Bankruptcies Hit Two-Year Low; Rising Fuel Costs May Hurt Profits

img src="/sites/default/files/images/articles/failure0923.jpg" width=350 align=right>Trucking company failures in the second quarter fell to their lowest level since the end of 1999, as the economy was in recovery from last year's recession, a new study shows.

However, the historical correlation between bankruptcies and diesel prices also suggests that newly rising fuel costs could soon spark another round of closings.

Investment brokerage A.G. Edwards & Sons reported that 495 motor carriers with five or more power units went out of business from April through June. The last time the figure was lower was the fourth quarter of 1999, when only 280 carriers closed their doors.