Carriers are gaining leverage, forcing shippers to transform into a 'shipper of choice' to secure capacity in a tightening market, according to Tyson Wimberly, Senior Vice President of Sales and Revenue Management at Covenant Transport, speaking at the Univar Carrier Kickoff in Chattanooga.
“We are in a much more favorable marketplace than we were the last four years — that’s a fact,” Wimberly said, as reported by FreightWaves. The shift gives carriers the upper hand to direct capacity toward accounts that provide network visibility, freight predictability, and what Wimberly called “linear consistency” in weekly volumes.
Regulatory and Insurance Pressures Tighten Supply
Six to seven federal regulations are currently in full national enforcement, with another three to five rules on the docket, according to Wimberly. This regulatory pipeline is meaningfully tightening truck supply. Insurance costs are compounding the pressure, with a recent $604 million judgment cited by Wimberly as evidence of escalating litigation exposure for brokers and asset carriers subcontracting freight. Despite Covenant maintaining more than four consecutive years of improving safety records, the carrier has seen no corresponding relief on insurance premiums.
Driver Pay: The Number One Retention Issue
Driver compensation emerged as the top driver of attrition. Wimberly argued that professional drivers did not benefit during the inflation cycle of the freight recession. Pay packages now come with more demanding terms. The core problem, he said, is utilization variability — a solo driver whose weekly mileage swings from 1,600 to 2,200 miles sees a paycheck “moving like in a regular heartbeat,” which is unsustainable for retention. Collaboration with shippers to reduce variability is critical.
Becoming a Shipper of Choice
“How are we collaborating with our shippers to take out this variability of saying, I really need steady business — linear consistency. And that’s really why we’re here today with Univar, is to understand how do we plug in and solve more solutions for them,” Wimberly said.
Shippers that offer network visibility, freight predictability, and linear consistency will be prioritized by carriers. Wimberly’s advice: align operational practices to reduce weekly volume fluctuations, provide longer lead times, and invest in technology for real-time visibility.
Covenant’s Sustainability and Evolution
Covenant is also leveraging sustainability as a differentiator. The carrier is running B100 fuel fleets on a handful of dedicated accounts, offering to absorb transition costs when a shipper prioritizes emissions reduction. “If it’s something that’s important to you, it’s important to us,” Wimberly said.
| Challenge | Current Impact | Carrier Response |
|---|---|---|
| Regulatory enforcement | 6-7 active rules, 3-5 pending | Tightening supply, capacity exits |
| Insurance costs | $604M judgment, premiums high despite safety records | Carriers seek risk-sharing with shippers |
| Driver pay variability | Mileage swings cause paycheck instability | Push for linear consistency in volumes |
Covenant is celebrating its 40th year in 2026, having been founded by David Parker in 1986. Over the past decade, it pivoted from a one-dimensional over-the-road asset carrier to a logistics model integrating dedicated, brokerage, and warehousing services. Parker was scheduled to discuss Covenant’s recently released earnings on FreightWaves the following day.
Watch List
- Pending regulations: Three to five additional federal rules could further tighten truck supply.
- Driver pay correction: Shippers that reduce mileage variability will gain carrier loyalty.
- Covenant earnings call: David Parker’s discussion on FreightWaves may provide more detail on financial performance and capacity strategy.
Shippers and freight forwarders should reassess their operational alignment with carrier expectations. Those offering predictable volumes and network visibility are best positioned to secure capacity in the current tightening market.
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