7 more freight carriers go bankrupt in Q3, another shuts down
Starion Bank is owed more than $1.4M on trucks, other assets
Seven more freight companies filed for bankruptcy over the past month, as unsecured debt racked up, although some transportation subsectors are showing strength.
These freight carriers, ranging from specialty short-haul providers to long-haul logistics firms, filed for Chapter 11 bankruptcy, according to U.S. Bankruptcy Court documents obtained by Equipment Finance News.
- Bartram Logistics filed on Sept. 9 in the Middle District of Tennessee;
- CLB Trucking filed on Aug. 15 in the Western District of Pennsylvania;
- H5 Transport filed on Sept. 16 in the District of North Dakota;
- Oscar A. Lopez Trucking filed on Sept. 10 in the Southern District of Texas;
- RMS Carriers filed on Sept. 12 in the Southern District of Texas;
- Russ’s Mulch & Trucking filed on Sept. 12 in the Eastern District of Wisconsin; and
- Xtreme Quality Logistic filed on Aug. 15 in the Middle District of Florida.
At least 16 transportation firms have filed for Chapter 11 bankruptcy so far in the third quarter, following at least 20 filings in Q2.
In the H5 Transport filing, Bismarck, N.D.-based Starion Bank is claiming more than $1.4 million in unsecured funds tied to seven commercial vehicles, an insurance package, a computer monitor and various office supplies.
Oscar A. Lopez Trucking is claiming ownership interest in eight heavy-duty trucks with a combined estimated value of $714,850, although it’s unclear which lenders financed these assets.
Other lenders affected by the recent filings include:
- Amur Equipment Finance;
- Paccar Financial;
- Palmetto Citizens Federal Credit Union;
- Stearns Bank; and
- Ally Financial.
Meanwhile, Groveland, Fla.-based trucking company Carroll Fulmer Logistics ceased operations on July 29 after 71 years in business.
Finding bright spots
The trucking industry continues to face challenges such as rising operating costs, low freight rates, overcapacity and tightened lending standards. While equipment lenders are rightfully cautious of the transportation segment, some subsectors are thriving.
Carriers of high-value produce, for instance, are performing “exceptionally well,” Dean Croke, principal analyst at DAT Freight and Analytics, an information services and solutions provider, told EFN.
“Your high-value produce hauler that is a specialist cherry hauler, or a specialist avocado hauler out of Texas, or the guys that haul butter and cheese out of Wisconsin, they’re running trucks bordering on seven figures,” he said.
Diversified transportation firms that carry “freight of all kinds” are also faring well and are resilient to economic challenges, Croke said. These types of carriers have ample jobs and can complete them quickly partly because “there’s no differentiation in the equipment” needed.
“It’s anything that will fit in a 53-foot trailer,” he said. “Like someone with a multizones reefer truck with side doors is going to be doing really well in any market.”
Conversely, a dry-van carrier that only hauls box freight is more vulnerable to industry challenges and economic volatility, he said.
Check out our exclusive industry data here.
