Patriot Transport, a freight hauling company established in 2006, has recently filed for bankruptcy, signaling financial distress within the transportation sector. The company’s Chapter 7 petition, submitted recently, estimates its assets to be between $1 million and $10 million, while its liabilities are considerably higher, ranging from $10 million to $50 million. This discrepancy highlights the significant financial challenges facing Patriot Transport.
The bankruptcy filing indicates that Patriot Transport has up to 999 creditors, though it anticipates having funds available to distribute to unsecured creditors. Among the top entities listed with the largest unsecured claims are notable organizations including the IRS of Philadelphia, which is owed over $692,000, Wesco Insurance Co. of Dallas, owed approximately $628,000, and Prologis 2 L.P., also of Dallas, with a claim of nearly $596,000. These figures underscore the substantial financial obligations accumulated by Patriot Transport.
According to data from the Federal Motor Carrier Safety Administration (FMCSA) SAFER website, Patriot Transport specializes in hauling general freight and paper products. At the time of filing, the company operated with a fleet of 35 power units and employed 35 drivers. Safety records from FMCSA reveal that Patriot Transport’s vehicles underwent 10 inspections in a 24-month period. Of these, three inspections resulted in vehicles being placed out of service, yielding a 30% out-of-service rate. This figure exceeds the national industry average of approximately 22.3%, as reported by FMCSA, suggesting potential areas for improvement in vehicle maintenance and safety standards at Patriot Transport.
In contrast, driver inspections for Patriot Transport show a stronger performance. Out of 20 driver inspections conducted, none resulted in drivers being placed out of service. This is notably better than the national average of around 6.7%, indicating a commendable driver safety record. However, despite the positive driver record, Patriot Transport’s trucks have been involved in one injury crash and five tow-aways within the past two years.
Expeditor Systems Also Files for Bankruptcy
Adding to the strain in the trucking industry, Expeditor Systems has also filed for bankruptcy. Similar to Patriot Transport, Expeditor Systems estimates both its assets and liabilities to be within the $1 million to $10 million range. The company’s petition lists up to 99 creditors and also indicates the expectation of fund distribution to unsecured creditors.
Expeditor Systems’ list of top creditors with the largest unsecured claims includes RTS Financial Services of Dallas, owed nearly $163,000, Chase Ink of Wilmington, Delaware, owed around $136,000, and the IRS of Philadelphia, with a claim of nearly $80,000. A significant portion of Expeditor Systems’ unsecured creditors, specifically seventeen out of the top twenty, are other trucking companies, each owed between $11,300 and $24,000. This suggests a ripple effect of financial difficulty within the trucking network associated with Expeditor Systems.
The FMCSA granted Expeditor Systems common carrier authority in August 2009. The company also specializes in hauling general freight. Interestingly, while Expeditor Systems initially reported operating 100 power units and employing 100 drivers, this was adjusted shortly after the bankruptcy filing. Three days after filing, Expeditor Systems updated its MCS-150 form, reducing its reported fleet size to 50 power units and 55 drivers.
Safety inspection data from FMCSA for Expeditor Systems reveals that its trucks were inspected 70 times, with 16 vehicles placed out of service within a 24-month period. This results in a 22.9% out-of-service rate, slightly above the national average of 22.3%. Driver inspections for Expeditor Systems, however, present a very favorable picture. Out of 185 driver inspections, only three resulted in drivers being placed out of service, leading to a 1.6% out-of-service rate. This is significantly lower than the national average of about 6.7%, demonstrating a strong focus on driver compliance and safety. Nevertheless, FMCSA data indicates that Expeditor Systems’ trucks have been involved in eight injury crashes and four tow-aways over the past two years, a higher incident rate compared to Patriot Transport.
Adding another layer of concern, both Patriot Transport and Expeditor Systems are facing cancellation of their Bodily Injury Property Damage coverage, scheduled for June 6, according to FMCSA records. This simultaneous coverage cancellation further exacerbates the precarious financial positions of both companies as they navigate bankruptcy proceedings.
These bankruptcy filings highlight the ongoing financial pressures within the trucking industry, impacting even established operators like Patriot Transport and Expeditor Systems. The details emerging from these cases provide valuable insights into the complexities and challenges faced by freight transportation businesses in the current economic climate.
