Chameleon carriers have quietly and systematically undermined the integrity of the trucking industry in Canada and the U.S. for decades. Untrained drivers, fake or nonexistent insurance, undercutting rates, and tax evasion through schemes like Driver Inc. are symptoms of a much deeper issue: the lack of enforcement and coordination between regulatory bodies.
Let’s be honest—the regulators have had decades to shut this down. And now, the only reason we’re even talking about it is because of the growing number of high-profile crashes flooding social media. The public is watching, and they’re demanding change.
If you're not familiar with chameleon carriers, check out my earlier blog karma, karma, karma, karma, karma Chameleon…. Canada’s Chameleon Carrier Crisis, where I explain the scam in more detail. In short, these are companies that dissolve and reincarnate under new names and registrations to dodge enforcement, liability, and oversight. And they’re allowed to do this because our provinces and territories don’t share data effectively. Alberta has been a hotbed for this issue since 2019, but it's not alone—this is a national failure.
Even after fatal crashes, these operators often have another Safety Fitness Certificate (SFC) waiting in the wings. Why? Because there’s no integrated system to flag them across jurisdictions. They hop from province to province—or state to state in the U.S.—and no one is any the wiser. It's a loophole, and they exploit it daily.
The FMCSA isn’t blameless—they ignored this problem for years, too. But now they’ve decided to do something about it. In 2025, they’re launching a new registration and vetting system. Here’s what it includes:
The FMCSA Plan:
So, What Is Canada Doing?
Nothing, we’ve got committees. Meetings. Thoughts and prayers after every crash. But no plan. No system. No timeline.
Transport Canada needs to build a program exactly like the FMCSA’s—now, not five years from now when we’re forced to reverse-engineer it at triple the cost. Just like the U.S., Canada struggles with regulatory inconsistency between provinces and territories. We may never harmonize weights and dimensions, but we can harmonize how we track, vet, and shut down fraudulent carriers.
Why It Matters:
Cross-border trade isn’t going away. In fact, closer integration between Canada, the U.S., and Mexico means we need to share data. That’s how we stop chameleon carriers from gaming the system.
Let’s stop pretending that deportations or blaming untrained drivers will fix trucking. It’s not the drivers—it’s the owners, the ones profiting off exploitation and safety shortcuts. Turning on a system like the FMCSA’s is like flipping a light switch and watching the cockroaches scatter.
Transport Canada, please do something. Get in the game.
In recent months, news stories and discussions on Reddit threads, Facebook groups, and industry publications have illuminated a growing crisis within the Canadian transportation industry. The issue is not just about on-road safety or the rate crisis anymore—it's about the financial instability plaguing commercial carriers across Canada and the United States. Every day, companies are declaring bankruptcy, leaving behind millions of dollars in unpaid wages, truck leases, and taxes. Yet, transportation regulations and safety codes often ignore these issues, focusing solely on a carrier’s road performance.
Take, for instance, a house-moving company in southern Alberta that has recently caught the attention of the Alberta Government's Red Tape Reduction department due to allegations of financial mismanagement and incomplete work. Or the case of Pride Group, a major Ontario-based trucking company that recently went bankrupt, leaving behind enormous debts. These are not isolated incidents—they’re part of a growing trend in the transportation industry, and it's time we addressed the broader implications.
The Gap in Transportation Oversight
During my time in public sector investigations, I’ve seen firsthand the fallout from these financial crises. Over the years, I’ve handled countless complaints from employees who were left without wages. Despite these concerns, transportation regulations in Canada, such as the National Safety Code (NSC), don’t include provisions for monitoring a carrier's financial health.
Alberta Transportation & Economic Corridors, Traffic Safety Services Division, Monitoring & Compliance Branch, Investigations & Enforcement Section monitors on-road performance with the non-functional carrier profile system but, there is no obligation to consider over-all carrier health that is not safety related. This leaves a massive gap in regulatory attention. For instance, the house-moving company mentioned earlier currently holds a "Satisfactory" Safety Fitness Certificate (SFC). A citizen conducting due diligence before selecting a carrier may view a Satisfactory rating as including overall performance and compliance to the regulations. However, the reality is that financial instability in transportation companies can lead to deteriorating safety standards. Carriers in financial trouble don’t pay the bills, the drivers, or for expensive truck maintenance. Tires are expensive and if a carrier is at the point of not paying wages or completing work already paid for you know those tires are bald and the ABS light is on.
The Consequences of Ignoring Financial Health
When we overlook the financial well-being of carriers, we're putting more than just paychecks at risk—we're endangering lives. Commercial carriers facing bankruptcy aren’t just skipping wages or taxes; they're skimping on truck repairs, neglecting safety checks, and pushing drivers to operate under less-than-ideal conditions. These are ticking time bombs on our roads, and yet, there is no requirement in Alberta’s Transportation Ministry Business Plan for 2023–2026 to address this issue.
The Alberta Transportation Ministry Business Plan for 2023 – 2026 stated, The ministry ensures a robust legislative and regulatory framework is in place to protect Albertans. Legislation and regulations are reviewed and refreshed to align requirements with emerging transportation related best practices, issues and technologies. The ministry’s focus is on ensuring "a robust legislative and regulatory framework" that protects Albertans, but the framework is incomplete. The National Safety Code and provincial regulations focus solely on road safety and compliance. They ignore critical factors like financial health, which can directly impact safety. Without a complete picture of a company’s stability, it's impossible to truly gauge its ability to operate safely in the long run.
Conclusion: The Need for a New Approach Transportation is a vital part of the economy, and the financial instability of carriers is an issue that can no longer be ignored. To protect both the public and industry workers, regulatory bodies must start evaluating the overall health of carriers. The stakes are too high to focus only on road performance. It’s time for the leadership group of Alberta Transportation & Economic Corridors, Traffic Safety Services Division, to take an interest in the industry they monitor. Read the news, follow some public Facebook groups, get Redditt. It cannot always be about the Economic Corridors part of Transportation and Economic Corridors, transportation needs some attention also.
