BMO Credit Data: Trucking Finances Still Weak Despite Rate Upturn

Did stronger freight rates actually improve carrier finances in early 2026?

No. BMO, one of the largest lenders to North American trucking, reported that four key credit health indicators for its trucking clients deteriorated in the second quarter of 2026, despite an upturn in freight rates. The bank's transportation group, about 90% of which finances truckers, showed little improvement in borrower credit conditions for the quarter ending April 30.

BMO is the former Bank of Montreal. As a publicly traded company, its quarterly disclosures on transportation-sector credit metrics have served as a bellwether for the financial health of small and mid-sized carriers. The bank released the data in its May 27 earnings report.

Why this may be the last transparent look at carrier credit

BMO is selling its transportation finance group to Stonepeak, a private equity firm. The deal is expected to close in the fourth quarter of 2026. Once the sale completes, the quarterly public disclosures that have given carriers, analysts, and lenders a window into trucking credit conditions will likely disappear. Private equity buyers are not required to publish the same granular data.

The May 27 earnings report will likely be the next-to-last of its kind. After the sale closes, carriers will lose one of the few public data sources that tracks whether trucking borrowers are keeping up with loan payments, falling behind, or defaulting.

What the four credit metrics showed

BMO tracks four indicators of credit health in its transportation portfolio. All four worsened in the second quarter, according to the bank's disclosure. The bank did not publish the specific percentage changes or dollar amounts for each metric in the source material reviewed, but confirmed that none of the four improved quarter-over-quarter.

The deterioration occurred during the same period when spot rates and contract rates showed signs of recovery. Analysts had expected stronger freight pricing to translate into better cash flow for carriers, which would typically show up as improved loan performance. The BMO data suggests that either the rate gains have not yet reached enough carriers to move the credit needle, or that carriers are using any additional revenue to cover other obligations rather than improving their loan standing.

What this means for small carriers and owner-operators

If you're a small fleet or owner-operator, the BMO data is a warning that rate improvements alone may not be enough to stabilize your balance sheet. Lenders are still seeing credit stress across the trucking sector, even as rates tick up.

Before taking on new debt or refinancing existing loans, check whether your lender is tightening standards. If BMO's portfolio is any indication, banks may be less willing to extend credit or may demand higher interest rates to offset the risk they're seeing in trucking borrowers.

If you're already carrying debt, prioritize loan payments. The fact that credit metrics worsened during a rate recovery suggests that lenders are watching closely for signs of default. Missing a payment now, when rates are improving, could signal to your lender that you won't recover even in a better market.

The private equity factor

Once Stonepeak takes over BMO's transportation finance business, carriers will lose visibility into how the portfolio is performing. Private equity firms typically focus on maximizing returns for their investors, which can mean tighter credit standards, higher fees, or faster moves to repossess equipment when borrowers fall behind.

If you have a loan with BMO's transportation group, expect communication from Stonepeak after the sale closes. Read the terms carefully. Private equity buyers sometimes renegotiate loan terms or accelerate repayment schedules. If your loan is up for renewal in late 2026 or early 2027, start shopping for alternative financing now, before the transition creates uncertainty.

What to do before the next earnings report

BMO's next quarterly report, expected in late August, will likely be the final public look at trucking credit conditions from this lender. If you're a carrier with a BMO loan, use the next three months to improve your credit position. Pay down balances where possible. Avoid taking on new debt unless it's directly tied to revenue-generating equipment. And if you're shopping for a truck loan, compare offers from multiple lenders. The BMO data suggests that credit conditions are still tight, which means you may face higher rates or stricter terms than you would have seen a year ago.

For dispatchers and small-fleet owners evaluating broker relationships, the credit data is a reminder that financial stress is still widespread in the industry. Brokers who rely on factoring or who are themselves carrying heavy debt may be slower to pay or more likely to disappear if their own credit lines tighten. USMCA review changes could add cross-border compliance costs that further squeeze broker margins, making payment delays more likely.