Covenant pays poultry carrier another multimillion-dollar performance award
Summary
• Covenant’s Q4 salaries, wages and related expenses increased by 13 cents per total mile — about 10% — year-over-year, driven primarily by “significant growth in our dedicated protein supply chain business,” President Paul Bunn said in the report. Earnouts can help parties agree on the value of a company, where future results of an acquisition trigger payouts. Covenant has invested in its Arkansas-based poultry subsidiary since the acquisition, with executives announcing plans last year to more than double its fleet to over 500 trucks based on contracts already signed. “As we grow our dedicated fleet in niche services, it requires hiring and retaining skilled drivers to operate specialized equipment on loads that typically have a shorter length of haul, resulting in higher costs on a per total mile basis,” Bunn said. The truckload segment’s operating cost rose 18 cents, or 6.6%, on a per total mile basis, the carrier reported.