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Q1 Report: Trucking had highest level of bankruptcy since ‘01

In the first quarter of 2008, the trucking industry experienced the highest same-quarter levels of
firms going bankrupt since 2001.

In the first quarter of 2008, the trucking industry experienced the highest same-quarter levels of
firms going bankrupt since 2001.

Bankruptcy shut down 925 firms nationwide in the past
quarter, according to a report by Tennessee-based Avondale Partners, an
investment banking firm with interests including health care, communications,
financial services and trucking.

Avondale blamed the spike in trucking failures on companies’
inability to collect fuel surcharges that keep up with the rising cost of
diesel. Add to that the expense of renewing licenses and insurance, and
trucking firms already teetering on the brink were forced into bankruptcy,
according to the report.

The recent closures parked an estimated 42,000 trucks, or
more than 2 percent of the nation’s heavy-duty capacity, according to the
report. Smaller firms were hit hardest, but the average size of firms increased
to 45 trucks, meaning hard times hit larger firms too.

There were more than 1,100 company failures in the first quarter of 2001. By that year’s end, 110,000 trucks were off the road,
according to the report.

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