world-economy

Canadian Economy Surges on Energy Gains as US Trucking Rates Climb

Canada's economy is tracking toward 3.4% growth in the second quarter, driven by sustained strength in oil and gas production. This expansion extended into May as North American freight markets showed signs of tightening capacity. Trucking rate indexes climbed during the second quarter and are projected to reach record levels in the third quarter across both truckload and less-than-truckload segments. Major carriers are capitalizing on the market dynamics. Schneider National raised its full-year earnings guidance by 18% after topping second-quarter results, signaling confidence in pricing power ahead. Meanwhile, less-than-truckload operator Saia beat second-quarter expectations but provided weaker-than-anticipated third-quarter margin guidance, suggesting carriers face cost pressures despite rate momentum. US labor cost growth remained steady in the second quarter, offering little inflationary headwind to the broader economy.