Covenant Logistics CEO expects double-digit truckload rate hikes in 2027

Covenant Logistics Group CEO David Parker expects truckload contract rates to increase by double digits in 2027 as trucking companies contend with rising operating expenses, tightening driver capacity and continued federal enforcement of safety regulations.

Speaking during the Chattanooga, Tennessee-based carrier’s third-quarter earnings call with analysts Friday, Parker said carriers will need additional rate increases to offset inflation in driver compensation, equipment, insurance and other operating costs.

“We’re going to continue to raise rates,” Parker said during the call. “We have to because of the cost.”

When an analyst asked whether the company expected another year of double-digit contract rate increases in 2027, Parker replied, “That’s my expectations.”

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