Another big name Chapter 11 closes out challenging trucking year

Industry Overview - The trucking industry faced significant challenges in 2025, marked by numerous bankruptcies, rising costs, and uncertain futures for major players [1] - The American Transportation Research Institute (ATRI) highlighted the critical need for operational cost data as the industry navigates rising costs and decreasing margins [2] Cost Trends - Cost trends varied across different categories; while fuel and maintenance expenses decreased, driver wages increased by 2.4%, becoming the primary contributor to cost increases post-pandemic [3] - The average cost of operating a truck decreased by 0.4% year-over-year to $2.260 per mile, but when excluding lower fuel costs, marginal expenses rose by 3.6% to a record $1.779 per mile [8] Bankruptcy Cases - Texas International Enterprises Inc. filed for Chapter 11 bankruptcy, but unlike other companies, it did not leave drivers stranded or unpaid [5] - The company is seeking permission to use cash collateral to continue operations during restructuring, facing objections from creditors [6] - The carrier operates approximately 280 power units and employs around 600 drivers, with potential layoffs depending on the restructuring outcome [7] Market Conditions - The truckload market remains soft, with no significant changes in demand or capacity, aside from seasonal fluctuations and shipper tactics [4] - The combination of various factors has led to multiple bankruptcies in the trucking and freight sector [4]