Business Bankruptcies Rise In 2024

Business bankruptcies in the U.S. have reached their highest levels in several years, particularly in recent quarters. According to federal data, the second quarter of 2024 saw bankruptcy filings reach peaks not seen since Q2 2017, with many companies either liquidating assets or reorganizing their finances.

BMO reported in August that loans—including those from transportation customers—were increasingly flagged as impaired, with risks anticipated to remain high for several quarters.

Recent trucking bankruptcies from California to Texas have exposed financial struggles, with some firms reporting expenses that are twice their revenue, alongside fluctuations in income.

The American Trucking Associations noted that firms with 10 or fewer trucks comprise over 95% of the industry, and trucking leaders continue to highlight challenges related to overcapacity. Despite this, analysts emphasize that demand will be crucial for a market turnaround.

Among the Chapter 7 trucking bankruptcies, U.S. Logistics Solutions ceased operations in June, and its case is currently progressing through federal bankruptcy court in the Southern District of Texas. In July, the company reported assets valued at $117.9 million and liabilities of $21.1 million.

Source: Trucking Dive.