Over The Road February 2026

1189694 Ontario Ltd. C.O.B. as Over The Road

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MAKING YOUR MILES COUNT

Robert D. Scheper

The 2nd Greatest Exit

2000-2001 was the worst recession for Independent Operators since deregulation. Fields were filled with parked trucks that flooded the markets as financing companies either went bankrupt or were bought out by competitors. Truck financing changed from that time forward. Before that turning point, you could get financing or leases at very reasonable terms. Today, leases are often more profitable to truck dealers than the sale of a truck. Operators lost their trucks because most carriers didn’t offer fuel subsidies, so when fuel costs doubled, thousands of operators lost their trucks. Two out of six chartered banks publicly ADVERTISED they would no longer do financing for/ in the trucking industry. Many Operators who were successful for decades lost everything they saved.

The 2008 crash brought about the 2009 trucking recession. For its time, it created the lowest freight rates on record. However, it didn’t last longer than a year. It created lots of ‘unusual charges’ as carriers deducted many new things from

Operators settlements. Personally, I had a six-inch stack of grievances on my desk for a whole year. Most Operators made it through without losing everything. What saved most of them was how short the recession was. Operators are resilient... at least for a while.

The current recession is the longest I’ve ever seen. Three years is a long time. Many carriers have been taken over, wrapped up or gone under. One of Canada’s largest specialized financing companies went into court protection (Pride), and today, most general freight haulers have as much debt as they do assets. Through the first year or two, Operators hung on, hoping the US election would carry the industry out of the hole. I was one of them. The election changed the fortunes of the industry... but mostly south of the border. Who knew that politics would decimate the future of the Canadian auto industry, that personality would influence emotional responses and National economic isolation (with our long-time ally and closest friend).

The extended industry recession has been hard on carriers, but the tolls on Operators are finally being tallied. I have talked with several dozen accounting firms who serve Operators. The number of Operators who are leaving the industry has stunned them. Though some firms stated they lost upwards of 50% of their clients, I assume they didn’t have many clients, or they were in a geographical location that devastated the industry. In my estimation, about 15% of all Operators have either sold their truck and retired, sold their truck and are leaving the industry or sold their truck and are now working as a company driver. Its one of the most transformative time periods since 2000.

There is also a great reduction in new Operators coming INTO the industry. When they do, most of them (nearly 2 to 1) are signing on with older trucks rather than new buy/leases.

This tendency towards negative investment in power by Operators is coupled with carriers who have minimal to no ability to upgrade their fleet due to the high price of trucks and the low ability to finance. Carriers are then being pushed to hold trucks way beyond their typical knowledge or understanding of maintenance. If someone asked me for a summary of the industry, I would somehow describe it as financially THIN.

In 30+ years, I have never seen such uncertainty. Everyone is looking around the corner for the light to shine or an opportunity to open for all. I am certain things will get better; I just don’t know when. I’m done guessing.

I still have most of my Operator clients doing well; some very well, but the mood of the industry is quiet and sometimes gloomy, even panicked. The industry has always undergone difficult times, and it will get through this as well.

About the Author:

Robert D. Scheper is a leading Accountant and Consultant exclusively serving the Lease/ Owner Operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His second book “Choosing a Trucking company” is the most in-depth analysis of the independent operator industry today. He has a Master degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars. You can find him at www.makingyourmilescount. com or 1-877-987-9787.

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SAFETY DAWG

Chris Harris

Driver Inc. Is a Cancer, but It’s Death May Claim the Host

On a typical Friday evening, while Mike McCarron is cruising to the cottage listening to classic rock, I’m often sitting across from clients who are still trying to figure out how to outmaneuver the Canada Revenue Agency (CRA). Mike thinks Driver Inc. is dead. I wish I shared his optimism. I hate the Driver Inc. model with a passion—it is a blight on our industry that exploits the vulnerable and punishes the honest—but I am not yet ready to write its obituary.

In fact, what I am seeing on the ground suggests that Driver Inc. isn’t dying; it’s mutating. And in its mutation, it might just take down the traditional owner-operator model as we know it.

The Unfairness of the Status Quo

Let’s be clear: Driver Inc. is an ethical and legal disaster. For the truck driver, it is a mirage of “independence” that strips away every safety net Canadian society provides. No EI, no CPP contributions, no WSIB, and no job security. These drivers are often newcomers who don’t realize they are one audit away from a life-altering tax bill.

For the trucking companies that play by the rules—the ones paying source deductions, providing benefits, and maintaining rigorous safety standards—Driver Inc. is a slap in the face. It creates a two-tier system where the “cheats” can underbid legitimate carriers by 20% to 30% simply by offloading their social and tax obligations onto the driver’s back. It is a race to the bottom that devalues the profession and turns a high-skill job into a form of indentured servitude.

The New (and maybe old) Loophole: The Lease-Back Scheme

While the federal government’s Budget 2025 has allocated $77 million to crack down on this scheme, the operators I know aren’t closing up shop. They are “reconfiguring.”

The most common strategy they are exploring is a leasing model. The carrier leases the company truck back to the incorporated driver. On paper, it looks like a traditional owner-operator setup. The driver is “incorporated” and they “lease” their equipment. They believe this paper trail will let them fly under the CRA radar.

But here is the catch—and

it’s

a

big

one. The “Exclusivity” Trap

In the trucking world, the “plate” (the registration) is owned by the CVOR holder. That same CVOR holder also supplies the insurance. Because of how Ontario (and most of Canada) regulates safety and liability, a driver who leases a truck from a carrier is effectively “tethered” to that carrier. They cannot take that truck and go haul a load for a competitor on Tuesday if their main carrier is slow.

The CRA has a very simple, very sharp knife for these arrangements: the “Four-Fold” test. One of the primary pillars of that test is Independence. The CRA asks: Is this worker free to provide services to other clients?

In these new lease-back models, the answer is a resounding “No.” The driver is restricted to one company by the very nature of the CVOR and insurance requirements.

The Unintended Consequence: The End of the Owner-Operator?

This is where my skepticism turns into genuine concern for the whole industry. If we demand that the CRA crack down on any driver who is “restricted to one company,” we are inadvertently pointing a loaded gun at thousands of legitimate, hardworking owner-operators.

Historically, many owner-operators have worked exclusively for one carrier for years. They own their trucks, but for ease of administration, they run under the carrier’s authorities. If the CRA decides

that “exclusivity plus lack of equipment mobility” equals an employee relationship, the traditional owner-operator model - the backbone of our industry - could be declared illegal overnight.

We risk throwing the baby out with the bathwater. In our zeal to kill the “Driver Inc.” scam, we may create a regulatory environment where the only legal way to drive a truck is as a T4 employee.

A Wary Eye on the Horizon

Mike McCarron is right that the “money is getting smarter” and the “culture is changing.” But “stupidity” has a funny way of surviving when there is money to be made. My fear is that as the CRA tightens the noose on Driver Inc. using the “exclusivity” argument, they won’t stop at the scammers.

We need to eradicate Driver Inc. to save our industry’s soul. But we must be incredibly careful that in performing the surgery, we don’t kill the legitimate owner-operator host that keeps our economy moving. The end may be near, but it’s going to be a lot messier than a Friday night drive to the cottage.

Chris Harris CEO & Top Dawg Safety Dawg Inc.

Chris@safetydawg.com www.safetydawg.com 905 973 7056

556 Upper Wentworth St. Hamilton, ON L9A 4V2