Trucking Continues to Dominate Freight Movement

Mike

Well-Known Member
ARLINGTON, Va., March 16 /PRNewswire-USNewswire/ -- Despite the current weakness in demand for freight transportation services caused by the nation's recession, the long-term outlook remains bright for all modes of freight transportation, the American Trucking Associations reports in its newly released ATA U.S. Freight Transportation Forecast to 2020.

IHS Global Insight, which conducted the study for ATA, projects that by 2020 total freight tonnage will grow more than 26 percent and total freight transportation revenue will grow 68 percent.

Trucks' share of total tonnage will rise gradually from 68.8 percent in 2008 to 70.9 percent by 2020. Rail's overall share (carload plus intermodal) of total tonnage will slip slightly from 14.9 percent to 14.7 percent by 2020, according to the report. Air cargo tonnage is estimated to grow from 14.5 million tons in 2008 to 22 million tons in 2020.

"Like many other industries, trucking is experiencing a very difficult time during the current economic recession," said ATA President and CEO Bill Graves. "Yet, all signs point to a strong, vital, long-term future for our industry. Trucking exclusively serves 80 percent of all communities in the U.S. for the products and goods they receive. When the recovery begins, trucks will help lead the way."

The modes included in the Forecast are truck (truckload, less-than-truckload, and private carriage), rail (carload and intermodal), domestic water, pipeline, and domestic air. The Forecast not only projects volume and revenue growth for all modes of freight transportation, it provides the underlying forecasts from which those projections are made. For example, U.S. manufacturing output, which is in the midst of a sharp contraction, will grow at an annual average rate of 3.5 percent in the second half of the forecast period. The main driver of that growth will be high-tech production, which is projected to exceed 15 percent per year from 2015-2020. The Forecast provides projections for industrial output, consumer spending, business investment, trade, employment, housing starts, vehicle sales, as well as other key drivers of freight.

The Forecast uses a 2008 baseline and projects freight tonnage and revenue by mode to 2020, as well as the number of trucks that will be needed to move the freight. New this year is a table on the percentage of freight tonnage originated by geographic region. This year's edition also includes historical data for all modes of freight dating back to 1990, and revised revenue and tonnage figures back to 2002.

The ATA U.S. Freight Transportation Forecast to 2020 can be purchased at ATA Business Solutions or by calling 1-866-821-3468 (toll free). The report is part of the ATA Business Solutions line of products, events, and services. Purchase of the Forecast, which is available in print, on CD or via downloadable PDF, includes participation in a live webinar with ATA Chief Economist and Vice President Bob Costello.

The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.


SOURCE American Trucking Associations
 
I know rail is hitting back, and they're playing hard ball. Can't remember seeing any commercials up to this past weekend regarding shipping freight via rail. Now? I've seen 3 commercials in as many days.
 
yea we have been seeing them here in Fl. But we also have noticed what we call the orange blossom which when coming out of the south has been running with more then half the cars gone.
 
they still need trucks one way or another. And a truck can alway's out run the rail. maybe not alway's by speed but direction.
 
It isn't about speed, but rather cost effectiveness. The advertisement I saw yesterday made a claim of being able to move a ton of freight over 400 miles on one gallon of fuel. One of those things that made sit up and go "HUH?!"
 
uh drrrrrrrrrrrr...........the stimulus package is spending a fortune to update the rail system for a reason. funny how now all of a sudden the rail system is in the news everywhere.
 
That's specifically for AMTRAK. As far as I know, the standard freight lines aren't in line for any of the funding.
 
It isn't about speed, but rather cost effectiveness. The advertisement I saw yesterday made a claim of being able to move a ton of freight over 400 miles on one gallon of fuel. One of those things that made sit up and go "HUH?!"

lol...I did the same thing. I actually yelled at the tv...yea, right! Did a little brainstorming on that one. Figured out it's an ad marketing scheme. I believe some wise-a$$ probably took best month-end or year-end numbers to calculate that bs presentation's perception.

When you take into consideration the total tonnage moved divided by the total amount of fuel used in the best month outta the year...or even the year-end figure...and remembering much freight moved in certain regions (such as in Cali and Illinois) is by electric trains...that figure can easily be achieved. But the rail commercial is presenting it as if that's what every train is moving freight at.

I must acknowledge though, the rail industry's accomplishment of being able to achieve an excellent job at cost management. I'm certain this is a correct figure within cost effectiveness reports. But I'm not impressed with the deceptive presentation of that information.

-ss-
 
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