Covenant Logistics Group CEO David Parker sees the trucking market at an inflection point as small carriers exit due to insurance and regulatory pressures. Third-quarter earnings show revenue of $296.9 million, with adjusted earnings of $0.44 per share. Margins are squeezed by rising insurance costs, but dedicated operations grew 11%.

Truckload segment operating income declined to $9.2 million, impacted by rising costs. Covenant’s freight revenue per mile increased 5% year-over-year, but lower utilization affected efficiency. Brokerage division margins are compressed. The company delays new truck purchases due to uncertainty over tariffs on imported heavy-duty trucks and components.

Parker remains cautiously optimistic about the industry at the American Trucking Associations’ annual conference. He notes carriers are content with government actions, expecting challenges before improvements. Capacity leaving the market may impact national spot rates as regulatory pressures intensify. The company’s balance sheet remains strong despite market challenges.

Read more at Yahoo Finance: Covenant CEO sees ‘pain before the gain’ as trucking capacity tightens