The Freight Market is Healthier Than You Think

Covenant Logistics Group’s CEO David Parker says the U.S. freight market is in better shape than many carriers expect, pointing to improving load-to-truck ratios. He said the ratio cooled from roughly 2-to-1 in the first half of 2025 to about 1.3-to-1.5 starting in July and August, a “healthier” shift heading into peak season. Parker noted that while most truckload carriers posted double-digit rate increases in the second quarter, operating ratios improved only about one point as costs rose quickly. He added that 2% to 3% of capacity has already exited and more is still leaving, aided by FMCSA enforcement. Covenant aims to exit commoditized OTR freight and expand high-service niches after buying Lou Thompson in 2023.