Covenant

What Covenant does

Covenant Logistics Group, Inc. (NYSE: CVLG) is a publicly traded, diversified transportation and logistics provider headquartered in Chattanooga, Tennessee, operating a 2,600+ tractor fleet across the United States. The company runs two core divisions: Logistics (Dedicated Contract Carriage, Distribution Center Management, Managed Transportation, Port & Drayage) and Transport (Expedited Truckload, Regional Truckload, Capacity Solutions), supplemented by a digital self-service LTL quoting platform called Rate2Ship. Its family of brands includes Star Logistics (truckload brokerage), Sims Transport, Landair, and Lew Thompson & Son Trucking (poultry/protein refrigerated), and it holds a 49% equity method investment in Transport Enterprise Leasing for revenue equipment financing.

The company generates revenue primarily through managed-services contracts for asset-based trucking (expedited and dedicated capacity with company-owned tractors and drivers) and asset-light services (freight brokerage, transportation management, warehousing). Pricing is quote-based and not publicly disclosed; dedicated carriage is sold via custom annual contracts while brokerage/LTL flows through Rate2Ship on a transactional take-rate basis. Core technology consists of the MercuryGate TMS for load tracking and execution, the Rate2Ship online LTL quoting portal, and "data-driven continuous improvement" analytics layered over fleet operations. Sustainability investments (renewable diesel, electric APUs, EPA SmartWay High Performer) and strategic partnerships with TRANSTEX, Optimus Technologies, Optimal Dynamics, and REPOWR support ESG procurement requirements from large shippers.

Covenant serves enterprise customers across retail, consumer goods, food & beverage (especially protein supply chain), industrial manufacturing, paper & packaging, and healthcare. Named relationships include John Deere (Partner-Level supplier), DHL (Managed Transportation Sustainability Carrier of the Year), ArcBest, and key automotive and sporting-goods retail accounts. Revenue is approximately $1.1-1.2B on a trailing basis, with Q1 2026 at $307.2M (+14% YoY) and a market capitalization near $1.08B. Ownership remains concentrated with Chairman/CEO David R. Parker and his family, supplemented by institutional holders including Goldman Sachs, RBC, and T. Rowe Price.

Name

Covenant

Legal name

Covenant Logistics Group, Inc.

Website

https://covenantlogistics.com

Company type

Public

Founded year

1994

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Covenant Logistics Group (NYSE: CVLG) is a publicly traded US trucking and logistics company offering dedicated, expedited, regional, brokerage, and warehousing services through a 2,600+ tractor fleet serving enterprise retail, food & beverage, manufacturing, and consumer goods customers.

Ownership category

akta.pro rank

Product category

Truckload Transportation & Logistics

NAICS

General Freight Trucking (4841), Specialized Freight Trucking (4842), Freight Transportation Arrangement (488510)

SIC

Trucking (No Local) (4213), Arrangement Of Transportation Of Freight & Cargo (4731)

akta.pro primary industry

Dedicated Transportation / Private Fleet Outsourcing (TLAIAEAA)

akta.pro secondary industries

Non-Asset-Based 3PL Services (TLAIAAAN), Real-Time Operational Visibility & Exception Management (TLAEAKAC)

Keywords

• Truckload freight services
• Dedicated contract carriage
• Managed transportation
• Freight brokerage solutions
• Warehouse distribution services

Headquarters

HQ city

Chattanooga

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Supply Chain, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Asset-Based Truckload Services: Expedited and dedicated truckload capacity through company-owned tractors and drivers. Revenue generated from contractual freight hauling with specialized equipment including refrigerated trucks. Major driver of overall revenue.
2. Managed Transportation & Freight Brokerage: Asset-light services including transportation management, freight brokerage, and overflow capacity services. Revenue from managing customer freight and arranging third-party carriers.
3. Warehousing & Distribution: Distribution center management and warehousing services with operational improvements and customer rate increases.
4. Port & Drayage: Port and drayage services for container transportation and intermodal operations.
5. Transport Enterprise Leasing (49% Equity Method): Affiliated company providing revenue equipment sales and leasing services to trucking industry. Covenant's 49% equity method investment contributing pre-tax net income.
6. Capacity Solutions: Brokerage and capacity matching services connecting shippers with carriers through network relationships.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels8 records

Core offering

Covenant Logistics Group operates a diversified transportation and logistics platform combining asset-based truckload services (expedited, regional, and dedicated capacity) with asset-light managed transportation, freight brokerage, warehousing, distribution center management, and port & drayage services. The company supports these services with a fleet of 2,600+ tractors and the Rate2Ship digital LTL quoting and booking platform, serving enterprise customers across retail, food & beverage, manufacturing, consumer goods, healthcare, and paper & packaging verticals.

Product overview

Covenant Logistics Group is a diversified transportation and logistics company offering both asset-based and asset-light services. The company operates through two main divisions: Logistics (including Dedicated Contract Carriage, Distribution Center Management, Managed Transportation, and Port & Drayage) and Transport (including Expedited Truckload, Regional Truckload, and Capacity Solutions). Supporting these core services is the Rate2Ship digital tool for instant LTL quoting. The company also operates subsidiary brands including Star Logistics (freight brokerage) and Sims Transport. Services are targeted at industries including consumer goods, retail, food & beverage, industrial manufacturing, paper & packaging, and healthcare.

Differentiator

Problem solved

Functional benefit

Brands

• Star Logistics: Truckload brokerage and capacity solutions subsidiary
• Sims Transport
• Landair
• Rate2Ship

Products and services

• Expedited Truckload Time-sensitive truckload transportation service with expedited delivery capabilities, leveraging Covenant's fleet of tractors and professional drivers to meet urgent shipping requirements for enterprise shippers.
• Regional Truckload Regional truckload transportation services for shipments within specific geographic areas, providing dedicated capacity and service reliability to enterprise customers.
• Capacity Solutions Brokerage and capacity services that connect shippers with carriers, providing flexible transportation options across Covenant's network for overflow and spot market needs.
• Dedicated Contract Carriage Customized transportation solutions where equipment and drivers are dedicated to specific customers, offering predictable capacity, service levels, and pricing for enterprise accounts.
• Distribution Center Management Warehouse and distribution center management services including staffing, operations, and optimization of supply chain workflows for enterprise customers.
• Managed Transportation Asset-light transportation management services including freight brokerage, mode optimization, and supply chain visibility for enterprise customers.
• Port & Drayage Port and drayage services for containerized freight, providing intermodal and ocean freight coordination and transportation.
• Rate2Ship Online LTL shipping quote platform providing instant less-than-truckload freight rate comparisons from Covenant's carrier network, with booking and shipment tracking capabilities.

Quantifiable outcome

• 204,000 metric tons CO₂ reduction since 2010 through sustainability partnerships
• +4 more outcomes

Named customers8 records

Segments6 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• Star Logistics SolutionscoreStrategic or Co-development Partner · 1 January 2025Acquired truckload brokerage company in 2025 driving 29% increase in managed freight revenue. Expands brokerage capabilities and overflow capacity services.
• Lew Thompson & Son TruckingcoreStrategic or Co-development Partner · 26 April 2023Acquired poultry business carrier operating over 230 trucks and 400 trailers for $100 million with $30 million earnout potential. Founded 1983, based in Huntsville. Expanded to over 500 trucks with nearly $15 million in contingent payouts within 18 months.
• AAT CarrierscoreStrategic or Co-development Partner · 1 January 2022Acquired in Q1 2022 as part of strategic growth initiatives. AAT Carriers honored with NDTA 2025 Corporate Distinguished Service Award.
• Transport Enterprise Leasing (TEL)coreStrategic or Co-development Partner49% equity method investment in Transport Enterprise Leasing, an affiliated company providing revenue equipment sales and leasing services to the trucking industry. TEL contributes pre-tax net income and provides equipment financing ecosystem supporting Covenant's fleet operations.
• TRANSTEXcoreTechnology or IntegrationSustainability partnership achieving approximately 204,000 metric tons of CO2 reduction since 2010 and generating more than $67.9 million in cumulative cost savings through renewable fuel solutions.
• LandaircoreStrategic or Co-development PartnerSubsidiary company supporting Rate2Ship platform and providing LTL services as part of Covenant's family of brands.
• Sims TransportminorStrategic or Co-development PartnerBrand within Covenant family of companies providing specialized transport services.
• MercuryGatecoreTechnology or IntegrationTransportation Management System provider enabling load tracking, execution, and visibility capabilities for Covenant's customer portal.
• UnumminorGTM or Marketing PartnerParticipating employer in Chattanooga Quantum Collaborative's pre-apprenticeship program alongside Covenant Logistics and other Tennessee employers.
• Tennessee Valley Federal Credit UnionminorGTM or Marketing PartnerParticipating employer in Chattanooga Quantum Collaborative's pre-apprenticeship program alongside Covenant Logistics.

Scale indicators14 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• RXO: Pure-play asset-light truckload brokerage spun off from XPO. Comparable to Covenant's Star Logistics brokerage and managed transportation; though RXO is brokerage-pure while Covenant is asset-based + asset-light.
• C.H. Robinson Worldwide: Largest US third-party logistics provider with truckload brokerage, managed services, and global forwarding. Comparable to Covenant's asset-light offerings at much larger scale.
• ArcBest: Larger multimodal logistics provider with LTL (ABF Freight), asset-based truckload, and managed transportation. Comparable through dedicated/managed services and as a Covenant partner in Tesla Semi pilot.

Direct peers

• Landstar System: Asset-light truckload broker with variable-cost owner-operator model. Comparable to Covenant's asset-light brokerage (Star Logistics) and capacity solutions business.
• Werner Enterprises: Mid-to-large publicly listed carrier with dedicated truckload and asset-light logistics (Werner Logistics). Closely comparable scale to Covenant with similar dedicated + brokerage mix.
• Hub Group: Intermodal and logistics services provider with dedicated, brokerage, and final mile offerings. Direct overlap with Covenant's intermodal/drayage, dedicated, and managed transportation services.
• Schneider National: Asset-based truckload, dedicated, intermodal, and logistics services provider. Highly comparable to Covenant in dedicated contract carriage and managed transportation offerings, serving retail and consumer goods customers.
• Heartland Express: Asset-based irregular route truckload carrier with dedicated and logistics services. Smaller scale than Covenant but directly comparable in business model and asset-heavy operations.
• J.B. Hunt Transport Services: Major US carrier with dedicated contract services (DCS), intermodal, and ICS brokerage divisions that mirror Covenant's dedicated and asset-light businesses. Publicly listed, similar customer vertical mix.
• Knight-Swift Transportation Holdings: Largest US truckload carrier combining asset-based truckload, dedicated contract carriage, and asset-light brokerage/3PL. Directly comparable to Covenant across all major service lines including dedicated, refrigerated, and LTL via AAA Cooper/MME.

Market position

Strengths1 record

Weaknesses1 record

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/covenantlogisticsgroup
• LinkedInlinkedin.com/company/covenantlogistics
• Instagraminstagram.com/covenant_logistics

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Covenant