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Covenant Logistics CEO Forecasts Double-Digit Rate Growth in 2027

Truckload contract rates are headed for double-digit increases in 2027 as carriers grapple with mounting driver wages, equipment costs and insurance expenses. Covenant Logistics Group CEO David Parker told analysts Friday that rate hikes will persist throughout the coming year to offset inflationary pressures. Current market data shows shippers renewing contracts are already paying 12.8% more than expiring rates. Covenant's third-quarter performance reflected the pricing environment, with total revenue increasing $19.9 million and adjusted earnings per share rising to 50 cents from 44 cents year-over-year. The carrier is accelerating a strategic pivot toward multiyear dedicated capacity agreements, particularly for technology and data center shipments. Approximately 58% of Covenant's expedited tractors operated under committed arrangements at quarter's end, up from 40% three months prior, with targets to reach 75-80% by year-end.