16 Carriers File Bankruptcy, Alabama's $100M Rail Terminal, & CDL Rule Faces Court Skepticism | The Morning Minute

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We kick things off with a sobering wave of financial distress hitting carriers across the country. At least 16 trucking, delivery, and transportation companies entered bankruptcy proceedings between late August and September 21st, according to federal court filings and carrier records. The filings come as trucking companies continue navigating a freight environment marked by rising diesel fuel prices and other elevated operating costs. The geographically widespread cases include Chapter 11 filings from carriers ranging from small owner operators to fleets operating dozens of trucks spanning general freight, last mile, agricultural, and specialized trucking operations. Among the larger Chapter 11 cases are Illinois-based Globemaster Incorporated, which operates 51 power units and Texas-based Zoco Transport, which has more than 40 tractors, 65 drivers, and 70 trailers. Several smaller carriers filed Chapter 7 cases, which typically involve liquidation rather than reorganization. Over on the rails, Alabama is pushing forward with a massive infrastructure project designed to connect inland shippers directly to the Port of Mobile. Construction of the Alabama Port Authority's Montgomery Intermodal Container Transfer Facility remains on schedule for an early 2027 opening, with site grading and underground utility work completed and rail infrastructure construction now underway. The $100 million 272-acre terminal will provide direct CSX rail service, creating a rail alternative to truck drayage between the coast and the Montgomery market. At full operation, the terminal is expected to handle up to 60,000 container units annually or approximately 30,000 40-foot equivalent containers. The facility is planned to operate five days a week with daily express rail service between Mobile and Montgomery. And the authority in September awarded Finland-based Kona Cranes a contract to supply two rubber-tired gantry cranes scheduled for delivery in late 2026 Finally, a major legal battle over federal trucking rules saw some revealing courtroom dynamics last week. In oral arguments before the US. Court of Appeals for the District of Columbia in the case of Lujan versus the Federal Motor Carrier Safety Administration, judicial questioning appeared to show more skepticism toward the Department of Transportation's position than toward plaintiffs challenging recent Fmcsa changes regulating the issuance of commercial drivers licenses to non-domiciled drivers. The judges questioned why the DOT's rationale for narrowing acceptable documentation to an unexpired passport and a form I-94 made sense, particularly if a non-domiciled applicant could provide 10 years of driving history. Lead Plaintiff Jorge Rivera Lujan is a DACA immigrant and the new rule, which went into effect in the spring, no longer accepts employment authorization documents as proof of eligibility. The court battles over the Fmcsa CDL rule continue with oral arguments set for September 28 in New York's challenge to the rule.