Small fleet operators say compliant carriers are being pushed out by ultra low cost, non domiciled CDL labor
For more than three years, a small fleet owner says his family run trucking business has been forced to compete against carriers operating with significantly lower labor costs, many of whom rely on non-domiciled or improperly obtained CDLs enabling freight to move at rates well below true operating costs.
“The past three years have been absolutely brutal,” the carrier owner said, describing a freight environment where loads have consistently paid under cost since mid 2022, leaving compliant fleets with few sustainable options.
While downturns are not uncommon in trucking, he emphasized that the current cycle is unlike anything he has seen not just because of its severity, but because of its unusual duration. For more than three and a half years, he said, brokered freight moving over 500 miles has frequently paid 25 to 75 cents per mile below his company’s breakeven point.
“That model simply isn’t sustainable,” he explained. “Eventually you burn through working capital, exhaust the equity in your equipment, and face the painful reality of taking on debt just to survive after years of losses with no clear recovery in sight.”
A structural shift, not a normal cycle
His experience reflects a growing concern across the trucking industry that the current downturn is not merely cyclical, but rather the result of a structural shift driven by labor arbitrage, CDL fraud, and uneven regulatory enforcement.
Industry executives and former fleet owners have echoed similar warnings, arguing that non domiciled CDL drivers, combined with weak oversight, have fundamentally altered freight pricing. According to these voices, noncompliance is being rewarded, while carriers that follow the rules are being systematically undercut, with consequences that extend beyond rates to road safety, capacity stability, and long term industry health.
Some industry leaders describe a new operating environment where cheap labor and questionable licensing practices allow certain carriers to underbid virtually any compliant fleet.
“These operators run hard, accept freight at any price, and disappear before accountability ever catches up,” one executive said, adding that U.S. based drivers cannot earn a living when freight is awarded solely to whoever can haul it cheapest, regardless of compliance.
Another former carrier owner described the situation as a “new trucking ecosystem” powered by fraudulent CDLs and ultra-low wages, warning that some drivers earn only a fraction of what American drivers make enabling carriers to undercut every rate in the market.
The small fleet owner said he is now living the economic fallout of that shift firsthand, hauling freight below cost year after year while compliant operators steadily run out of capital.
Labor driven cost advantages reshape competition
Like many industry observers, he traces much of the imbalance to changes surrounding non domiciled commercial driver’s licenses, which he believes opened the door to tens of thousands of drivers willing or forced to work for far less than U.S. market wages.
“These carriers are saving enormous amounts on driver labor while often sidestepping regulations,” he said. “If I could legally pay my drivers and office staff half of what I pay today and gain a 25 to 50 cent per mile advantage, I could run this freight profitably. But compliant carriers simply don’t have that option.”
He noted that fuel, insurance, tires, equipment payments, and maintenance costs are largely the same for all carriers. That leaves labor costs and regulatory compliance as the primary variables, and operators who cut corners in those areas gain a decisive pricing edge.
“You cannot compete against someone who is ignoring rules or exploiting vulnerable labor,” he said. “The industry depends on regulators to ensure a level playing field and right now, that isn’t happening.”
Safety and enforcement concerns grow
According to the fleet owner, fraudulent or improperly issued CDLs are central to the problem, enabling operating practices that raise serious safety concerns alongside economic ones.
He cited reports of trucks cycling through multiple drivers some allegedly unlicensed, or operating under conditions he compared to “rolling sweatshops.” These practices, he warned, create both dangerous road conditions and unfair competitive advantages.
“When you exploit people, you lower your costs,” he said. “And that exploitation becomes a competitive weapon, while compliant operators are the ones being punished.”
He also pointed to federal safety data showing a notable increase in truck-related fatalities since 2016, despite the widespread adoption of electronic logging devices, which were expected to improve safety outcomes. To him, that trend suggests deeper systemic issues that go beyond technology alone.
A call for fair enforcement, not more regulation
The solution, he said, is not additional regulation, but consistent enforcement of existing laws across safety, labor, and licensing.
“Enforce what’s already on the books,” he said. “Make everyone follow the same rules. That’s all compliant carriers are asking for a fair fight.”
Without meaningful enforcement, he warned, the industry risks losing the responsible carriers that have supported U.S. supply chains for decades.
“There are a lot of excellent trucking companies doing things the right way,” he said. “But if you force them out of business, what you’re left with is a much bigger problem for safety, for capacity, and for the entire economy.”
