CTOA - CTOA - Canada Truck Operators Association

Association urges governments to monitor transportation impacts and consider targeted temporary relief if elevated fuel costs persist

Mississauga, ON, September 10, 2026:- The Canada Truck Operators Association (CTOA) is calling on federal and provincial governments to closely monitor the impact of rapidly rising diesel prices on small and mid-sized trucking businesses and Canada’s supply chain.

As of September 10, Canada’s volume-weighted average retail diesel price was approximately $2.49 per litre, according to Kalibrate Canada, adding significant new operating pressure for carriers already facing challenging freight conditions, rising equipment and insurance costs, and tight operating margins.

For trucking companies, particularly smaller fleets and owner-operators, increases in diesel prices are felt immediately at the fuel pump, while the ability to recover those costs through freight rates or fuel surcharges can take considerably longer.

“When diesel prices increase this quickly, trucking companies pay that additional cost immediately, but recovering it from customers may take weeks or may not be fully possible at all,” said Tejpreet Dulat, Director of Government and Public Affairs with the Canada Truck Operators Association. “For a small carrier operating 10, 20 or 50 trucks, even relatively small increases per litre can translate into substantial additional weekly operating costs.”

While fuel surcharges can help larger contractual operations manage fluctuations, CTOA says they do not eliminate the pressure facing many small and mid-sized carriers, particularly companies operating in competitive freight markets where rates cannot always be adjusted immediately.

Supply-chain costs can eventually reach consumers

CTOA cautions that prolonged increases in diesel prices affect more than trucking companies.

Trucks transport groceries, construction materials, manufacturing inputs, retail products and countless other goods across Canada. Although carriers may initially absorb some of the additional fuel expense, sustained increases ultimately place upward pressure on freight costs throughout the supply chain.

“We should not suggest that every increase in diesel immediately becomes a higher price for consumers,” Dulat said. “The trucking company often absorbs that pressure first. But businesses cannot absorb rapidly rising fuel costs indefinitely. If elevated prices continue, eventually some of those costs will move through freight rates and the broader supply chain.”

Long-haul and specialized trucking operations can face particularly significant exposure because tractors travel thousands of kilometres each week. Temperature-controlled operations can face additional fuel costs associated with operating refrigerated equipment.

Small carriers need particular attention

CTOA says the current situation reinforces recommendations recently submitted through its Budget 2026 Policy Brief, which calls for federal economic and transportation policies to better recognize the realities facing small carriers, owner-operators and growing fleets.

Among its recommendations, CTOA has called for:

Measures that help smaller carriers invest in fuel-efficiency, anti-idling, safety and operational technology,
Accelerated investment incentives for trucks, trailers and productivity-enhancing equipment,
A proposed Small Carrier Modernization Stream, providing cost-shared support for qualifying investments,
Transportation-specific support that recognizes indirect impacts from trade disruptions, reduced freight volumes, empty repositioning and equipment underutilization, and
Federal policy development that takes into account the limited working capital and administrative capacity of smaller transportation businesses.

CTOA believes these structural measures should remain part of the longer-term response while governments assess whether today’s exceptional energy-price conditions require more immediate assistance.

Targeted temporary relief should remain an option

If diesel prices remain at elevated levels, CTOA believes governments should be prepared to examine targeted and temporary relief for commercial transportation, particularly for small and mid-sized carriers.

Any intervention should be carefully designed to help maintain transportation capacity without unnecessarily distorting freight markets or creating long-term dependence.

“Canada needs a healthy and competitive trucking sector to keep its economy moving,” Dulat said. “We are asking governments to watch this situation closely. If elevated fuel prices become sustained rather than temporary, targeted relief for small and mid-sized commercial carriers should be on the table.”

CTOA will continue gathering feedback from carriers and owner-operators regarding the impact of fuel prices on operating costs, freight capacity and business viability.

About the Canada Truck Operators Association

The Canada Truck Operators Association represents small and mid-sized trucking companies, owner-operators, independent operators and professional drivers. CTOA advocates for road safety, responsible compliance, fair enforcement and practical transportation policies that strengthen Canada’s supply chain.

Media Contact
Jas Kaur, Canada Truck Operators Association
jas.kaur@thectoa.ca

TRUCKING-MUST-BE-PART-OF-CANADAS-TARIFF-RELIEF-PLAN-1280x1270.jpg

National association says freight-cost relief must reflect the sector that moves most of Canada’s domestic freight and is overwhelmingly made up of small businesses

TORONTO, ON / August 11, 2026: The Canada Truck Operators Association (CTOA) is welcoming the federal government’s new $100-million freight rebate program to support Canadian steel producers, while calling on Ottawa to ensure Canada’s trucking industry is included in future tariff-relief and supply-chain support measures.

The federal program will rebate 50% of eligible freight costs for Canadian steel products shipped between provinces and territories by rail or marine transportation.

CTOA supports federal action to help Canadian industries respond to U.S. tariff pressure and strengthen domestic supply chains. However, the association says the announcement raises an important policy question: if the goal is to make Canadian products more competitive and improve interprovincial trade, why is trucking not included?

“Trucking is a critical part of Canada’s domestic freight system,” said Tej Dulat, Director of Government and Public Affairs for CTOA. “As the federal government works to protect Canadian industries from tariff impacts and strengthen internal trade, trucking should be part of the national supply-chain response.”

According to federal industry data, domestic freight in Canada moves primarily by truck. The trucking sector is also overwhelmingly made up of small businesses. In 2025, 83.4% of truck transportation employer establishments had fewer than five employees.

CTOA says this matters because small and mid-sized trucking companies, owner-operators, and carriers are already facing serious economic pressures, including rising operating costs, insurance challenges, equipment costs, border uncertainty, and tariff-related impacts on the industries they serve.

“When steel, manufacturing, construction, agriculture, retail, and other sectors face cost pressure, trucking feels that pressure directly,” Dulat said. “Carriers do not operate outside the economy. They are part of every supply chain Ottawa is trying to protect.”

CTOA is not opposing support for rail or marine transportation. The association recognizes that all modes play an important role in Canada’s transportation network. However, CTOA says federal relief measures must reflect how goods actually move across the country, including first-mile, middle-mile, and final-mile transportation by truck.

“Rail and marine are important, but most supply chains still depend on trucks at some point,” Dulat said. “Leaving trucking out risks overlooking the small businesses that connect factories, warehouses, ports, rail yards, construction sites, farms, retailers, border crossings, and communities.”

CTOA is calling on the federal government to consult directly with the trucking sector as it implements current freight-relief programs and considers additional support for other tariff-affected sectors, including lumber and forestry..

The association is also urging Ottawa to consider targeted measures that support small and mid-sized carriers and owner-operators, including freight-cost relief, fuel-cost support, insurance-cost discussions, supply-chain resilience funding, and practical programs that recognize the role of trucking in interprovincial trade.

“Canada needs strong steel, strong manufacturing, strong rail, strong marine transportation, and strong trucking,” Dulat said. “A resilient Canadian economy depends on every part of the supply chain working together.”

CTOA says it will continue advocating for drivers, owner-operators, small and mid-sized carriers, brokers, dispatchers, safety professionals, and transportation businesses that keep Canada’s economy moving.

About CTOA

The Canada Truck Operators Association is a national transportation industry association representing drivers, owner-operators, small and mid-sized carriers, fleet owners, brokers, dispatchers, and transportation stakeholders. CTOA advocates for road safety, fair rules, practical compliance, supply-chain resilience, stronger communication with government, and policies that reflect the realities of Canada’s trucking industry.

Media Contact

Canada Truck Operators Association
Email: info@thectoa.ca
Website: www.thectoa.ca

The future of trucking will not be strengthened by reducing it to a single narrative. It will be strengthened by understanding the full picture. Because Canada’s supply chain does not run on policy papers alone.

It is 3:47 in the morning.

Somewhere on Highway 401, a truck driver is finishing his second coffee, checking his mirrors, and merging onto an empty highway. He left home before his children woke up. He will not be there when they go to bed tonight. Maybe not tomorrow night either.

He is not on television, He is not sitting on a government panel and nobody is quoting him in policy debates.

Yet without him, grocery store shelves do not stay stocked, factories do not receive parts, and businesses across Canada cannot operate.

Behind every policy discussion about trucking is a real person. A driver, an owner-operator, a small-business owner, a family trying to make a living in one of the most demanding industries in the country.

That is why Canada’s trucking policy debate needs a reset.

Because too much of the conversation is being conducted as though the industry has remained unchanged for the last fifteen years. It hasn’t, and that matters.

Fifteen years ago, most Canadians accepted that deliveries would take several days. E-commerce was a small part of retail activity. Few consumers expected real-time tracking. Very few expected groceries or household products delivered to their door within hours.

Today those expectations are routine, Consumers expect speed, Businesses expect precision and Supply chains operate in real time.

The transformation was driven by technology, changing consumer behaviour, and the rapid growth of digital commerce.

When Amazon changed how Canadians shop, it changed how freight moves. When Instacart changed how Canadians buy groceries, it changed supply chains and When food delivery platforms expanded, they created entirely new expectations around speed and convenience.

The trucking industry adapted to those changes. Dispatch systems became more sophisticated. Visibility requirements increased. Customers demanded tighter delivery windows and Freight markets became more competitive.

At the same time, operating costs continued to rise. Insurance and equipment costs increased. Regulatory requirements expanded and Labour shortages became more pronounced.

In many ways, trucking became the connective tissue of Canada’s modern economy.

Yet much of the public discussion still relies on assumptions and policy frameworks developed for a very different era. Bad diagnoses often lead to bad policy.

If we want effective transportation policy, we must begin with an accurate understanding of the industry as it exists today. Too often, people talk about trucking without talking about the people who keep it moving.

Carriers, Owner-operators, Fleets, Classifications.

But behind those terms are people.

An owner-operator is often someone who spent years saving for a down payment on a truck. Someone who took a financial risk believing that hard work and determination could build something meaningful. Someone who gets up before most Canadians are awake because their name is on the truck and their reputation is attached to every delivery.

Many of these entrepreneurs are newcomers to Canada.

For decades, trucking has been one of the most accessible pathways to entrepreneurship in this country. Many drivers arrived in Canada with little more than ambition and a willingness to work. They built businesses and created jobs, They bought homes and contributed to their communities.

Their stories deserve to be part of the conversation too.

One of the biggest misconceptions about trucking is that it is dominated by large corporations.

The reality is very different.

According to recent government data, more than 83 per cent of trucking establishments employ fewer than five people. Behind many company names is not a corporate boardroom. It is a family business. A husband-and-wife operation, A first-generation entrepreneur. A small fleet trying to survive through freight downturns, rising insurance costs, increasing operating expenses, and intense competition.

These businesses form the backbone of Canada’s trucking sector. Their experiences deserve to be heard when policies affecting the industry are being developed.

There is another side of trucking that receives far less attention.

Mental health.

Truck driving can be one of the loneliest professions in Canada. Drivers spend days and sometimes weeks away from home. They work through difficult weather conditions. They face financial uncertainty. They carry enormous responsibility every time they get behind the wheel.

When freight rates decline, When equipment breaks down. When business costs rise and when personal challenges emerge.

Many drivers face those pressures alone.

Loneliness, financial stress, and long periods away from family are realities that cannot be measured on a balance sheet, but they have very real consequences.

As Canada continues to have important conversations about workplace wellness and mental health, trucking should not be left out of that discussion.

Mental health is not separate from safety. Mental health is not separate from performance and mental health is not separate from sustainability.

They are all connected.

Acknowledging the realities of trucking should never be confused with lowering expectations. Safety must remain non-negotiable. The overwhelming majority of professional drivers understand this better than anyone.

Every day they operate equipment weighing tens of thousands of kilograms while sharing the road with families and communities. They understand the consequences of mistakes.

Most carriers invest heavily in training, maintenance, compliance programs, and safety systems because they understand what is at stake.

Accidents cost lives, accidents damage businesses, add to insurance costs and ratings and Accidents affect entire communities.

The challenge for policymakers is not choosing between safety and sustainability.

The challenge is ensuring both.

At CTOA, we have made safety, compliance, mental health awareness, and professional development key priorities. Through industry events, training sessions, and stakeholder engagement, we continue to encourage practical solutions that improve safety outcomes while supporting the long-term sustainability of the sector. In recent months, CTOA has brought together drivers, owner-operators, fleet owners, law enforcement, insurers, safety professionals, and industry experts in Montréal and Brampton to discuss practical solutions around safety, compliance, cargo theft prevention, driver well-being, and the future of the industry.

The trucking industry of 2040 will not look like the trucking industry of today.

Artificial intelligence is already transforming route planning, fleet management, predictive maintenance, compliance monitoring, and logistics operations.

Automation will continue to evolve. Electric vehicle technologies will expand and Data-driven decision-making will become standard.

Many of today’s drivers may be the last generation to experience trucking exactly as we know it.

The question is not whether change is coming, The question is whether we are preparing people for it.

The workforce is aging and experienced drivers are retiring.

Fewer young Canadians are entering the profession. The lifestyle is demanding and the public perception is often negative.

The uncertainty can be significant.

If Canada wants a strong supply chain twenty years from now, we need to make trucking a profession that attracts the next generation.

That means supporting entrepreneurship. That means investing in mental health. That means embracing technology and that means creating fair and sustainable opportunities for both drivers and businesses.

Most importantly, it means listening to the people who do the work every day. There are legitimate concerns within the trucking industry.

Issues related to labour standards, safety, compliance, and enforcement deserve attention. Companies that break the law should be held accountable.

Drivers deserve fair treatment, The public deserves safe roads.

None of that is controversial.

But meaningful solutions require a complete understanding of the industry. Policy discussions should include drivers, owner-operators, carriers, brokers, shippers, labour representatives, insurers, safety experts, training providers, and regulators.

No single organization or stakeholder group can fully represent an industry as diverse and complex as trucking.

The future of trucking will not be strengthened by reducing it to a single narrative. It will be strengthened by understanding the full picture.

Because Canada’s supply chain does not run on policy papers alone.

It runs on diesel, data, determination, and the decisions of people who are rarely in the room when those decisions are made about them.

The future of trucking will not be built solely in boardrooms, committee hearings, or government offices. It will be built by listening to the people who live these realities every day. The people who keep Canada moving deserve more than to be talked about.

They deserve to be heard.

Tej Dulat is Director of Government & Public Affairs for the Canada Truck Operators Association (CTOA). CTOA represents drivers, owner-operators, small and mid-sized carriers, brokers, and industry partners across Canada and advocates for safety, professionalism, fair competition, and practical solutions that strengthen Canada’s trucking industry and supply chain.

CTOA noted that a coordinated approach across federal and provincial governments could further enhance the effectiveness of recent measures.

MISSISSAUGA, ON / April 14/ : The Canadian Truck Operators Association (CTOA) welcomes the federal government’s announcement to temporarily suspend the federal fuel excise tax on diesel and gasoline, calling the measure a constructive and timely step that will provide short-term relief to trucking operators facing renewed fuel cost pressures.

The federal government has indicated that the temporary measure will take effect on April 20 and remain in place until September 7, 2026. The suspension is expected to reduce diesel prices by approximately 4 cents per litre and is intended to help lower operating costs for truckers and businesses across key sectors of the economy.

CTOA raised concerns on March 30 regarding rising diesel prices, exceeding $2.39 per litre in parts of the Greater Toronto Area, and the impact on small carriers and independent operators still recovering from a prolonged freight slowdown between 2022 and 2025.

“We are encouraged to see this announcement align with concerns raised by trucking operators and industry stakeholders in recent weeks,” said Tej Dulat, spokesperson for CTOA. “CTOA has been actively highlighting the impact of rising fuel costs on small carriers, and this decision represents a constructive step toward addressing those pressures.”

“For many small carriers and owner-operators, every cent matters. This measure will provide meaningful short-term relief and signals that government recognizes the challenges facing an essential industry that keeps Canada’s economy and supply chains moving.”

Relief Comes Amid Fragile Recovery

While the measure is expected to provide immediate cost relief, CTOA emphasizes that many operators remain in a fragile recovery phase following several years of, Weak freight rates, Excess capacity, Rising insurance and maintenance costs

For smaller operators in particular, limited financial reserves and ongoing cost pressures continue to impact day-to-day operations.

“This is a positive and responsible step,” Dulat added. At the same time, many smaller operators are still stabilizing after several difficult years. We see this as an important first measure, and we look forward to continued engagement with government on practical ways to support sector stability.”

Ensuring Effective Impact

CTOA also noted that the effectiveness of the measure will depend on how efficiently fuel cost reductions are reflected across the supply chain.

To maximize the impact of this decision, it will be important that fuel cost reductions are clearly reflected at the pump so that operators and consumers can fully benefit, Dulat said.

Coordinated Approach Across Jurisdictions

CTOA noted that a coordinated approach across federal and provincial governments could further enhance the effectiveness of recent measures.

“We welcome the federal government’s leadership on this issue,” Dulat said. There may be an opportunity for provinces to consider similar short-term measures within their jurisdictions to further support small carriers and ensure more consistent relief across the country.”

Continued Focus on Industry Stability

CTOA is encouraging continued dialogue on additional targeted measures that can support small carriers and owner-operators, including:

Review and modernization of fuel surcharge mechanisms
Improved access to short-term working capital
Industry-government roundtable on trucking sector stability

“This is not about long-term subsidies,” Dulat said. It is about ensuring that small operators have the ability to remain stable and competitive during periods of cost volatility.”

Broader Economic Importance

Canada’s trucking sector plays a central role in the movement of goods across the country. Cost pressures in transportation can have broader impacts on supply chains, business costs, and affordability for consumers. CTOA will continue to monitor developments and engage constructively with policymakers and industry stakeholders to support a stable, resilient, and competitive trucking sector.

Media Contact

Canadian Truck Operators Association (CTOA)
📧 info@thectoa.ca
🌐 www.thectoa.ca

CTOA warns rising diesel prices, now exceeding $2.39 per litre in Toronto, are adding pressure to small carriers and independent operators already recovering from a prolonged industry downturn

MISSISSAUGA, ON, March 30, 2026: The Canadian Truck Operators Association (CTOA) is raising concerns over rising diesel prices, warning that increasing fuel costs are placing renewed pressure on a trucking industry that is still in the early stages of recovery following a prolonged slowdown from 2022 through 2025.

Recent increases in global oil prices, driven by escalating geopolitical tensions in the Middle East affecting key energy supply routes, are beginning to translate into higher diesel costs across Canada. For the trucking sector, where fuel remains one of the largest operating expenses, this trend is creating immediate financial strain, particularly for small and mid-sized carriers.

Diesel prices in major markets such as the Greater Toronto Area have recently exceeded $2.39 per litre, levels not seen since 2022. For many operators, this represents a significant increase in day-to-day operating costs.

While larger carriers may have mechanisms to manage fuel volatility, smaller fleets and independent operators often have limited ability to pass on sudden cost increases, creating immediate pressure on margins and cash flow.

“Canada’s trucking industry has gone through several difficult years, and many carriers are only now beginning to stabilize,” said Tej Dulat, spokesperson for CTOA. “A sudden increase in fuel costs at this stage creates real pressure for businesses that are already operating on thin margins. This is not about avoiding normal market cycles, it is about recognizing the impact of external cost shocks on an essential industry.”

A Fragile Recovery at Risk

The current increase in diesel prices comes at a sensitive time for the industry.

Between 2022 and 2025, Canadian trucking experienced a prolonged period of weak freight rates, excess capacity, and rising operational costs. Many small carriers and owner-operators managed this period by reducing expenses, deferring investments, and operating with minimal financial reserves.

While early signs of stabilization have begun to emerge in 2026, the recovery remains uneven. Rising fuel costs now risk slowing that recovery, particularly for operators with limited ability to absorb additional cost increases.

The View from the Ground

“I run four trucks out of the GTA. Fuel has gone from about $1,600 to $2,300 per truck, that’s a $700 increase every fill. I am transporting essential goods and can’t stop operating, but after three difficult years, there is very little left to absorb these costs. My line of credit is already stretched.”
Jagroop, CTOA member, Greater Toronto Area

“I have been operating for 14 years, and have never seen two pressures hit at the same time like this. After years of low freight rates, diesel is now above $2.40 with no clear timeline for relief. This goes beyond normal market conditions, it is a situation operators cannot plan for or control.
Singh, CTOA member, Hamilton

Broader Supply Chain Impact

The impact of rising diesel prices extends beyond the trucking industry. Trucking plays a central role in Canada’s economy, with the majority of goods transported by truck at some stage of the supply chain. As transportation costs increase, those costs can flow through to businesses and consumers in the form of higher prices for goods and services.

Fuel volatility therefore has implications not only for carriers, but for overall supply chain stability and affordability.

CTOA Encourages Consideration of Targeted Measures

CTOA is encouraging the Government of Canada and the Government of Ontario to consider practical, short-term measures to support industry stability during periods of fuel volatility:

Temporary diesel tax relief for commercial carriers
Targeted bridge financing access for small carriers and owner-operators
Review and update of fuel surcharge mechanisms
Industry-government roundtable on trucking sector stability
Short-term flexibility in compliance implementation for small carriers

CTOA emphasizes that the industry is not seeking long-term subsidies, but targeted, short-term support to help stabilize an essential sector during a period of exceptional cost volatility.

Looking Ahead

CTOA will continue to monitor developments and engage with industry stakeholders to assess the impact of rising fuel costs across regions and business segments.

The association remains focused on supporting a stable, resilient trucking sector that can continue to meet the needs of Canada’s economy and supply chains.

After two years of oversupply and compressed margins, Q1 2026 shows early evidence of a tighter, more disciplined carrier base. The next 18 months will reward carriers who manage capital carefully, adapt to regulatory change, and monitor a set of converging trade, infrastructure, and workforce pressures that are reshaping the industry’s operating environment.

Section I: Current Market Conditions

The excess capacity that weighed on Canadian freight markets through 2024 and into 2025 is beginning to clear. This is not a demand-driven recovery, it reflects the exit of smaller, undercapitalized carriers who were unable to absorb sustained cost increases across insurance, fuel, financing, and maintenance.

The result is a leaner industry than existed two years ago. The remaining carrier base is, on balance, better capitalized and more operationally disciplined. That shift is beginning to reflect in spot rates, which have stabilized and shown early signs of a modest recovery in several key corridors.

4-6%

SPOT RATE RECOVERY

Year-over-year rate improvement in key Canadian corridors as of Q1 2026, per industry analyst consensus. Recovery remains uneven across sectors and regions.

10-15%

CAPACITY SHORTFALL

Driver vacancy rate reported by a segment of CTOA member carriers in early 2026, adding a structural supply constraint alongside equipment-side contraction.

The persistent challenge is what analysts call a cost-revenue squeeze: Operating expenses, particularly insurance premiums and maintenance labour, continue to rise faster than freight rates. Carriers that have survived this cycle are those who controlled variable costs aggressively. That discipline will remain a competitive differentiator through 2027.

Market Signals – Q1 2026

Operating authority cancellations have accelerated as smaller fleets exit under sustained margin pressure.
Spot rates stabilizing, modest early recovery in Toronto-Montreal and Toronto-Calgary corridors.
Used equipment demand rising as new truck pre-purchases begin to build ahead of 2027 regulatory changes.
Insurance premiums remain elevated, cargo theft is contributing materially to claims costs in the GTA/Peel corridor.
11000 plus transport driver positions were vacant in Canada as of Statistics Canada Q3 2025 – a structural, not cyclical, shortage.

Section II – Two Developments to Watch in 2026

Two distinct developments will materially affect Canadian freight flows this year. Both carry meaningful uncertainty and warrant closer attention from carriers than they have received so far.

The Gordie Howe International Bridge

Canada’s most significant trade infrastructure investment in decades is approaching its opening. Construction of the Windsor-Detroit crossing is complete. As of March 2026, the bridge is in its testing and commissioning phase, with toll rates officially announced on March 11. Commercial vehicle tolls are set at US$8.75 / CA$12 per axle, materially lower than the Ambassador Bridge’s current rate of US$20 per axle. The U.S. Department of Homeland Security formally designated the crossing as a Class A port of entry effective March 2, 2026.

No firm opening date has been confirmed as of the publication of this report. The Windsor-Detroit Bridge Authority has indicated a spring 2026 target, contingent on completion of quality reviews and readiness of border agencies on both sides.

Political Risk – Monitor Closely

In February 2026, U.S. President Donald Trump raised concerns regarding the bridge’s toll structure and construction materials. Canadian officials, including Prime Minister Carney, addressed these claims directly. The threat has not been formally withdrawn. Members with significant Windsor-Detroit exposure should monitor this situation before building the new crossing into routing and scheduling plans. CTOA will issue an advisory when an opening date is confirmed.

If and when the bridge opens on the currently projected timeline, carriers can reasonably expect: reduced congestion at the Ambassador Bridge, more predictable border processing times, a competitive toll environment, and a direct Highway 401 to Interstate 75 connection that eliminates the current city-street routing on the Canadian side.

“About US$250 billion in goods cross the Detroit-Windsor corridor annually. CBP projects the new bridge will reduce average crossing times by up to 30 percent once fully operational.” “U.S. Customs and Border Protection, Federal Register, January 2026″

The CUSMA/USMCA Joint Review – July 1, 2026

The mandatory six-year review of the Canada-United States-Mexico Agreement begins July 1, 2026. This is a structured joint review, not a formal renegotiation. The agreement does not expire or automatically change on that date; if parties do not agree to extend it, the process shifts to annual reviews. The agreement remains in force throughout.

That said, the current U.S. administration has signalled it intends to use this review to seek material changes, and the broader trade environment, including the 25% tariffs imposed on Canada in early 2025 and subsequent partial relief, underscores that cross-border freight operators are navigating genuine policy volatility. The tariff situation has shifted multiple times in 2025 and 2026; members with cross-border exposure should verify their specific commodity’s current tariff status with a customs broker rather than relying on any fixed figures.

July 1

CUSMA Review Begins

Mandatory six-year joint review. Agreement remains in force. Outcome uncertain under current U.S. administration.

Rules of Origin

Key Compliance Area

Auto parts and steel classifications will face the most scrutiny. Review your commodity compliance before July.

~$250B+

Annual Corridor Value

The Windsor–Detroit corridor is a critical trade gateway, within over $1.3 trillion in annual Canada–U.S. trade.

Cross-border fleets should use the period between now and July to review rules of origin compliance, particularly for automotive components and steel products, and to strengthen customs documentation practices. This is preparation, not alarm.

Section III – The 2027 Emissions Transition

The most significant equipment cost event in years is approaching. The U.S. EPA’s 2027 greenhouse gas and low-NOx standards for heavy-duty vehicles will drive a step change in new truck pricing. Because North American original equipment manufacturers produce to a single continental standard, Canadian carriers purchasing Class 8 trucks will face the same cost increase as their U.S. counterparts.

Current industry estimates, from CDK Global and truck manufacturer guidance, project new 2027-compliant trucks at approximately $20,000–$25,000 more per unit than equivalent 2026 models, primarily due to more complex aftertreatment systems. These systems also carry meaningful maintenance implications during their early years in service.

What Members Need to Know – 2027 Emissions Rule

The rule is a U.S. EPA rule: Canada’s Heavy-Duty Vehicle GHG Regulations run in parallel but on a separate schedule, verify with your dealer what applies to your fleet
The EPA signaled in early 2026 that a revised proposal is expected in spring 2026, which could reduce per-unit cost impact while maintaining the 2027 start date
Members should avoid locking in large pre-buy orders until the revised rule is finalized (expected Q2/Q3 2026), as cost structures may change
The pre-buy cycle (rush to purchase 2026-spec trucks before Q4) is real, but early movers risk buying ahead of potential regulatory adjustments
Used equipment values are expected to rise as demand for 2026-spec diesel trucks increases, relevant for fleets considering disposals this year

The practical planning recommendation is clear: evaluate your fleet replacement schedule now, but avoid reactive purchasing before the revised EPA rule is published. The window for informed decision-making is approximately Q2 2026.

Section IV – Regulatory & Workforce Pressures

Tax Compliance – T4A Enforcement Is Live

The CRA’s moratorium on T4A penalties for independent contractors in the trucking sector has ended. The reporting deadline for the 2025 tax year, T4A Box 048 for fees paid to Canadian Controlled Private Corporations over $500, passed on Feb 28th, 2026 (March 2, 2026). Enforcement is active. This is not a future concern, it is the current operating reality.

CTOA’s position has been consistent: comply with reporting requirements, and expect CTOA to ensure enforcement is applied fairly & consistently. If you received a compliance notice and have not yet responded, contact info@thectoa.ca immediately.

Workforce – A Structural Shortage, Not a Cyclical One

Statistics Canada reported 11000 plus vacant transport truck driver positions in Q3 2025. Multiple CTOA member carriers report current vacancy rates of 10% to 15%. This is not a short-term matching problem, it reflects an aging driver demographic, insufficient domestic training pipeline, and in CTOA’s assessment, retention barriers including discriminatory treatment and online hostility toward racialized and newcomer drivers that is driving experienced workers out of the industry.

Immigration pathways remain a material component of driver supply. Members relying on workers through temporary permit programs should verify current Express Entry draw categories for transport occupations directly with an immigration lawyer or through IRCC, as program criteria and draw schedules evolve regularly. CTOA will share updates as IRCC confirms 2026 draw schedules.

Cargo Theft – A Growing Operational and Financial Risk

North American cargo theft losses reached an estimated $725 million in 2025, with hundreds of documented incidents in Canada and the United States in Q3 2025 alone. Criminal networks have adopted more sophisticated methods, including fictitious carrier identities and fraudulent load authorizations. The GTA and Peel Region represent a disproportionate concentration of incidents.

CTOA launched a national freight security initiative in March 2026 to address this through real-time information sharing, and coordinated engagement with law enforcement. The initiative is operational and member participation is open. Contact info@thectoa.ca for details.

Section V – Strategic Priorities for 2026

The following recommendations reflect current market and regulatory conditions. They are intended as a framework for decision-making, not a prescriptive plan.

Evaluate Fleet Replacement Timelines –

But Wait on Large Orders

Know your replacement schedule. Do not commit to large pre-buy orders before the EPA publishes its revised 2027 rule in Q2/Q3 2026. Monitor the market carefully through summer.

Prepare for the Windsor-Detroit Corridor Shift

Once the Gordie Howe Bridge opens, toll competition and routing changes will affect lane economics. Build familiarity with the new crossing now.

Review Cross-Border Compliance Before July 1

Audit rules of origin documentation. Engage a customs broker if needed. Do not wait for the CUSMA review to trigger action.

Strengthen Cargo Security Protocols

Implement two-step verification for load releases. Join CTOA’s freight security initiative to reduce risk and insurance exposure.

Protect Margins Through Cost Discipline

Focus on insurance, fuel efficiency, and maintenance optimization. Benchmark against peers in your operating corridor.

Engage With CTOA’s Policy Work

Policy changes around independent driver classification and enforcement are underway. Member participation ensures your voice is represented.

CTOA Outlook :- 2026–2027

The conditions ahead do not reward the fastest or the largest. They reward carriers who manage their balance sheets carefully, anticipate regulatory change before it becomes a crisis, and operate with the discipline that the last two years of margin pressure have, of necessity, installed.

The carriers who exit 2027 in a stronger position than they entered 2026 will be those who used this transition period to prepare, not those who moved reactively once the environment shifted.

CTOA will continue to monitor and report on each of these files as they develop. The Gordie Howe Bridge opening, the EPA revised rule, and the CUSMA review are all active situations. Members should expect direct updates from CTOA as material developments occur.

Editorial note: This report synthesizes publicly available market data, regulatory filings, and CTOA’s direct advocacy experience. Where forward projections are cited, they represent the current consensus of industry analysts and may evolve as new information emerges, including the U.S. EPA’s forthcoming revised emissions rule expected in Q2/Q3 2026. Members should verify time-sensitive regulatory and tariff details directly with their advisors before making capital commitments.

OTTAWA, ON, Feb. 23, 2026, The Canada Trucking Operators Association (CTOA) is raising awareness about mounting pressures in Canada’s long haul trucking sector, as member carriers report driver shortages that could affect supply chain reliability in the months ahead.

Member fleets, brokers report that some carriers are operating with up to a 15 percent shortfall in driver capacity. Few industry leaders say it is becoming harder to recruit and retain qualified long haul drivers, increasing the risk of service disruptions and higher logistics costs. In Q3 2025, Statistics Canada reported 11,600 vacant positions for transport truck drivers, underscoring the need for sustained workforce solutions.

Workforce Under Pressure: Racism, Discrimination, and Driver Retention

CTOA has received reports from racialized and newcomer drivers and fleet owners of increased racism, including discriminatory remarks, online hostility, and concerns that administrative enforcement and compliance activity may be applied unevenly or perceived as targeting individuals based on race or newcomer status.

New Canadian drivers make up a significant part of Canada’s trucking workforce and help maintain supply chain continuity. Reports of hate messages, targeted rhetoric on social media, unfair public scrutiny, and perceived unequal enforcement are creating concern within the industry. These pressures can discourage people from entering the sector and contribute to drivers leaving the industry, worsening workforce shortages.

CTOA affirms that no one keeping Canada’s supply chain moving should face racism or hostility for doing their job. The Association is calling for a national, solutions focused effort that promotes respect, professionalism, and dignity for transportation workers across Canada, including clear expectations for fair and consistent treatment in administrative and compliance processes.

Broader Supply Chain Impact

If current workforce pressures persist, driver shortages are likely to deepen. That will strain the movement of food and other essential goods, reduce reliability in long haul logistics, and increase delivery costs across the economy. Those costs ultimately show up in higher prices for Canadians and greater uncertainty for businesses that depend on timely freight.

“If we keep losing drivers, the impact will be felt everywhere,” said Tej Dulat, CTOA. “Food and essential goods do not move without a stable workforce. When capacity tightens, costs rise and Canadians pay the price. Protecting the supply chain means retaining experienced drivers, ensuring fair compensation, and fostering a professional environment where every driver is treated with respect, dignity, and free from racism or harassment.”

A Call for Collaboration

CTOA is calling on the federal government, working with provinces and industry, to:

Investigate systemic and targeted racism affecting racialized and newcomer drivers, including reported concerns about uneven or biased administrative and compliance treatment, and the impacts on retention
Promote respect for transportation professionals, with zero tolerance for racism and harassment
Ensure compliance and enforcement processes are clear, consistent, and fair, with practical requirements that do not create perceptions of uneven treatment
Provide clear, consistent guidance for incorporated drivers and owner operators so legitimate small operators can enter and remain in the sector without uncertainty

Canada’s trucking industry remains resilient, but resilience requires stable policy, professional respect, and coordinated action to keep goods moving and costs under control for Canadians.

About CTOA

The Canada Trucking Operators Association (CTOA) advocates for the safety, sustainability, and prosperity of Canada’s transportation professionals and the supply chain they support.

The Canada Truck Operators Association (CTOA) acknowledges the Canada Revenue Agency’s (CRA)

announcement lifting the moratorium on T4A penalties for the 2025 tax year and beyond.

Compliance and proper reporting are essential to maintaining a fair and competitive trucking industry.

We support transparency and the principle that all businesses should meet their tax obligations.

CTOA members are committed to meeting reporting requirements. However, many small carriers and

independent operators will require time, clarity, and structured guidance to integrate the new T4A

processes into their operations. To date, operators have received limited information about how drivers,

contractors, and businesses will be supported or educated prior to enforcement, creating uncertainty

during an already challenging economic period.

This announcement highlights the need for clear guidance, education, and a realistic transition approach

for the thousands of small and mid-sized carriers across Canada. For years, these businesses have

operated under inconsistent interpretations from both CRA and ESDC, often relying on accountants,

advisors, and previous CRA guidance when making classification decisions.

CTOA urges CRA to ensure:

A reasonable transition period so carriers can adjust systems and reporting obligations
Clear, accessible, and timely guidance, especially for small and newcomer-owned businesses
Avoidance of regional stereotypes, which unfairly stigmatize the Greater Toronto Area. one of Canada’s largest freight hubs and a critical engine of the national supply chain
Consistency between CRA and ESDC, to prevent conflicting interpretations and unintended penalties.
Direct outreach and communication to incorporated drivers, ensuring they understand their rights, obligations, and available supports.
Regular engagement with industry stakeholders throughout the rollout and implementation period

The trucking industry moves the Canadian economy. Compliance measures must be implemented in a

manner that strengthens, not destabilizes, the supply chain, particularly during a period of economic

pressure and U.S.-driven trade disruptions.

CTOA looks forward to working with government, industry partners, and the broader supply chain to

ensure fair, balanced, and practical implementation of these new requirements.

Canada Truck Operators Association (CTOA)

About CTOA

CTOA represents the full spectrum of Canada’s trucking workforce, independent drivers, owner-operators, and small,

medium, and large fleets across multiple provinces. Our membership reflects the modern Canadian trucking industry:

diverse, inclusive, and built on professionals from every corner of the sector.

CTOA - CTOA - Canada Truck Operators Association

Rising Diesel Prices Put New Pressure on Small and Mid-Sized Trucking Businesses, CTOA Warns

CTOA: Tariff Relief Must Include Trucking if Ottawa Wants Stronger Domestic Supply Chains

Canada’s Trucking Policy Debate Is Stuck in the Past

CTOA Welcomes Federal Fuel Tax Suspension and Encourages Continued Support for Small Carriers

Relief Comes Amid Fragile Recovery

Ensuring Effective Impact

Coordinated Approach Across Jurisdictions

Continued Focus on Industry Stability

Broader Economic Importance

Media Contact

Canada’s Trucking Industry Faces a Double Crisis: Prolonged Freight Slowdown Followed by Rising Diesel Costs

Canada’s Freight Market Is Entering a Period of Structural Change

Section I: Current Market Conditions

Section II – Two Developments to Watch in 2026

The Gordie Howe International Bridge

The CUSMA/USMCA Joint Review – July 1, 2026

July 1

Rules of Origin

~$250B+

What Members Need to Know – 2027 Emissions Rule

Section V – Strategic Priorities for 2026

Evaluate Fleet Replacement Timelines –

But Wait on Large Orders

Prepare for the Windsor-Detroit Corridor Shift

Review Cross-Border Compliance Before July 1

Strengthen Cargo Security Protocols

Protect Margins Through Cost Discipline

Engage With CTOA’s Policy Work

CTOA Outlook :- 2026–2027

CTOA Highlights Growing Driver Shortage and Calls for Collaborative Action to Protect Canada’s Supply Chain

CTOA Statement on CRA Announcement Regarding T4A Enforcement in the Trucking Sector

Rising Diesel Prices Put New Pressure on Small and Mid-Sized Trucking Businesses, CTOA Warns

CTOA: With No Canada–U.S. Deal, Small Carriers and Owner-Operators Must Not Be Left Absorbing the Fallout

CTOA: Tariff Relief Must Include Trucking if Ottawa Wants Stronger Domestic Supply Chains

Rising Diesel Prices Put New Pressure on Small and Mid-Sized Trucking Businesses, CTOA Warns

CTOA: With No Canada–U.S. Deal, Small Carriers and Owner-Operators Must Not Be Left Absorbing the Fallout