Truckload Carriers
Description
Companies in this industry provide long-distance transportation by truck of general freight, in which freight from a single shipper makes up a truckload. Major companies include JB Hunt, Schneider National, Swift Transportation, and Werner Enterprises (all based in the US), along with TFI International (Canada).
The global freight trucking market is forecast to reach about $4.5 trillion by 2031, growing at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2031, according to Allied Market Research. However, the strong demand during the pandemic appears to be waning, as inflation and sagging consumer sentiment slow an inventory restocking rush that has swamped distribution networks, according to the US Bank.
The US truckload carriers industry includes about 40,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $110 billion.
Full truckload (TL) shipments have trailers dedicated to a single shipper's cargo. In contrast, less-than-truckload (LTL) carriers transport the consolidated cargo of several shippers on one truck, dropping goods off at multiple delivery points. LTL carriers are covered in a separate industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by consumer spending and manufacturing output. The profitability of individual companies depends on efficient operations. Large companies have advantages in account relationships, bulk fuel purchasing, fleet size, and access to drivers. Small operations can compete effectively by providing quick turnaround, serving a local market, or transporting unusually sized goods. The US industry is fragmented: the 50 largest companies account for about 40% of industry revenue.
Trucking competes with other forms of cargo transportation, including rail, air, and water. However, the shift toward intermodal transportation means that these modes of delivery are often more complementary than competitive.
PRODUCTS, OPERATIONS & TECHNOLOGY
A truckload (TL) customer typically loads a trailer full (or nearly full); the carrier then transports the container, and a receiver unloads the contents. Shipments are usually delivered within one or two days, depending on the distance.
Major revenue sources for truckload carriers include the transportation of boxed, palletized, and other packaged goods, which account for more than 50% of revenues, followed by the transportation of other goods by road (about 15%) and transportation of climate-controlled boxed, palletized, and other packaged goods.
Major costs include drivers, diesel fuel, and repairs. Trucking companies often impose surcharges to offset increases in fuel prices. Large companies generally perform their own truck maintenance; small ones may outsource this function.
The global freight trucking market is forecast to reach about $4.5 trillion by 2031, growing at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2031, according to Allied Market Research. However, the strong demand during the pandemic appears to be waning, as inflation and sagging consumer sentiment slow an inventory restocking rush that has swamped distribution networks, according to the US Bank.
The US truckload carriers industry includes about 40,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $110 billion.
Full truckload (TL) shipments have trailers dedicated to a single shipper's cargo. In contrast, less-than-truckload (LTL) carriers transport the consolidated cargo of several shippers on one truck, dropping goods off at multiple delivery points. LTL carriers are covered in a separate industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by consumer spending and manufacturing output. The profitability of individual companies depends on efficient operations. Large companies have advantages in account relationships, bulk fuel purchasing, fleet size, and access to drivers. Small operations can compete effectively by providing quick turnaround, serving a local market, or transporting unusually sized goods. The US industry is fragmented: the 50 largest companies account for about 40% of industry revenue.
Trucking competes with other forms of cargo transportation, including rail, air, and water. However, the shift toward intermodal transportation means that these modes of delivery are often more complementary than competitive.
PRODUCTS, OPERATIONS & TECHNOLOGY
A truckload (TL) customer typically loads a trailer full (or nearly full); the carrier then transports the container, and a receiver unloads the contents. Shipments are usually delivered within one or two days, depending on the distance.
Major revenue sources for truckload carriers include the transportation of boxed, palletized, and other packaged goods, which account for more than 50% of revenues, followed by the transportation of other goods by road (about 15%) and transportation of climate-controlled boxed, palletized, and other packaged goods.
Major costs include drivers, diesel fuel, and repairs. Trucking companies often impose surcharges to offset increases in fuel prices. Large companies generally perform their own truck maintenance; small ones may outsource this function.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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