How have trucking bankruptcies affected capacity? How many trucking companies went out of business in this recession?
Batts: Donald Broughton at Avondale Partners reported that the number of trucking companies that filed for bankruptcy in the second quarter was the lowest number since the first quarter of 2007 – opposite of what anyone should have expected. There were guys that got credit that should have declared bankruptcy, that should have been pushed out of the market. Lenders are just not closing the doors on them, because they know those trucks are not worth what they’re carrying them on the books. Clowdis: Capacity is still way over. The number of bankruptcies has been low because lenders are keeping them in business. Many trucking companies with debt are rearranging their lending agreements, and in some cases, this debt is almost forgiven. In other cases, it’s a pay-us-when-you-can scenario. If the economy recovers soon, this is a good thing. However, I don’t see a recovery for all of them. Those companies with good cash flow and little debt will survive these times. Starks: Bankruptcies are l
