Valuetainment - $6 Diesel Is CRUSHING Truckers

00:00:00.040 Okay, when I sell my business, I want the best tax and investment advice.

00:00:04.800 I want to help my kids, and I want to give back to the community.

00:00:07.940 Ooh, then it's the vacation of a lifetime.

00:00:12.200 I wonder if my out-of-office has a forever setting.

00:00:15.740 An IG Private Wealth Advisor creates the clarity you need

00:00:19.060 with plans that harmonize your business, your family, and your dreams.

00:00:23.480 Get financial advice that puts you at the center.

00:00:26.440 Find your advisor at igprivatewealth.com.

00:00:30.000 trucking industry is taking a hit with diesel prices.

00:00:34.260 And this story is all over the place.

00:00:35.960 And for those that are in the transportation business, this is a real thing.

00:00:39.820 It's not something that's just being talked about that's not a real thing.

00:00:42.340 I'm trying to find this story, what page this is on.

00:00:45.200 Main 4.

00:00:45.840 Main 4. There we go.

00:00:47.180 Okay.

00:00:47.760 Trucking industry hit by string of bankruptcy filings as diesel cost surge.

00:00:53.220 Okay.

00:00:54.020 So let's read this.

00:00:56.820 A string of trucking and freight companies filed for bankruptcy in September as rising fuel insurance and operating costs squeeze an industry critical to moving goods across the U.S.

00:01:06.320 At least eight transportation-related companies saw Chapter 11 this month.

00:01:10.180 Truckload LLC owner Marcus Overcast told Fox Business that diesel and insurance costs contributed to its Florida bankruptcy with insurance the biggest pressure.

00:01:18.840 When gas prices go up or diesel prices go up, everything that goes from A to B is affected.

00:01:24.240 Automotive expert Lauren Fick said everything has to get somewhere somehow or everything gets more expensive.

00:01:30.560 Filter included, Global Master Incorporated, $1.1 million in assets, $3.26 million liabilities.

00:01:38.180 Pacer, all these companies have filed bankruptcy, by the way.

00:01:41.520 Trump moved this week to temporarily allow red-dyed diesel on highways.

00:01:45.660 Fick's estimated savings of $0.50, $2 per gallon.

00:01:48.960 Diesel sold for about $6.26 Thursday at a Flying J in Orange, Texas.

00:01:53.300 Tom, how important is this?

00:01:55.020 Because we have a client of ours who had 150 trucks that he bought when the market was good.

00:02:02.780 Diesel prices right now, he's selling them pennies on a dollar.

00:02:05.960 How long can a lot of these guys survive if this continues, Tom?

00:02:09.600 And what do you see is going to happen with this?

00:02:11.100 So the trucking industry has got a triple whammy here.

00:02:15.680 The first thing is interest rates.

00:02:18.540 Interest rates on those truck loans are up, just like interest rates on homes are up.

00:02:23.960 So now the cost of having a loan from my truck or underneath it, the leasing rate, that's also there, it's up.

00:02:31.260 So sort of the mortgage on these trucks.

00:02:33.380 These trucks are $150,000, $200,000, the cabs, the pullers.

00:02:39.080 And that's just where independent truckers buy those, and then they pull loads if they can get loads.

00:02:44.440 So number one, interest rates.

00:02:45.920 Number two, now diesel has taken what margin that they were able to work with and just squeezed it to death.

00:02:53.860 And so now they're seeking Chapter 11 protection.

00:02:57.860 These were not, and I dove into this, Pat, this is Chapter 11 protection.

00:03:02.800 So what Chapter 11 protection is allows you, Vinnie, I can go to court and I can say to a bankruptcy court, not like a magistrate, just say, hey, look, I need some help here.

00:03:12.760 I need to restructure these loans and redo this.

00:03:15.180 Can I get a certain amount of this debt forgiven? And then the court works for you to get that taken care of. And so between interest rates, between the changes in the amount of available loads to run right now, and the diesel cost, Pat, what little margin they had in there for EBITDA and for error is gone.

00:03:38.960 And so they're seeking bankruptcy protection to go to the court to get some of the debt forgiven or get it restructured so they can come out tomorrow and hopefully, if diesel prices are coming down, and then get new financing on their trucks.

00:03:54.960 But truckers, man, we need to appreciate them.

00:03:57.980 This is a foundational part of the American economy, moving stuff from port to store, from store to home.

00:04:05.800 And these truckers are out there, independent truckers, mom and pops that own two trucks and actually drive one of them.

00:04:13.480 This is a foundational part of our economy, and they're in trouble.

00:04:18.900 And this article citing a few of them right now, I'm worried that this is going to get worse with interest rates high and diesel continuing to be high, Pat, because there's just – you can only squeeze a P&L.

00:04:33.900 As you know, you consult with a lot of people in business.

00:04:36.920 You can only squeeze it so much.

00:04:39.020 Okay, when I sell my business, I want the best tax and investment advice.

00:04:43.660 I want to help my kids, and I want to give back to the community.

00:04:46.800 Ooh, then it's the vacation of a lifetime.

00:04:51.180 I wonder if my out-of-office has a forever setting.

00:04:54.580 An IG private wealth advisor creates the clarity you need with plans that harmonize your business,

00:05:00.180 your family, and your dreams.

00:05:01.900 Get financial advice that puts you at the center.

00:05:05.300 Find your advisor at IGPrivateWealth.com.

00:05:09.100 Yeah, I'm looking at numbers right now.

00:05:10.620 So according to Reuters, 16 companies filed for bankruptcy in the month of September.

00:05:15.740 Eight Chapter 11, eight Chapter 7 liquidation, jobs affected 250 plus.

00:05:21.000 These are prices, it says what it is.

00:05:23.440 These are prices one year earlier, 370.

00:05:26.040 So from 370, Vinny, to 653, that's a 74% increase.

00:05:30.300 Companies that filed bankruptcy, XOCO Transport Texas,

00:05:34.080 approximately 65 drivers, more than 40 trucks gone.

00:05:37.680 Globemaster, Illinois, approximately 51 trucks.

00:05:40.000 CLJ Transport in Florida.

00:05:41.440 Amazon Delivery Contract with approximately 30 drivers.

00:05:44.800 Truckload LLC Florida operated as Expedite Express.

00:05:48.360 RP Hale Hauling, Arizona, filed September 10th.

00:05:51.780 That's happening right now as we speak.

00:05:54.140 So an increase in diesel from 370 to 653.

00:05:58.380 what it means with each traveling 100 miles annually.

00:06:02.040 That's what truck drivers do.

00:06:03.240 They drive around 100,000 miles annually.

00:06:05.300 That means the annual fuel truck per truck is $43,538, okay?

00:06:12.820 Additional annual cost for 50 trucks, $2.1 million.

00:06:16.160 The 100 trucks, $4.3 million.

00:06:18.120 Bottom line is these guys are getting hit,

00:06:20.340 and there's only so much of a lifespan they can have.

00:06:24.520 And this is one of the reasons why Trump did the deal with Russia.

00:06:27.120 He is just trying to find a way to see how long it's going to go

00:06:29.900 and how long it's going to last.

00:06:30.980 But these prices have to be passed down to whoever is sending the shipment.

00:06:35.280 You have to pay that.

00:06:36.800 And every time this happens, those guys, there are certain jobs.

00:06:40.500 Every time you're on the freeway, you see a truck driver next to you.

00:06:43.580 That guy is away from his family.

00:06:45.400 They are patriots for us.

00:06:47.620 In the economy, they're patriots, and they're getting hit by this.

00:06:49.960 Adam, thoughts?

00:06:50.680 No, I mean, I've seen you consult with BDC, many trucking companies.

00:06:56.320 What do you think they're feeling right now?

00:06:57.700 What are the conversations you guys are having internally

00:06:59.760 with people who are going through this?

00:07:02.020 Marketing conditions, inflation, energy.

00:07:03.880 What's your advice?

00:07:04.440 How much cash are they sitting on?

00:07:06.020 How much cash are they sitting on to be able to afford?

00:07:08.460 It's really how long I can go with these rates.

00:07:11.440 And then it gets to a point where you sit there and say,

00:07:14.540 okay, let's do a job.

00:07:16.060 $3,000.

00:07:16.940 How much am I making on this?

00:07:18.300 You're losing $50.

00:07:19.660 How many of those can you do?

00:07:21.680 So then if I go and tell the business owner,

00:07:23.840 I'm sorry, I have to do $3,300.

00:07:25.760 for the load. Don't worry. I'm going to go to the other guy. He's doing it for me for $3,040.

00:07:30.300 Okay. Now I lost. So then I put the truck on stop. Then my truck driver now has to go work

00:07:35.180 for a different person. Then I lost those guys for different routes. Then what did the drive?

00:07:39.460 So it's such a divides the business owner against the driver, against the guy that needs the driver.

00:07:46.020 And then he has to raise the prices. Then he has to go to Amazon or Walmart or Target and say,

00:07:51.180 that product was 38 cents now it's 48 cents you know or this product was two dollars and 48 cents

00:07:56.580 now i got to sell it to you at four and a half what this is not four dollars and 50 cents i get

00:08:00.980 it but gas was also it's just i don't want to i don't want to simplify this but i remember a

00:08:06.280 conversation you had with i won't say his name but he was hesitant in this was maybe under biden i

00:08:12.980 think because this was years ago when gas prices were this high and he was hesitant to raise the

00:08:18.620 price to the consumer i don't know if you're like listen you're gonna have to pass this on to the

00:08:22.620 consumer it's almost like if they raise the minimum wage you know your hamburger used to cost nine

00:08:26.840 bucks so do you remember the story i'm talking he made four and a half million bucks yeah okay

00:08:30.620 so at what point do you say listen i'm about to go bankrupt i have to raise the price of the

00:08:35.060 consumer in order to stay afloat like supply and demand so if you're the business owner i have the

00:08:39.740 conversation with you i have to have it yeah because you have to stay in business you can't

00:08:44.020 not stay in business.

00:08:45.260 And if you know how to predict the future on when the diesel gas prices are going to

00:08:49.480 come down, you don't know how to do that, right?

00:08:51.400 Of course.

00:08:52.180 So I have to sit there and say, Adam, look, I have to have this conversation with you.

00:08:56.120 My cost is up.

00:08:57.880 I'm out here.

00:08:58.580 I'm literally showing you my spreadsheet.

00:09:00.220 This is where I'm at.

00:09:02.120 What do you want me to do?

00:09:03.520 If I don't make 15% here, I'm out of business.

00:09:08.920 So either I say no to you now, or are you willing to come up 15%?

00:09:14.800 And it has to be as honest of a conversation as possible,

00:09:17.860 or else I'm not making any money.

00:09:20.540 So what do you want to do?

00:09:21.340 And then you have to sit there and say,

00:09:23.080 I got the other guy that's sitting on $48 million of cash in a bank,

00:09:27.100 that he'll do it at this discount because he knows he's trying to put you out of business.

00:09:30.780 What are you going to do?

00:09:31.920 Are you going to raise it 15% or are you going to go with that guy?

00:09:34.780 What would you do?

00:09:35.640 Because you have to answer to your shareholders.

00:09:37.340 It's not tough decisions.

00:09:38.740 Most of the guys are going to that guy, and you just put me out of business.

00:09:41.800 And I only have $800,000 in a bank.

00:09:44.400 So this is going to put the smaller trucking industry guys out of business,

00:09:49.340 and you don't want that because you want competition.

00:09:51.880 But unfortunately, a lot of them don't have the cash to last longer.

00:09:56.220 Guess what's coming up on November 3rd.

00:09:57.620 Tom, what is coming up on November 3rd?

00:09:59.420 Midterm elections, very important for America.

00:10:01.360 Yes, it is.

00:10:02.000 And it's going to be crazy because some states are going to be happy.

00:10:04.320 Some states are not going to be happy.

00:10:05.740 In Florida, people are worried on who's going to win the governor race right now,

00:10:09.440 but there's a lot of different races.

00:10:11.060 You've got the Ohio stuff.

00:10:11.920 You've got all this Tallarico packs and stuff that's going on.

00:10:14.560 So we are doing an election night, and if you remember the last one we did,

00:10:19.480 it was the biggest election night event in the world.

00:10:22.880 Literally, when I say that, it was number one live stream world.

00:10:26.220 But, of course, this is not presidential.

00:10:28.500 This is midterm, so it's going to be a different format.

00:10:31.080 But if you want to be a part of it, there's one way you can do it,

00:10:33.220 and we're going to have some very special guests with us.

00:10:34.960 guests that you may want to meet.

00:10:36.880 Maybe play this clip for some of you folks

00:10:38.840 that want to come join us on election night.

00:10:40.560 Go ahead.

00:10:41.620 Two years ago, we held the biggest election night event

00:10:44.040 here right here behind this hangar.

00:10:46.200 This year, November 3rd, 7 p.m. to 11 p.m.,

00:10:49.780 we are doing it at our private members-only club

00:10:53.080 Boardroom Cigar Lounge.

00:10:54.280 So, Tom, why don't you let the folks

00:10:55.700 know what we'll be covering that night.

00:10:56.760 We will have live results as they come in,

00:10:58.980 race by race, the important ones,

00:11:00.900 all the datas, winners, losers, and why. 0.98

00:11:03.160 We will laugh.

00:11:03.920 Some states may cry, but we'll have a great time.

00:11:06.520 So if you want to be a part—Vinny, I'm in the middle of a shoot, Vinny.

00:11:09.140 Oh, what are you guys shooting, though?

00:11:10.220 This is about election night, November 3rd, 7 p.m. to 11 p.m.

00:11:13.800 At the Boredom Cigar Live.

00:11:14.940 I'm coming.

00:11:15.500 You're going to be there?

00:11:16.020 I will see you there.

00:11:16.940 Guys, can you get rid of the guy sitting in the back?

00:11:20.060 You're not invited. 0.99

00:11:21.220 Damn. 0.99

00:11:21.860 Come on, Pat. 1.00

00:11:22.800 Guys, get out of here.

00:11:23.900 Again, November 3rd, 7 p.m., 11 p.m.

00:11:26.880 Looking forward to seeing you there.

00:11:28.260 Fill out your application.

00:11:29.680 Our team will get a hold of you.

00:11:31.480 There you have it.

00:11:32.080 So for those of you guys that want to join us, election night, November 3rd, go to BoardroomCigarLounge.com.

00:11:37.960 Again, BoardroomCigarLounge.com or go on that QR code, fill out the application.

00:11:43.500 It'll be only members.

00:11:44.760 And by the way, when you come to us that night, there's a few things you need to know at our Boardroom Cigar Lounge that we have.

00:11:50.140 No phones get to make it in there except for the night that we're doing election night in that big room.

00:11:55.220 You'll be there, but I can't tell you who's going to be there.

00:11:57.040 So some of you guys may meet some interesting people.

00:11:59.220 And so we're working on the list.

00:12:00.440 We may announce some of the guests, but it's going to be a smaller intimate group, members only.

00:12:06.200 So 7 p.m., 11 p.m., many people will be there early.

00:12:09.380 Great networking opportunity.

00:12:10.700 It'll be business folks.

00:12:11.980 Go to Portum Cigar Lounge, fill out the membership information, and somebody will get a hold of you.

00:12:16.580 If you enjoyed this video, you want to watch more videos like this, click here.

00:12:19.200 And if you want to watch the entire podcast, click here.

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Valuetainment - October 16, 2026

$6 Diesel Is CRUSHING Truckers

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