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Carriers Flex Newfound Market Power, Demand Shipper Alignment on Capacity

Carriers have entered their strongest negotiating position in four years, reshaping how they allocate capacity. Covenant Transport's leadership outlined allocation criteria at an industry gathering in Chattanooga: network visibility, freight predictability, and consistent weekly volumes matter most. The leverage shift arrives as carriers face mounting headwinds. Insurance expenses continue climbing following a $604 million judgment that exposed litigation risks in freight subcontracting. Regulatory enforcement has tightened considerably, with six or seven rules now in full effect nationally and three to five additional regulations pending. Driver compensation remains the primary attrition factor, with professional operators still recovering from earnings losses sustained during the freight recession. Despite maintaining multi-year safety improvements, carriers report no corresponding insurance premium relief. Shippers seeking reliable capacity must now demonstrate operational alignment and predictability to secure preferred positioning.