Covenant Logistics' CEO expects double-digit truckload contract rate increases in 2027, a sign shippers may face another year of rising costs.
Contract Rates Seen Climbing in 2027
- Double-digit truckload contract hikes are expected in 2027, per Covenant Logistics CEO David Parker.
- That would follow another year of substantial contract increases, giving small carriers leverage in upcoming rate talks.
- Freight cycles since 2000 have behaved more like random shocks than clockwork, so plan for surprises.
Source: FreightWaves: Covenant Logistics CEO expects double-digit truckload rate hikes in 2027 · FreightWaves: Freight cycles are anything but regular
Arkansas Blitz Hits Drivers Hard
- 183 English-language proficiency violations were written during a two-day Arkansas enforcement operation.
- 44 criminal arrests and 74 immigration violations also resulted within 48 hours.
- Expect English proficiency checks at roadside stops; make sure every driver can handle inspector questions.
Source: FreightWaves: Arkansas truck blitz nets 183 English violations, 44 arrests in 48 hours
Border Trucking Under Pressure
- Cabotage enforcement is emerging as a threat to cross-border trucking operations.
- 50% toll cut on the Colombia Bridge from Nuevo León aims to draw more cross-border truck traffic.
- Mexican truckers paused their nationwide strike but want measurable highway security gains from negotiations.
Source: FreightWaves: Borderlands Mexico: Cabotage enforcements threatening cross-border trucking · FreightWaves: Mexico truckers halt protests, demand action on deadly highway crime
New Walmart DC Near San Antonio
- $400M distribution center planned in Cibolo, Texas, spanning more than 744,000 square feet.
- 425 jobs expected, with groundbreaking slated for February, pointing to future regional freight demand.
Source: Supply Chain Dive: Walmart plans $400M Texas distribution center · FreightWaves: Borderlands Mexico: Cabotage enforcements threatening cross-border trucking
Fed Holds; Autonomous Trucks Lag
- The Fed kept its main rate steady despite accelerating inflation, so equipment financing costs stay elevated.
- Two Fed policymakers dissented in favor of a 0.25 percentage point hike.
- Aurora posted a $257 million operating loss on $3 million in revenue and cut its full-year forecast.
- Aurora still says it will produce more than 1000 trucks in 2027.
Source: Supply Chain Dive: Fed holds main interest rate steady despite accelerating inflation · FreightWaves: Aurora reaffirms it’s on track to produce more than 1000 trucks in 2027
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