Q1 2026 was a quarter of regulatory settling and cautious market recovery for Canadian carriers. CARM Release 2 kept compliance teams busy, the freight market found a floor, and ELD certification lists shifted again.
Quick answer
Q1 2026 brought incremental regulatory tightening rather than dramatic change. CARM Release 2 onboarding accelerated for cross-border carriers, the FMCSA Drug and Alcohol Clearinghouse II rules continued to reshape hiring workflows, Transport Canada ELD certification removed a handful of devices from its list, and spot rates held modestly above Q4 2025 while contract bid season signalled cautious optimism.
TL;DR
- CARM Release 2 is live and importer-of-record workflows have stabilized — but many carriers still lack RPP visibility
- FMCSA Clearinghouse II query requirements continue to affect Canadian drivers running south of the border
- Transport Canada refreshed its ELD certification list; at least one device moved to provisional status
- Spot rates firmed modestly in March after a soft January; contract rates in 2026 bid cycles trended 3-6% above 2025
- Diesel finished Q1 roughly flat nationally, with regional swings in Atlantic Canada and BC
- CTA and provincial associations pushed harder on underground economy and Driver Inc. enforcement
Regulatory: CARM, Clearinghouse II, ELD, HOS
Jan 15 — CARM Release 2 operational stabilization
The CBSA's CARM Release 2 platform moved past its post-launch turbulence in January, though carriers acting as customs brokers for shippers still reported queue delays and RPP anomalies through February. Smaller fleets found the portal confusing when shippers expected carriers to handle commercial accounting declarations.
Implication: If your fleet runs cross-border and you have not confirmed the Importer of Record on every lane, audit now. Misaligned IoR assignments are the #1 source of Release 2 disputes. Our CARM Release 2 carrier guide has the onboarding checklist.
Feb 4 — FMCSA Clearinghouse II follow-through
The FMCSA's Clearinghouse II rules continued to reshape how Canadian carriers onboard drivers who cross into the US. Full queries are required for any Canadian driver operating under a US CDL equivalent for hire, and pre-employment negative results must be documented before first southbound dispatch. Canadian carriers running dedicated southbound lanes reported an average 3-5 day lag on new-hire dispatch as consent and query workflows tightened. See our Clearinghouse II explainer for the full process.
Feb 27 — ELD certification list refresh
Transport Canada updated its certified ELD list late in February, moving at least one previously certified device to provisional status pending re-testing. Carriers running the affected hardware were notified through their providers and given a runway to migrate or update firmware, but smaller fleets running older generations reported scrambling to understand whether their audits would still pass roadside.
Mar 18 — HOS enforcement trend: clock-start disputes
Provincial enforcement in Q1 leaned harder on clock-start disputes, particularly in Ontario and Alberta. Inspectors flagged more drivers for misclassifying yard moves and personal conveyance, with the underlying issue almost always an ELD setting rather than intentional evasion. Carriers should re-verify ELD configurations quarterly.
Market: Rates, volumes, fuel
Spot vs contract
Spot rates nationally held above the Q4 2025 trough but stayed well below 2022 peaks. March saw the first real tightening in dry van demand since last summer, and reefer capacity felt tight earlier than usual on produce lanes. Contract bid season — most 2026 RFPs closed in February and March — is being reported at 3-6% above 2025 awards, with the bigger moves on lanes where capacity has exited meaningfully.
Diesel
National average diesel finished Q1 close to where it started, with Atlantic Canada carriers seeing firmer prices driven by refinery maintenance and BC seeing a mid-quarter spike. Fuel surcharge programs that reset weekly generally kept pace; carriers on monthly resets felt a margin pinch in February.
Capacity exits
Carrier exits continued through Q1 at an elevated pace, though slower than mid-2025. The pattern: undercapitalized small fleets that expanded in 2021-2022 continue to wind down. For carriers weighing their own cushion, our profit margin benchmarks piece lays out healthy ranges.
Technology: AI and ELD vendor activity
AI-driven dispatch optimization and load-board pricing tools continued to mature in Q1. The practical wins this quarter were unglamorous: automated detention-capture workflows, AI-assisted document coding, and better lane-pricing predictions inside TMS platforms. ELD vendor activity was quieter than 2025, though at least two mid-tier vendors publicly discussed consolidation conversations.
Associations: CTA and provincial updates
The Canadian Trucking Alliance kept underground-economy and Driver Inc. enforcement at the top of its agenda through Q1, pressing CRA and provincial labour ministries for clearer enforcement commitments. Provincial associations in Ontario, Quebec, Alberta, and BC continued their own advocacy on border infrastructure, driver training standards (MELT), and insurance reform.
On the cross-border side, both CTA and the American Trucking Associations continued to coordinate on harmonization issues around ELDs, hours of service, and emissions. Expect more formal joint positions in Q2.
FAQ
Is CARM Release 2 fully stable now?
Mostly, yes. Release 2 stabilized operationally through Q1 2026, but carriers with unclear Importer of Record assignments continue to experience disputes. The CBSA portal still has rough edges, and smaller fleets should confirm RPP posture and IoR designations with every shipper before assuming the path is clean.
Do Canadian drivers crossing the border need Clearinghouse II queries?
Yes, for any Canadian driver operating for hire under US authority. FMCSA Clearinghouse II requires full pre-employment queries and annual queries for drivers in positions that require a US CDL equivalent. Document the consent and query records before the driver's first southbound dispatch.
How tight is Canadian capacity right now?
Tighter than a year ago but still softer than 2022. Q1 2026 saw modest spot rate firmness, reefer lanes tightening earlier than expected, and contract awards 3-6% above 2025. Capacity has exited, which supports rates, but broad market strength still depends on freight demand recovering further.
What should carriers watch on ELDs in 2026?
Watch the Transport Canada certified device list for status changes, verify yard-move and personal conveyance settings match driver training, and keep firmware current. Enforcement is focusing on configuration errors, not just missing devices.
Are HOS enforcement patterns changing?
Enforcement is leaning harder on clock-start and duty-status classification disputes, especially in Ontario and Alberta. The underlying issue is almost always an ELD configuration or driver training gap, not deliberate evasion. A quarterly settings audit helps.
Next steps
Audit your IoR assignments on every cross-border lane, re-verify ELD configurations, and make sure your contract bids reflect Q1 market firming. TruckerPro's TMS covers dispatch, compliance, and settlement on tms.truckerpro.ca, and cross-border filings can be paired with borderpro.ai for CARM-ready workflows.