April 27th, 2026
Good morning. It's Monday, April 27th — here is what the week ahead looks like for North American freight.
Cross-border carriers are dealing with persistent Canada Border Services Agency (CBSA) system outages while uncertainty over the July United States-Mexico-Canada Agreement (USMCA/CUSMA) review continues to slow freight flows on both sides of the border. Spot rates have climbed to their highest level since June 2022, but surging diesel costs are absorbing much of the gain. There is also an important cargo theft warning that every fleet hiring drivers right now should read.
THE RUNDOWN
CBSA system outages keep adding costs for cross-border carriers
Truck News reports that ongoing IT system outages at the Canada Border Services Agency are continuing to disrupt cross-border supply chains, with fleets citing rising costs and growing delays at the border. The Canadian Trucking Alliance (CTA), which has been engaging CBSA through regular working groups and relaying real-time carrier feedback, says confidence in critical border systems remains shaken, and is pressing the agency to restore stability as quickly as possible. CBSA, working with Shared Services Canada on a multi-pronged improvement plan, is expected to provide industry with additional updates and mitigation measures within the coming days.
USMCA uncertainty is slowing cross-border freight
Cross-border trucking volumes have softened as businesses hold off nearshoring decisions ahead of the USMCA/CUSMA review scheduled for July, Land Line reports, driven by a combination of US policy uncertainty and the effective removal of a large number of Mexican drivers from compliant capacity. The tender acceptance rate for Mexican freight has slipped to 86%, well below the market standard of approximately 98%, as constrained capacity pushes shippers toward the spot market. A successful July review that extends the 16-year agreement is expected to unlock pent-up nearshoring investment — but the outcome remains far from certain.
March trailer orders beat forecasts; spot rates at a four-year high
Trailer orders in March came in above analyst expectations, while broker-posted spot rates reached their strongest level since June 2022 as freight demand continues its recovery. Truck News reports that all-in rates are running approximately 27% higher year-over-year, though rising diesel costs are absorbing much of the gain, with carrier fuel expenses up nearly 29 cents per mile since March. Flatbed is outperforming van equipment, with flatbed rates at their highest since spring 2022 even after fuel surcharges are stripped out.
New York sues DOT over $73.5 million in withheld highway funding tied to non-domiciled CDLs
Canadian carriers with non-domiciled drivers holding New York-issued commercial driver's licences face new compliance uncertainty, with FreightWaves reporting that New York State has filed a lawsuit in the Second Circuit Court of Appeals challenging the US Department of Transportation (DOT)'s decision to withhold approximately $73.5 million in highway funding over CDL issuance practices. The state argues it followed the federal rules in place at the time of issuance, while a Federal Motor Carrier Safety Administration (FMCSA) audit found that more than 53% of 200 non-domiciled CDL records sampled were issued in violation of federal law. New York now joins California as the only states to have actually lost federal highway funding over non-domiciled CDL compliance.
Knight-Swift Q1 loss driven by one-time charges; carrier sees improving conditions ahead
Knight-Swift Transportation posted a first-quarter net loss of $1.3 million — a sharp reversal from net income of $30.6 million in Q1 2025 — driven largely by non-recurring items, per Transport Topics, including $18 million in adverse claims development in its less-than-truckload (LTL) segment and a $4 million adverse VAT ruling tied to Mexico operations. Total revenue of $1.85 billion was up 1.4% year over year, and management cited tightening capacity and improving rate discussions as reasons for optimism heading into Q2. The carrier guides for full-year 2026 adjusted earnings per share of $0.45 to $0.49.
ON THE ROAD — Data Snapshot
Diesel — Canada: The national average for on-highway diesel is approximately 211¢/litre (CAD) as of April 20, with the federal government's 4¢/litre fuel excise tax suspension — effective April 20 through September 7, 2026 — now flowing through to retail prices across the country. Alberta continues to track meaningfully below Ontario and Quebec averages, a gap that matters for carriers managing fuel costs on interprovincial and cross-border lanes.
Diesel — US: The national average for on-highway diesel fell sharply to $5.40/gallon in the week ending April 21, down from $5.61 the prior week — the largest single-week drop in months. The Energy Information Administration (EIA) projects diesel will remain well above 2025 levels through year-end, with global supply tightness tied to disruptions in the Strait of Hormuz keeping a floor under prices even as they ease from their April peak.
Spot rates: Broker-posted spot rates remain at their strongest level since June 2022, with all-in rates running approximately 27% above the same week last year. The load-to-truck ratio hit its highest point since February 2022 in the prior week; flatbed is leading the strength while van rates are stabilising after weeks of consecutive gains.
Rate data: Truckstop.com / FTR Transportation Intelligence. Diesel (Canada): Natural Resources Canada. Diesel (US): US Energy Information Administration.
REG WATCH
Driver Inc. enforcement intensifies with joint federal and provincial action
Federal and provincial agencies are escalating inspections and penalties targeting driver misclassification in trucking, with joint enforcement operations now active at weigh stations across multiple provinces and at the Port of Montreal. Truck News reports that the Ontario Trucking Association (OTA) is encouraged by updates from Employment and Social Development Canada (ESDC), which cited over $12 million in unpaid Workplace Safety and Insurance Board (WSIB) premiums already assessed against Ontario carriers, with some individual cases nearing $1.5 million. The crackdown is advancing as a federal House of Commons committee studies the Driver Inc. scheme and labour ministers work toward a national action plan.
US marijuana reclassification does not change CDL testing rules — but industry wants written confirmation
Truck News is reporting that the Trump administration's decision to move state-licensed medical marijuana from Schedule I to Schedule III of the Controlled Substances Act — signed into effect April 23 — does not change the rules for commercial drivers, who remain prohibited from marijuana use under US Department of Transportation (DOT) regulations. The Truckload Carriers Association (TCA) and the American Trucking Associations (ATA) have both warned the reclassification could create confusion among drivers and complicate roadside enforcement, given the absence of an accepted cannabis impairment standard comparable to the one used for alcohol. For Canadian carriers running US lanes, DOT drug testing requirements remain fully in effect; fleets should reinforce their zero-tolerance policies with drivers now, and watch for updated guidance from the DOT's Office of Drug and Alcohol Policy and Compliance (ODAPC).
More US states move to tighten non-domiciled CDL requirements beyond federal minimums
What many in the industry had anticipated following the FMCSA's February 2026 final rule on non-domiciled commercial driver's licences was confirmed in Overdrive this week — multiple states are now implementing their own restrictions, with some going beyond federal requirements. Indiana moved quickly after passing enabling legislation to revoke a significant number of non-domiciled licences, and other states are pursuing similar measures as federal pressure continues to mount. Cross-border carriers dispatching into multiple US states face a growing patchwork of driver-qualification compliance requirements that will need active monitoring.
TECH & EQUIPMENT
Waterloo-based Descartes acquires AI fleet safety platform Idelic for $28 million
Waterloo, Ont.-based Descartes Systems Group has acquired Pittsburgh-based Idelic — Truck News reports the $28 million deal adds an AI-powered driver risk and safety management platform to Descartes' Global Logistics Network, with up to $12 million in additional performance-based earn-out payments tied to revenue targets over two years. Idelic's platform unifies driver monitoring, training, reporting, and coaching into a single system, drawing on a dataset of more than 40 billion miles of telemetry and over 400,000 accident records. The acquisition is Descartes' 36th in 10 years, and brings meaningful fleet safety data into its growing North American logistics technology stack.
THE BUSINESS SIDE
Dynamic Connections acquires SAFE Transportation in North American logistics deal
SAFE Transportation Services, a Cincinnati-based non-asset third-party logistics (3PL) provider specialising in high-value, time-sensitive freight for medical, pharmaceutical, and food-grade supply chains, has been acquired by Dynamic Connections, Truck News reports, with financial terms not disclosed. The deal expands Dynamic Connections' over-the-road capabilities and broadens its cross-border footprint spanning the US, Canada, and Mexico. SAFE, a family-built operation since 1987, said finding the right partner to continue serving its specialised customer base was the determining factor in the sale.
Carrier survey signals weak Q1 but cautious optimism for the second half
Freight rates and volumes declined across the first quarter of 2026, but most carriers expect conditions to improve as the year progresses, per Truck News. The Bloomberg-Truckstop carrier survey found sentiment turning more positive, with carriers pointing to tightening capacity and the government's ongoing enforcement crackdown on non-compliant drivers and carriers as likely catalysts for rate recovery later in the year. The findings align broadly with what multiple Q1 earnings calls have signalled — the floor may be behind the market, even if the full recovery has yet to materialise.
ONE GOOD READ
Cargo thieves have developed a method that bypasses carrier vetting entirely — not by creating fake companies, but by placing operatives inside legitimate, fully vetted ones. The Transported Asset Protection Association (TAPA) is calling it the "Trojan Driver Scam": theft ring members get hired as drivers, run normal loads until assigned a high-value shipment, hand it off to a waiting crew during a routine stop, and then move on to their next carrier after the trucking company fires them for a protocol violation. It is a methodical, self-resetting scheme, and any fleet manager involved in hiring right now needs to understand how it works.
Read the full breakdown at FreightWaves.
STAT OF THE DAY
More than $12 million in unpaid Workplace Safety and Insurance Board (WSIB) premiums has already been assessed against Ontario trucking companies as part of the escalating crackdown on driver misclassification, with some individual cases nearing $1.5 million, according to the Ontario Trucking Association.