29 truck carrier files Chapter 11

Company Overview - VIB Trans, Inc. has filed for Chapter 11 bankruptcy protection amid the Great Freight Recession, marking a significant downturn in the trucking industry [1][2] - The company operates a fleet of 29 trucks and employs 34 drivers, having started its operations in 2018 [1] Industry Challenges - The trucking sector is experiencing a turbulent period, with trucking volumes dropping by 18% year-over-year due to a collapsing industrial economy [2] - Over 200,000 non-domiciled commercial driver's licenses have been issued since 2019, leading to an influx of more than 310,000 trucks and creating excess capacity in the market [3] - This overcapacity has resulted in a depressed rate environment, where new entrants are squeezing out veteran companies [4] Economic Impact - The expiration of SNAP funding is anticipated to further destabilize the market, as government assistance has been a crucial driver of freight demand [4] - Recent events include a major flatbed operator ceasing operations, resulting in 1,000 job losses, and another Alabama-based trucking firm filing for Chapter 7 liquidation, cutting an additional 1,000 jobs [5] - Smaller carriers like VIB Trans, particularly those with fleets under 50 trucks, are especially vulnerable to elevated operating costs and low demand [5]