listing five trucks and three drivers. Douglass Logistics LLC filed Chapter 11 the same day, reporting 15 trucks and 10 drivers.

Windy City Supply Chain LLC filed Chapter 7 on Oct. 2. The company listed 20 owner-operator drivers, although the available information did not establish how many trucks it owned or operated. Lake Zurich-based Xcalibur Logistics, which lists one truck and one driver, also filed for Chapter 7.

Other Illinois filings involved Wooten 4 Trucking LLC, which listed two trucks and filed Chapter 7, and FAB Trucking LLC, which filed Chapter 11 in North Carolina. High Point-based Porter’s Hauling LLC filed Chapter 7, while Queen’s Hauling LLC was identified in bankruptcy records without a confirmed chapter in the available information.

Broader pressure on smaller carriers

Additional filings included Jotham Trucking LLC in Michigan, Tros Logging in Alabama and Gerek Trucking in West Virginia. Tros Logging listed three trucks and filed Chapter 11. Gerek Trucking listed three trucks, while the chapter for its case was not established in the reviewed material.

The filings come as trucking companies continue to manage elevated diesel prices and other operating costs. Smaller carriers can be particularly exposed when revenue falls while truck payments, insurance, maintenance, fuel and driver-related expenses remain due.

The bankruptcy cases do not, by themselves, establish an industrywide increase in filings. They do, however, document financial stress among carriers of varying sizes and highlight the importance of watching a company’s debt load, equipment obligations and available work.

For drivers, the cases also underscore the practical risks tied to a carrier’s financial condition, including delayed pay, changes in dispatch operations, equipment repossessions and uncertainty over leased trucks. The outcome in each case will depend on the company’s court filings, creditors and whether the business is liquidated or permitted to reorganize.