Subscribe to our free, weekly email newsletter!



ATA report points to bright future for trucking (and some other modes, too)

By Jeff Berman, Group News Editor
May 20, 2011

Earlier today, my inbox pointed me to an e-mail from the American Trucking Associations (ATA), which highlighted the fact that the United States freight economy—especially trucking—is poised for liftoff following the depths of the Great Recession.

This information is gleaned from the ATA’s U.S. Freight Transportation Forecast to 2022, which was put together by the ATA, IHS Global Insight, and Martin Labbe Associates.

While I have not seen the full report yet, the data in the press release is very telling, as well as encouraging. Here it is:
-trucking comprised 81 percent of revenue and 67 percent of all tonnage in 2010;
-total freight tonnage is expected to grow by 24 percent in 2022 and revenue for the entire freight transportation sector is expected to rise by 66 percent during the same timeframe
-trucking’s total share of the freight transportation market will bump up to 70 percent by 2022, although the industry’s share of freight revenue will rise to 81.4 percent from 81.2 percent.

Looking at other modes, the report noted that:
-rail’s overall share of tonnage will fall to 14.6 percent in 2022 from 15.3% in the baseline year of 2010, but intermodal tonnage will rise 6.6 percent a year between 2011 and 2016, and 5.5 percent annually through 2022, while revenues for intermodal transportation will jump from $11.1 billion in 2010 to $30.7 billion in 2022; and
-domestic waterborne transportation will show very modest growth between now and 2022 – growing 2 percent a year until 2016, then 0.2 percent annually through 2022. And revenues for short-sea shippers will grow to $16.2 billion in 2022 from $11.1 billion in 2010.

Given the number of assets in trucking compared to other modes, these numbers are not surprising. What is surprising, I think, is the level of optimism for future freight growth.

Ok-not a total surprise, but at a time when many in the carrier and shipper communities and in the press (yes, that is me), have pointed to better days ahead (hopefully), things are obviously far from certain or definitive.

Last I checked, fuel is still high and lots of people are still looking for work. And the costs of doing business, especially in trucking, are ostensibly getting higher (hello CSA and HOS). But in any event, there are good signs, too, like improving exports and retail sales numbers, in tandem with a solid manufacturing sector.

But people much smarter than me are on record as saying volumes will grow between now and 2022, indicating that things will continue to gradually get better. The positivity train is rolling when it comes to freight’s growth prospects. Let’s get on board.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA