Long-Distance Freight Trucking in the US Industry Market Research Report from IBISWorld Has Been Updated

Renewed spending will boost demand for freight trucking, but competition will rise. For this reason, industry research firm IBISWorld has updated a report on the Long-Distance Freight Trucking industry in its growing industry report collection.

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As consumers return to spending, demand for long-distance freight will recover

Los Angeles, CA (PRWEB) October 15, 2013

During the recession, the Long-Distance Freight Trucking industry struggled through difficult operating conditions and weak demand. The decline in consumer spending drastically reduced the amount of freight that needed to be transported, causing industry revenue to fall 18.5% in 2009. Meanwhile, declines across the manufacturing sector and volatile crude oil prices further pressured the industry's financial performance during the five years to 2013. Due to rising diesel prices, operators have had to increase fuel surcharges to mitigate the prices' effects on profit and boost revenue. Despite these obstacles, the industry returned to growth in 2010. According to IBISWorld Indsutry Analyst Lauren Setar, “Revenue is expected to increase 1.3% during 2013, as a modest increase in disposable income boosts consumer spending and supports demand for long-distance freight transportation.” Because of the steep revenue decline in 2009, IBISWorld estimates that Long-Diatance Freight Trucking industry revenue will decrease at an annualized rate of 1.5% to $160.0 billion in the five years to 2013.

This industry has a low concentration, with owner-operators accounting for about 93.5% of all firms. Due to this fragmentation, intense price competition and low profit margins characterize the industry. “Because the industry has a large number of participants, companies are forced to offer competitive wages and benefits to draw in and retain the best employees,” says Setar. Therefore, IBISWorld expects that total wages will increase during the five years to 2013.

During the five years to 2018, IBISWorld projects that industry revenue will grow. However, the industry is not expected to surpass prerecession revenue levels until 2016; the majority of growth during the five-year period will be recovery. Trucking will continue to be the most widely used mode of freight transportation, but the industry will face increased competition from the Rail Transportation industry (IBISWorld report 48211) due to fluctuations in fuel prices and greater consumer concern regarding environmental sustainability.

For more information, visit IBISWorld’s Long-Distance Freight Trucking in the US industry report page.

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IBISWorld industry Report Key Topics

Long-distance freight trucking operators handle various commodities, generally palletized and transported in containers or van trailers. Establishments typically provide trucking between metropolitan areas that cross the borders of North American countries. The industry includes establishments operating as truckload or less-than-truckload carriers.

Industry Performance
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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  • Gavin Smith
    IBISWorld
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