Covenant Targets 75%–80% of Expedited Capacity for Dedicated Work.
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Covenant Logistics Group, Inc. is targeting dedicated arrangements for 75%–80% of its Expedited capacity by year-end, backed by multiyear contracts as it seeks to make its business model more durable. Some portfolio business could reach operating ratios in the 80s, management said, with around 85% or lower representing a stronger result. An operating ratio measures operating expenses as a share of revenue, so a lower ratio is better. Management did not say that level applied to the entire Expedited segment. Covenant expects Transport Enterprise Leasing (TEL) to generate $3.7 million to $4 million in fourth-quarter pretax income.
Source: TokenPost
