New trucking bankruptcies expose mounting debt and shrinking fleets

Financial distress continues to affect trucking companies across the U. S. , with at least 16 carriers filing for bankruptcy protection between Sept. 18 and Oct. 21. According to a FreightWaves review of federal bankruptcy records, the filings span multiple freight segments, including general freight, petroleum transportation, logging and timber hauling.

They also involve companies ranging from single-truck operators to carriers reporting dozens of power units. The bankruptcies include both Chapter 7 liquidation cases and Chapter 11 proceedings, which generally allow businesses to restructure debts while potentially continuing operations.

Among the larger carriers identified in the review are Illinois-based Georgia-based KLS Logging Inc. , which lists 53 power units and 28 drivers; and McAllen, Texas-based American Petroleum Carriers, which filed for Chapter 11 protection. The company lists 16 trucks and 10 drivers.

The filings highlight financial challenges confronting smaller trucking businesses. Illinois carrier lists $2. 3 million in liabilities Chicago-based Midwest Expedited Co. filed for Chapter 11 bankruptcy protection Oct. 6 in the U. S. Bankruptcy Court for the Northern District of Illinois.

The company, which lists 95 trucks on its LinkedIn page but seven Freightliner trucks specifically identified in its bankruptcy schedules, reported approximately $2. 31 million in liabilities against just $108,351 in assets, according to its bankruptcy schedules. The filing lists $935,384 in secured claims and approximately $1.

38 million in nonpriority unsecured claims. Midwest Expedited’s bankruptcy schedules identify seven Freightliner M2 trucks from the 2023 and 2024 model years, collectively valued at $107,500. The seven vehicles listed in court documents are not necessarily representative of the company’s previously reported fleet size.

Texas carrier reports sharp revenue decline In El Paso, Texas, Site2Site Transport filed for Chapter 7 bankruptcy protection Sept. 29 after reporting a substantial decline in annual revenue. According to its bankruptcy filing, the company generated 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. Site2Site also disclosed leases involving eight trucks and liabilities exceeding $493,000. The Chapter 7 filing indicates the company is pursuing liquidation rather than a traditional Chapter 11 restructuring.

Another Texas carrier, McAllen-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. Bankruptcy filings extend across multiple states Other filings illustrate how bankruptcy proceedings are affecting trucking operations of different sizes.

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

In Oregon, Lakeview-based Eskil Trucking filed for Chapter 11 protection after reporting more than $1 million in liabilities and no more than $500,000 in assets. The company previously reported seven trucks and six drivers.

Its bankruptcy filing identified nearly $855,000 owed to Sargent Transportation, another southern Oregon trucking company, as its largest creditor claim. Several Illinois-based transportation businesses also sought bankruptcy protection. 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 number of trucks it owned or operated was not established in the information reviewed.

Lake Zurich-based Xcalibur Logistics, which lists one truck and one driver, also filed for Chapter 7 protection. In North Carolina, FAB Trucking LLC filed Chapter 11 in the Eastern District of North Carolina, while High Point-based Porter’s Hauling LLC filed Chapter 7.

Another High Point carrier, Queen’s Hauling LLC, was identified in bankruptcy records, although the chapter was not established in the available research. Additional filings involved Wooten 4 Trucking LLC in Illinois, Jotham Trucking LLC in Michigan, Tros Logging in Alabama and Gerek Trucking in West Virginia.

Fleet and bankruptcy filing breakdown CompanyTrucks / power unitsDriversBankruptcyMidwest Expedited Co. 95 reported; 7 in asset schedules—Ch. 11KLS Logging Inc. 5328Ch. 11Site2Site Transport8 leased—Ch. 7Eskil Trucking76Ch. 11Maksteel Transport LLC53Ch. 11Windy City Supply Chain LLC—20 owner-operatorsCh. 7Douglass Logistics LLC1510Ch