{
  "id": 17264187,
  "title": "Covenant Logistics CEO expects double-digit truckload rate hikes in 2027",
  "url": "https://urgent.news/2026/10/30/covenant-logistics-ceo-expects-double-digit-truckload-rate-hikes-in",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-30T17:32:06.000Z",
  "source": {
    "name": "FreightWaves",
    "slug": "freightwaves",
    "url": "https://www.freightwaves.com/news/covenant-logistics-ceo-expects-double-digit-truckload-rate-hikes-in-2027"
  },
  "original_language": "en",
  "account": "Covenant Logistics Group CEO David Parker anticipates double-digit truckload contract rate hikes in 2027. During the company's Q3 earnings call, Parker stated that trucking companies are facing rising operating expenses, tight driver capacity, and ongoing federal safety regulation enforcement. These factors necessitate additional rate increases to counteract inflation in driver pay, equipment, insurance, and other operational costs, Parker said. \"We're going to continue to raise rates. We have to because of the cost,\" he added. An analyst asked if the company expects another year of double-digit contract rate increases in 2027. Parker confirmed this as his expectation. As of Thursday, shippers resetting contracts in recent months are seeing about a 12.8% increase compared to their previous rates, up from 4.1% in the same period in 2025. The Contract Rate Change Direction index for the U.S. (CRCD.USA) tracks the average percentage difference between a new contract base rate and the one it replaced in a shipper-carrier relationship when the old rate remained stable for over 90 days. Covenant Logistics reported a 19.2% year-over-year increase in total revenue to $353.9 million during the Q3 period, with adjusted earnings per share rising to $0.50 from $0.44 a year earlier. The company is shifting from traditional one-way expedited trucking to multiyear committed capacity agreements. Currently, around 25% of Covenant's expedited trucks operate under dedicated arrangements, with the company aiming for 75-80% by year-end. The demand for high-security transportation, including technology-related shipments and data center equipment, is driving this transition. Parker noted that customers are signing contracts lasting two to four years, providing the carrier with more predictable revenue and protection against freight volume fluctuations. Unlike traditional expedited trucking, which focused on maximizing miles and equipment utilization, these new arrangements compensate Covenant for maintaining secure capacity when trucks are idle. Certain specialized operations may see operating ratios in the 80s, though these margins apply to individual operations, not the entire expedited segment. Despite strong demand for specialized freight services, Covenant faces challenges in recruiting and training qualified team drivers capable of handling high-security freight. The transition has resulted in an 8.9% reduction in Covenant's average truckload tractor fleet, dropping to 2,186 units from 2,400 a year earlier. While truckload freight revenue excluding fuel surcharges declined by 3.4% to $166 million, average freight revenue per total mile increased by 19.8% to $3.03. Managed freight revenue grew by 68.4% to $121.6 million, with adjusted segment operating income rising approximately 133% to $7.1 million.",
  "summary": "Covenant Logistics CEO David Parker expects another year of substantial truckload contract rate increases in 2027. The post Covenant Logistics CEO expects double-digit truckload rate hikes in 2027 appeared first on FreightWaves .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}