October’s bankruptcy spike: 5 carriers file for Chapter 11 in just two weeks

5 transportation companies file for Chapter 11

FreightWaves conducted its research using the Public Access to Court Electronic Records (PACER) database, where it found that five transportation companies—ranging from small to large—had filed for Chapter 11 in the first two weeks of October. While there is no definitive data confirming whether this is the highest number so far this year, an average of 2.5 filings per week points to a concerning trend.

These are the companies that filed for Chapter 11 in the first half of October, according to data shared by FreightWaves:

1. GEC Transport Solutions

Based in Pharr, Texas, the company operates 70 power units and has been serving the area near the Mexican border since 2015. GEC Transport Solutions filed for Chapter 11 in the Southern District of Texas, stating that there will be no funds available for unsecured creditors after administrative expenses are paid.

The company reported assets and liabilities between $1 million and $10 million. Its largest unsecured debts are loans from Alan McDaniel, totaling approximately $1.05 million. It also reported an out-of-service (OOS) rate below the national average: 13% for vehicles and 3.3% for drivers, compared to national averages of 22.26% and 6.67%, respectively.

2. Propel Trucking

Propel Trucking, based in Russellville, Arkansas, filed for bankruptcy in the Eastern District of Arkansas under the name Propel Trucking, also operating as Propel Logistics and Propel Xpress.

• The company reports between 1 and 49 creditors.
• Estimated assets are between $0 and $50,000, while liabilities range from $1,000,001 to $10 million.
• The largest unsecured creditor is BMO Bank NA, owed $693,928.46.
• Other significant debts include Wells Fargo Equipment Finance ($231,000) and Wintrust Specialty Finance ($276,300).

3. R&R Transport & Logistics

Headquartered in Houston, R&R Transport & Logistics presents itself as both a carrier and a broker. It should not be confused with a larger company of the same name based in Pittsburgh. According to FMCSA, it operates 20 power units and had an OOS rate of 18.2% over the past two years.

Financial details include:

• $35,000 in available cash
• $266,000 in accounts receivable
• Total assets (including equipment): approximately $1.12 million
• Total liabilities: approximately $1.49 million

4. G1 Transport

G1 Transport, a small Georgia-based carrier with only five power units according to FMCSA, filed for Chapter 11 in the Northern District of Georgia. The filing includes seven hand-listed creditors with no legal representation indicated, with estimated assets from $50,001 to $100,000, and estimated liabilities from $500,001 to $1 million

5. Styx Logistics

Styx Logistics, based in Reno, Nevada, is an Amazon Delivery Service Partner (DSP). According to FMCSA, it operates 30 power units, likely delivery vans rather than heavy-duty trucks. It reports fewer than 50 creditors, with estimated assets between $50,000 and $100,000, and liabilities ranging from $1,000,001 to $10 million.