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Sept/Oct 2005


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Covenant Delivers on What it Promises
Fleet recruits O/Os with miles, great benefits.
By Bill Hudgins

A "covenant" is a promise made between two parties. That aptly describes the relationship between Covenant Transport Inc. of Chattanooga, Tenn., and its drivers and owner-operators. You promise to run hard, and the 18-year-old fleet pledges to get you miles and reward you well.

After 32 years on the road – the last five with Covenant – O/O Roger Glispie speaks from experience when he says the fleet lives up to its promise. He and his wife, Kathy, own R and K Trucking and have leased its three trucks to Covenant. One of their sons, Roger Jr., drives for them.

"I came to Covenant after the last fleet I was with went out of business," Glispie said. "They seemed to have the best lease deal and benefits. Covenant is one of the few companies that does what it says it will do. If I ever have a problem, they work it out in just a few minutes."

Covenant Transport is one of the 10 largest truckload carriers in the U.S., with the industry's largest fleet of team drivers. For the last nine years, it has hauled more transcontinental freight to and from the West Coast – and logged more miles per truck – than any other truck load carrier.

David and Jacqueline Parker founded Covenant in 1985 with 25 tractors and 50 trailers. The publicly-owned fleet (CVTI, Nasdaq) now runs about 3,700 company tractors and 7,000 53-foot vans and reefers and had 2001 revenue of $547 million.

As of November 2002, about 365 owner-operators were leased to Covenant and the company wants more, said Rick Story, fleet supervisor. "They are generally more experienced and established operators who know the business and don't require as much training as someone fresh out of school," Story said.

Covenant is a driver-centered company, Story said. "That's something we do better than most and is a key to our success. Our support systems are all geared to keeping the drivers satisfied, because when they are happy, they do a better job and ultimately the company does, too."

When a driver has a problem, it's seen as an opportunity to help. If a dispatcher or fleet manager can't resolve the issue, the driver's representative in the driver relations department gets involved. Top management meets weekly to make sure Covenant is doing its best to keep drivers happy.

Covenant also strives to maintain good communication with drivers. David Parker tapes a monthly "state of the company" address that's distributed at the 16 Covenant terminals. He talks about company news and performance, as well as the outlook for freight, the economy and other matters of interest to drivers. Parker also personally reviews comments on the company's Suggestion Sheets, which have generated some of the fleet's perks.

Perks abound, and O/Os have just about the same choice of benefits as company drivers. These include comprehensive life and health insurance plus a prescription card available first day on truck for drivers and families; disability and occupational accident insurance; vision and dental insurance after 90 days; payment by ComCard, direct bank deposit or credit union; 401(k) after six months with matching funds; paid vacation; rider and pet policies.

Perks are great but a driver's first concerns are miles and loads. Glispie says he and his wife as a team average about 250,000 miles a year, while his solo drivers get about 125,000. "If you're willing to work hard, you don't have to worry about loads," said Glispie, who stays out about three weeks at a time, then takes a week off.

Covenant pays owner-operators 83 cents per mile (loaded or unloaded dispatched miles), with about 5.5% average deadhead miles. It advances up to 40% of trip pay after the trailer's loaded. Most freight is no-touch; it pays $75 for any loading and unloading. It also pays $45 for pick-ups and drop-offs except for first and last.

O/Os have access to the authorized fuel network, with fuel taxes reported and paid when using the fuel stops.The fleet pays tolls with receipts and also loaded scale tickets. There's no escrow and trailers are furnished at no charge. Covenant provides base plates and permits, as well as public liability, property damage and cargo insurance while your truck is hooked to a trailer.

Owner-operators must be at least 22 years old, with one year OTR experience and a good driving record; pass a DOT physical and drug-alcohol screen; and have no DUI or DWI convictions or major preventable accidents in the past five years, and no felony convictions.

"There's never a hassle, and they have been good to us," Glispie said. "They have just about anything an owner-operator could wish for." For more information, visit covenanttransport.com or call (888) MOREPAY (667-3729).



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