U.S. trucking industry volumes to grow 4.2 pct in 2018 -forecast

Covenant Logistics

06/09/2018 14:00

By Lisa Baertlein
    LOS ANGELES, Sept 6 (Reuters) - U.S. truck transportation
volume will rise 4.2 percent in the United States in 2018,
fueled in part by a manufacturing industry rebound and a healthy
economy, according to a new forecast from the American Trucking
Associations (ATA).
    That growth rate is expected to ease to 2.3 percent per year
from 2019 through 2024, but offer little relief to shippers
struggling through a U.S. trucking shortage, ATA Chief Economist
Bob Costello said.
    "Capacity will remain tight as the economy grows, spurred by
traditional drivers of truck freight: manufacturing,
construction and consumer spending," Costello said.
    Major trucking companies, including Covenant Transportation
Group Inc  CVTI.O  and Knight-Swift Transportation Holdings
Inc's  KNX.N  Knight Transportation, have sharply raised prices
as demand outpaces supply in a trucking market constrained by a
driver shortage and other factors. 
    ATA does not track or forecast shipping rates, but does
monitor rate proxies such as average revenue per mile excluding
fuel surcharges.
    "Right now ... average revenue per mile is increasing at its
highest rate, certainly since the early 1990s when data becomes
available, but probably ever," Costello said.
    Food companies are among the hardest hit by rising trucking
costs. Distributor US Foods Holding Corp  USFD.N , breakfast
cereal maker Kellogg Co  K.N  and meat processor and marketer
Tyson Foods Inc  TSN.N  recently reported higher shipping and
logistics costs had bitten into profits.    
    Costello said relief will come if "we significantly increase
the number of drivers in short order, which is very unlikely; or
the economy slows down significantly, which will eventually
happen, but not any time soon."
    The U.S. trucking industry generated more than $700 billion
in revenue in 2017, accounting for 79.3 percent of overall U.S.
freight revenue and 70.2 percent of tonnage. 
    Total truck tonnage, including for-hire and private carrier
operations, hit 10.8 billion tons in 2017, the highest on
record, according to IHS Global Insight. As of last year, total
truck tonnage was up 26.4 percent from the low in 2009.
    

 (Reporting by Lisa Baertlein in Los Angeles
Editing by Chris Reese)
 ((lisa.baertlein@thomsonreuters.com; +1 213 955 6742; Reuters
Messaging: lisa.baertlein.thomsonreuters.com@reuters.net))