Covenant CEO says market healthier as load-to-truck ratios ease to 1.3‑to‑1.5
Covenant Logistics Group founder and CEO David Parker said load-to-truck ratios cooled from roughly two-to-one in the first half of 2025 to 1.3-to-1.5 starting in July and August, calling the shift healthier and more sustainable heading into peak season. He noted that in the second quarter, most truckload carriers posted double-digit rate increases, yet operating ratios improved only about one point because costs rose just as fast. Covenant’s 2023 acquisition of Lou Thompson, a live-haul chicken carrier, has expanded from about 230 trucks to 800 trucks.
Covenant’s fleet is now approximately 60% Freightliner and 40% Peterbilt, with roughly 100 solo over-the-road trucks remaining as the company exits commoditized OTR freight.
“We need another double-digit rate if this industry’s gonna stay healthy,” David Parker, CEO of Covenant Logistics Group said.
“I have not found one customer willing to pay for that electric truck yet — not one, unless it’s California,” David Parker, CEO of Covenant Logistics Group said.
David Parker, CEO of Covenant Logistics Group, discusses the evolving freight landscape, including the impact of emissions standards, the move away from commoditized OTR, and surprising insights into specialized markets like live chicken hauling. He shares his views on the future of electric and autonomous trucks, and how economic factors like GLP-1 drugs are affecting consumer freight.
What we know
Load-to-truck ratios cooled from roughly 2-to-1 in the first half of 2025 to 1.3-to-1.5 starting in July and August.
In the second quarter, most truckload carriers posted double-digit rate increases, yet operating ratios improved only about 1 point because costs rose just as fast.
Covenant’s 2023 acquisition of Lou Thompson grew from about 230 trucks to 800 trucks.
Covenant’s fleet is now approximately 60% Freightliner and 40% Peterbilt.
Parker said the industry needs another double-digit rate to stay healthy.