US Transportation and Warehousing Sector

The 237,525 transportation and warehousing establishments in the US provide the transport of commodities, goods, cargo, and passengers by land, sea, or air as well as temporary and long-term storage for goods.

Variable Fuel Costs

Fuel is a major expense, and the cost can vary significantly based on global market conditions.

Supply Chain Interdependence

The transportation and warehouse sectors are integral parts of the supply chain so the sectors are dependent on the effectiveness of the other links, which include suppliers, manufacturers, wholesalers, importers, exporters, e-commerce, and distributors that may be located anywhere in the world.

Aug 18, 2026 - Ford and GM Clash Over Tariffs and US Manufacturing

• Ford and General Motors are intensifying their century-old rivalry as US trade policy creates new winners and losers across their increasingly different supply chains. Ford, which assembles more vehicles and employs more factory workers in America, is pushing for higher tariffs on imported vehicles, particularly GM’s lower-priced models built in South Korea, while seeking relief from steep aluminum duties. GM counters that it contributes more to the overall U.S. workforce and criticizes Ford’s reliance on Chinese battery technology, while promoting its own domestic battery development. The companies have also clashed over federal support and proposed restrictions on Chinese EV components. Despite these differences, Ford and GM remain aligned on preserving the US-Mexico-Canada Agreement and favoring North American-made vehicles and parts over imports from overseas markets.
• As new customer demand has moderated, self-storage operators are placing greater emphasis on retaining existing tenants to support occupancy and revenue. Industry data show that 51% of storage renters stay less than a year, while just 17% remain for three to five years, giving operators a significant opportunity to increase revenue by extending customer stays. In response, many facilities are investing in online account management, mobile apps, automated payments, and more responsive customer service to improve the tenant experience. Operators are also taking a more measured approach to rent increases, recognizing that retaining an existing customer is often more cost-effective than replacing one. As a result, metrics such as average length of stay, move-out rates, and tenant lifetime value are becoming increasingly important alongside traditional occupancy and rental rate measures.
• American companies are increasingly treating supply chain disruption as a permanent business reality rather than a temporary problem, prompting investments in more flexible logistics strategies. According to the Council of Supply Chain Management Professionals' 2025 State of Logistics Report, US logistics costs fell 1% to $2.4 trillion in 2025, or 7.8% of gross domestic product, largely because ocean shipping rates declined as new vessel capacity entered the market. That relief is proving short-lived, however. Trucking rates, warehousing costs, inventory expenses, and ocean freight prices have climbed again in 2026 amid tariff uncertainty, conflict in the Middle East, and higher fuel costs. As a result, companies are diversifying ports, blending long-term and spot shipping contracts, and placing greater emphasis on contingency planning, supply chain visibility, and faster decision-making to improve resilience rather than simply minimize costs.
• Rising trucking rates, higher diesel prices, and tighter truck capacity are driving more US retailers and manufacturers to shift freight from highways back to rail. According to the Association of American Railroads, North American intermodal traffic rose 6% year over year in May, the strongest increase since March 2025, as shippers sought lower transportation costs. While rail shipments take longer and require truck transfers for final delivery, intermodal service can reduce shipping costs by 10% to 20%, according to Redwood Logistics, and remains far cheaper than long-haul trucking. Investments by railroads and logistics providers have also improved reliability and transit times, making intermodal a more attractive long-term option rather than just a temporary cost-saving measure. The shift is especially pronounced on US-Mexico freight lanes, where immigration enforcement has tightened truck capacity and further increased demand for rail alternatives.

Industry size & Structure

The transportation and warehousing sector is comprised of 237,525 firms that employ 6.1 million workers and generate $1.4 trillion in annual revenue, according to government sources.

• The transportation and warehousing sector represents 3.3% of the nation's Gross Domestic Product (GDP) and employs 4% of the country's workers.
• The sector is concentrated at the top with the 20 largest firms representing 34% of revenue, but it is fragmented at the bottom.
• In addition to employer establishments, the transportation and warehousing sector has about 4 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are transit and ground passenger transportation (52%); truck transportation (27%); couriers and messengers (14%); and support activities for transportation (6%). The owners of nonemployer establishments typically perform the work and may outsource support functions like marketing and accounting.
• The transportation and warehousing sector gained about 12,000 firms in 2022, which equals a growth rate of about 6% of existing firms, according to the US Census.
• Employment in transportation and warehousing occupations is projected to grow by 6.5% between 2021 and 2031, slightly above the 5.3% projected growth for all occupations in that period