US Truckload Industry: An Analysis
Since the third quarter of 2006, number of factors have worked against the growth of the truckload industry. Factors that stymied the growth of the truckload industry were falling automobile sales, meltdown in the housing sector, sluggish growth in retail sales and overall slowdown in the US economy.
As a result of these factors, the trucking industry in the United States has suffered from weak volumes and a difficult pricing environment. The industry is currently challenged with lower demand and higher equipment availability as a result of many truckload companies pre-buying tractors before the more restrictive engine regulations took effect in 2007. Still the truckload industry is highly competitive based primarily upon freight rates, service, and equipment availability.
Due to the increasing challenges posed by significantly slower U.S. economic growth, the truckload industry is not expected to show any relevant growth in the year 2008 and 2009. However, after this period, the industry is likely to see sustained growth with a number of fiscal and monetary stimuli enacted like the US$700 billion Troubled Asset Relief Program.
The truckload industry is also facing supply-demand imbalance of capacity. But with the exit of small and underperforming carriers, declining orders for new tractors and trailers and downsizing of fleet by leading truckload companies is expected to bring a favorable balance of supply and demand in the future.
Further, with retail gasoline prices seeing around 40% fall in the last quarter of the calendar year 2008 from the early July 2008 highs, consumers have now extra discretionary dollars to spend and carriers will have meaningful operating ratio and higher profitability.
The report titled “US Truckload Industry: An Analysis” examines the current status of the truckload industry. It analyzes the growth of the truckload industry in the United States over the years and the factors that are recently obstructing its growth. Further, major trends in the industry and the challenges faced by the truckload carriers have been assessed. The report also presents the competitive landscape, performance of the leading companies and strategies adopted by them in this difficult economic environment.
As a result of these factors, the trucking industry in the United States has suffered from weak volumes and a difficult pricing environment. The industry is currently challenged with lower demand and higher equipment availability as a result of many truckload companies pre-buying tractors before the more restrictive engine regulations took effect in 2007. Still the truckload industry is highly competitive based primarily upon freight rates, service, and equipment availability.
Due to the increasing challenges posed by significantly slower U.S. economic growth, the truckload industry is not expected to show any relevant growth in the year 2008 and 2009. However, after this period, the industry is likely to see sustained growth with a number of fiscal and monetary stimuli enacted like the US$700 billion Troubled Asset Relief Program.
The truckload industry is also facing supply-demand imbalance of capacity. But with the exit of small and underperforming carriers, declining orders for new tractors and trailers and downsizing of fleet by leading truckload companies is expected to bring a favorable balance of supply and demand in the future.
Further, with retail gasoline prices seeing around 40% fall in the last quarter of the calendar year 2008 from the early July 2008 highs, consumers have now extra discretionary dollars to spend and carriers will have meaningful operating ratio and higher profitability.
The report titled “US Truckload Industry: An Analysis” examines the current status of the truckload industry. It analyzes the growth of the truckload industry in the United States over the years and the factors that are recently obstructing its growth. Further, major trends in the industry and the challenges faced by the truckload carriers have been assessed. The report also presents the competitive landscape, performance of the leading companies and strategies adopted by them in this difficult economic environment.
1. INDUSTRY STRUCTURE
1.1 Industry Definition
1.2 Trucking Models: Asset-Light versus Asset-based
2. TRUCKLOAD MARKET: AN ANALYSIS
2.1 Truckload Market: Size and Growth
2.2 Trucking Companies: Fleet Size
2.3 Truckload Market: Long Haul versus Regional
3. MARKET TRENDS
4. MARKET CHALLENGES
5. FACTORS AFFECTING GROWTH OF TRUCKLOAD INDUSTRY
6. COMPETITIVE LANDSCAPE
6.1 Leading Players – Revenue Comparison
6.2 Comparison of Operating Ratios
6.3 Major initiatives – leading truckload players
7. LEADING COMPANIES
7.1 J.B. Hunt Transportation Services
Company Profile
Primary Customers
Business Strategies
7.2 Werner Enterprises
Company Profile
Primary Customers
Business Strategies
7.3 Knight Transportation
Company Profile
Primary Customers
Business Strategies
7.4 Covenant Transportation Group
Company Profile
Primary Customers
Business Strategies
7.5 Heartland Express
Company Profile
Primary Customers
Business Strategies
8. MARKET FORECAST
FIGURES AND TABLES
Figure 2.1: US Freight Transportation Market - Size by Segment: 2007
Figure 2.2: US Truckload Market Size: 2002-2007
Figure 2.3: Percentage revenue break-up of non-local trucking – 1990 vs. 2007
Figure 2.4: Truckload Market: For-hire & Private Fleet Split - 2007
Figure 2.5: US Trucking Industry: Breakdown by Fleet Size: 2007
Figure 2.6: US Truckload Market: Breakdown by Capacity: 2007
Figure 4.1: Demand and supply of drivers: 2004 - 2012
Figure 4.2: Comparison of Operating Ratios of Major Carriers: 2001-2007
Figure 5.1: Retail On-Highway Diesel Prices: Dec’07 – Dec’08
Figure 7.1: J.B.Hunt – Revenue breakdown by Industry: 2007
Figure 7.2: Werner Enterprises – Revenue breakdown by Industry: 2007
Figure 8.1: US Truckload Market Revenue Forecast: 2008-2010
Table 6.1: Leading Companies: Revenue Comparison
Table 6.2: Leading Companies: Comparison of Operating Ratio
Figure 2.1: US Freight Transportation Market - Size by Segment: 2007
Figure 2.2: US Truckload Market Size: 2002-2007
Figure 2.3: Percentage revenue break-up of non-local trucking – 1990 vs. 2007
Figure 2.4: Truckload Market: For-hire & Private Fleet Split - 2007
Figure 2.5: US Trucking Industry: Breakdown by Fleet Size: 2007
Figure 2.6: US Truckload Market: Breakdown by Capacity: 2007
Figure 4.1: Demand and supply of drivers: 2004 - 2012
Figure 4.2: Comparison of Operating Ratios of Major Carriers: 2001-2007
Figure 5.1: Retail On-Highway Diesel Prices: Dec’07 – Dec’08
Figure 7.1: J.B.Hunt – Revenue breakdown by Industry: 2007
Figure 7.2: Werner Enterprises – Revenue breakdown by Industry: 2007
Figure 8.1: US Truckload Market Revenue Forecast: 2008-2010
Table 6.1: Leading Companies: Revenue Comparison
Table 6.2: Leading Companies: Comparison of Operating Ratio
