Why So Many Trucking Companies Are Going Bankrupt in California

by TRUCKERS VA
(UNITED STATES)

If you’ve been paying attention to the trucking scene in Cali, one thing’s for sure:

Fleets are falling off faster than Hollywood reboots.

Owner-operators, small fleets, and even legacy carriers are tapping out — and it ain’t just bad luck. There’s a perfect storm brewing in the Golden State, and unless you’re rolling electric and running loads for Amazon, it’s hard to keep your head above water.

Let’s break down what’s really going on.

1. California’s Laws Are Crushing the Little Guys

If you’re a one-truck operation or a small fleet, California’s regulations feel like a constant slap in the face.

Here’s a taste of what’s been hitting hard:

• AB5 Law – This anti-independent contractor law basically outlawed lease-on owner-operators. Suddenly, thousands of drivers were told “you're either a full-time employee, or you’re illegal.”
• CARB Regulations – California Air Resources Board mandates cleaner trucks. That means if your truck ain't newer than 2010 — it's banned.
• Insane Insurance Costs – Premiums in California are sky-high, especially for new authority holders.

Put all that together, and it’s no surprise that small outfits are folding like lawn chairs.

2. Fuel Prices? Don’t Even Get Us Started

California fuel prices are so high, they need their own zip code.

When diesel hits $6+ a gallon, every mile is a gamble. Trucking is a margin game, and when 40% of your revenue goes into the tank, that leaves little for maintenance, insurance, or food that didn’t come from a vending machine.

Compare that to a driver in Texas or Missouri — they’re saving thousands per month, just because they don’t have to fuel up in the People’s Republic of California.

3. Rates Are Trash, But Costs Keep Climbing

The spot market collapsed, and contract rates followed. Meanwhile:

Labor costs? Up.

Equipment? Still overpriced.

Compliance fees? Always increasing.

Cargo thefts? Don’t even ask.

California is one of the most expensive places to run a trucking business, and it’s becoming harder to justify doing business there at all.

4. Freight Is Leaving the State

Some of the biggest shippers are routing their freight through Arizona, Nevada, and Texas instead — because it's cheaper and they don’t want to deal with California’s endless red tape.

That means even if you’re based in Cali, the loads worth chasing are rolling through other states. And if you're stuck local, your options are shrinking by the week.

5. It’s Political — But It’s Also Predictable

California has been making moves toward a "green future", and that sounds nice… until you realize it means banning diesel trucks by 2045.

The CARB rules are just the start. If you’re not on board with electric fleets, you’re going to be regulated into extinction.

And the truth is — many small companies can’t afford to switch.
It’s not that they’re lazy or outdated. It’s that the math doesn’t add up.

The Human Cost Nobody Talks About

Every time a company goes under, it’s not just a line in a report. It’s a family losing their future. It’s a driver rethinking their career. It’s someone’s dream getting repo’d.

California’s policies may be aimed at environmental goals, but the people paying the price are truckers who played by the rules — until the rules changed.

Bottom Line: If You’re Not Big or Backed, You’re at Risk

It’s hard to survive in California trucking right now if:

You don’t have deep pockets

You’re running older equipment

You rely on flexibility as an independent

This ain’t just a “rough patch.” This is a fundamental shift. And the ones who make it through? They’ll be the ones who adapt fast or get out smart.

Want Out? Or Want to Fight Smarter?

If you’re tired of getting squeezed by the system, don’t wait until your wheels stop turning.

👉 Learn the real ropes at LifeAsATrucker.com
— especially if you're just starting or want to expand.
👉 Start building online income during your off-duty hours at OffDutyMoney.com
. Don’t wait for California to push you out — get ahead now.