trucking industry

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.

This is not just a trucking issue, it is a national supply chain and economic security issue that requires coordinated action

Mississauga, ON (March 17) : The Canadian Truck Operators Association (CTOA) is planning to launch a national freight security initiative aimed at addressing the growing problem of cargo, trailer, and equipment theft across Canada.

Cargo theft has become an increasingly serious threat to trucking companies, freight brokers, shippers, insurers, and the broader Canadian supply chain. According to industry estimates and cargo security reports, cargo theft across North America has escalated significantly, with losses reaching approximately $725 million in 2025, representing a sharp increase from previous years.

With over 70% of Canada’s domestic freight moved by trucks, rising cargo theft is not just an industry concern, it is a growing supply chain security issue that can impact businesses, consumers, and economic stability across the country.

Canadian law enforcement and industry stakeholders have also reported increasing theft activity in key logistics regions, particularly in major freight corridors such as the Greater Toronto Area and Peel Region, where hundreds of incidents have been recorded in recent years.

Organized criminal networks are increasingly targeting high-value shipments using sophisticated tactics such as fraudulent carrier identities, fictitious pickups, and coordinated cargo theft operations. These developments reflect a growing concern that cargo theft is evolving into a more organized and systemic challenge affecting the transportation sector.

In response, CTOA has begun facilitating information sharing among its members regarding theft incidents, suspicious activities, and emerging patterns, helping carriers and drivers respond more quickly to potential threats.

Building on these efforts, CTOA is engaging with industry stakeholders, law enforcement agencies, insurers, technology providers, and government bodies as it prepares to develop a national information-sharing and coordination framework aimed at preventing cargo theft and improving recovery of stolen freight and equipment.

“Freight and trailer theft is no longer an isolated issue affecting a few companies, it is becoming a broader supply chain security challenge,” said Tej Dulat, CTOA. “CTOA has started working with our members to share information and raise awareness, and we are preparing to help lead a coordinated effort with industry partners, law enforcement, and policymakers to address this problem.”

“This is not just a trucking issue, it is a national supply chain and economic security issue that requires coordinated action,” Dulat added.

As part of the proposed initiative, CTOA is exploring several practical measures:

Improving real-time information sharing between trucking companies, brokers, insurers, and law enforcement
Developing an industry alert system to notify fleets and professional drivers of stolen freight, suspicious pickups, and emerging threats
Strengthening collaboration with federal, provincial, and municipal authorities on cargo theft investigations and enforcement
Promoting security awareness and prevention training for fleets, drivers, dispatchers, brokers, and warehouse personnel
Encouraging more consistent reporting and improved data collection related to cargo theft incidents

CTOA believes that stronger coordination between industry participants and public authorities can significantly improve both prevention and recovery efforts.

“Canada’s economy depends on a secure and reliable trucking network,” Dulat said. “By working together and sharing information more effectively, the industry and government can take meaningful steps to protect freight, strengthen supply chains, and reduce the impact of organized cargo theft.”

CTOA is committed to playing a leadership role in bringing together industry and public stakeholders to address this growing challenge and will be engaging partners in the coming weeks as it advances this initiative.

Media contact: To request comment or information from CTOA, Please email info@thectoa.ca

Source: Based on the Canada Revenue Agency (CRA) Webinar: “Reporting fees for service transactions in the trucking industry” (January 28, 2026)

This document summarizes the key information and official responses from the CRA regarding the reporting requirements for fees for service (RFS) in the trucking industry. It is designed to help CTOA members understand their obligations and avoid potential penalties.

Important Note: The CRA has lifted the moratorium on penalties for non-compliance. For the 2025 and later calendar years, penalties will be applied for failures to report fees for service correctly.

For the most authoritative and up-to-date information, always refer to: Canada.ca/trucking-taxes and Canada.ca/trucking-payments.

Do These Rules Apply to My Business? (Scope & Applicability)

Q: How do I know if my business is considered to be in the “trucking industry” for these rules?
A: Your business is considered to be operating in the trucking industry if your primary source of income comes from “trucking activities.”

“Primary source” means more than 50% of your gross business revenue (not net income) comes from these activities.
You must review all your business’ income-earning activities, not just those done by owner/operators.

Q: What counts as a “trucking activity”? What does not?
A: The distinction is critical.

Applicable Trucking Activities (Count toward the 50% threshold):
- For-hire trucking (e.g., long-haul, local delivery)
- Acting as a freight broker (intermediary between shippers and carriers)
- Providing trucking services through owner/operators
Non-Applicable Trucking Activities (Do NOT count toward the 50% threshold):
- Moving company services: Packing, unpacking, warehousing, handling, storage, and crating.
- Maintenance and repairs on trucks.
- Renting or leasing trucks or trailers to others.
- Courier and messenger services (except those integral to trucking).

Q: My company is a customs broker that also offers transportation brokerage. Transportation is about 40% of our revenue. Do we need to issue T4As to the trucking companies we hire?
A: Yes. If your primary source of income is not trucking, the general T4A reporting rule still applies (you must report payments over $500 for services). However, the specific lift of the moratorium on penalties only applies to businesses in the trucking industry. Since freight brokerage is an applicable trucking activity, if your transportation revenue is more than 50% of your gross revenue, you are in the trucking industry and will face penalties for non-compliance. If it is less than 50%, you are not considered in the industry but must still issue T4As (though the penalty moratorium technically doesn’t apply to you).

To Whom Must I Issue a T4A? (Recipients & Recipient Types)

Q: Do I only have to issue T4As to individual owner/operators?
A: No. The requirement applies to payments made to any type of business, including:

Sole proprietors (individuals)
Partnerships
Corporations (Limited or Incorporated)
Trusts

If you pay a corporation (CCPC) in the trucking industry over $500, you must report it in Box 048 of the T4A. This is the main change leading to the penalty lift.

Q: I broker loads to a factoring company. Who gets the T4A?
A: You issue the T4A to the trucking company/service provider that performed the work, not the factoring company. Your contract for the service is with the trucking company, and the factoring company is simply a third party that purchased their invoice.

Q: Do we need to issue T4As for small, occasional payments, like to someone who cleans the office?
A: Only if the total payments to that person or company for the calendar year exceed $500. If the total is under $500 and you did not withhold any tax, you do not need to issue a T4A.

Q: Do we need to issue T4As to interline carriers?
A: Yes. Interline arrangements are payments for services between carriers. If the interline carrier’s primary source of income is trucking, they are in the industry, and the payment must be reported.

Q: Do we need to issue a T4A to a non-resident trucking company?
A: Generally, no. Payments to non-residents for services provided in Canada are reported on a T4A-NR slip, not a standard T4A. Payments for passive income (like interest) to non-residents go on an NR4 slip. The tax residency of the corporation you contract with determines which form to use.

How to Fill Out the T4A Slip Correctly

Q: Do we report the gross amount or the net amount after deductions (like fuel, insurance, etc.)?
A: You must report the gross amount of fees for services paid in the year in Box 048. Do not deduct anything.

Q: Should the amount on the T4A include GST/HST?
A: No. Do not include GST/HST or PST in the amount reported in Box 048.

Q: How do we report payments made in US dollars?
A: You must convert the payment to Canadian dollars using the Bank of Canada exchange rate on the payment date. Other verifiable same-day rates may be accepted.

Q: Do we report amounts based on when the invoice was received or when it was paid?
A: You report based on when the amount was paid. If you receive an invoice in December 2025 but pay it in January 2026, that payment is reported on the 2026 T4A.

Q: What identifying information do we need from the recipient?
A:

For a business (sole proprietor, partnership, corporation), you must enter their Business Number (BN) in Box 013. (e.g., 123456789RT0001).
The GST/HST number is the “RT” program account extension of the nine-digit Business Number (e.g., 123456789RT0001).

Q: What if I ask a subcontractor for their Business Number but they don’t provide it?
A: You are still required to issue the T4A slip with the information you have. You must also document your reasonable efforts to obtain the number to avoid penalties. If filing electronically, the CRA allows you to use a placeholder BN (e.g., 000000000RC0000) when the recipient fails to provide one.

Filing, Deadlines, and Penalties

Q: Is e-filing required for the 2025 T4As?
A: Yes. If you are filing more than five (5) T4A slips (i.e., six or more), electronic filing is mandatory. You can file via CRA web forms or internet file transfer (XML) through My Business Account. Failure to e-file may result in a penalty.

Q: Will the CRA penalize me for timing differences between my T4A reporting (calendar year) and a corporation’s T2 tax return (fiscal year)?
A: No. The CRA understands that these are distinct reporting obligations with different rules. These differences alone will not trigger a compliance review. They will only look closer if there are other signs of non-compliance.

Q: Can you clarify the penalty? Will it only apply if both companies are in the trucking industry?
A: For the 2025 and later calendar years:

The penalty applies to a payer who is a business operating in the trucking industry.
The penalty is for failing to report payments of fees for services exceeding $500.
The payment must be made to a Canadian-Controlled Private Corporation (CCPC) that is also operating in the trucking industry.
The amount must be reported in Box 048 of the T4A.
Penalties are issued under subsection 162(7) of the Income Tax Act.

In short: If you are a trucking company paying a trucking corporation over $500, you must file the T4A or face a penalty.

trucking industry - CTOA

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

CTOA Plans National Freight Security Initiative Amid Rising Cargo Theft Across Canada

CTOA Member Advisory: Understanding the New T4A Reporting Rules in the Trucking Industry