Local General Freight Trucking

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 30,000 local general freight trucking companies in the US provide truckload (TL) and less than truckload (LTL) transportation services within cities and over short distances with drivers returning home each night. Trucking firms transport a wide variety of goods, but the majority is boxed or palletized. Local routes are typically less than 150 miles.

Failure to Meet Safety Requirements

Failure to meet safety regulations can result in investigations, fines, loss of license, and idled vehicles.

Emergence of Online Freight Coordinators

The local freight trucking industry is benefiting from online sites, like Uber Freight and TruckLoads, that match shippers and distribution centers with local freight carriers.

Industry size & Structure

A typical local general freight trucking company operates out of a single location, employs 9 workers, and generates about $1.3 million annually.

    • The local general freight trucking industry consists of about 30,000 companies, which employ about 264,000 workers and generate about $38 billion annually.
    • The industry is fragmented with the 50 largest firms representing just 10% of revenue.
    • Firms range from the small operations that serves a single local area using few owned trucks, to large firms that operate a network of locations across the nation using leased vehicles and servicing many local markets.
    • About two dozen large firms have networks of 10 or more establishments, which are regionally or nationally dispersed to serve specific cities.
    • Large companies include Jack Hood Transportation, Holland, Reddaway, New Penn, Cowan and EPES.
                                    Industry Forecast
                                    Local General Freight Trucking Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Dec 2, 2022 - Diesel Price Remains High
                                    • Gasoline prices have decreased significantly from the highs of mid-2022, but diesel prices are falling at a much slower pace. The national average for regular gas was only up 8 cents year over year on December 1. Diesel was $1.51 higher year over year on December 1. Experts say that winter weather is playing a key role in keeping diesel prices elevated. The oils used in heating buildings are very similar to diesel. More of these oils are diverted to heating as the temperature drops, so there is less diesel on the market.
                                    • Waymo, technology conglomerate Alphabet's driverless-vehicle unit, says it has transported more than one million pounds of Modelo and Corona beer over 220 miles a day to Houston from Dallas under a pilot program for beer, wine, and spirits conglomerate Constellation Brands. The program, which started in April, is being done with trucking company C.H. Robinson Worldwide. The freight is being delivered in Class 8 trucks using Waymo’s self-driving software and a safety driver behind the wheel. C.H. Robinson, officials say that working with Waymo is a potential long-term answer to the shortage of long-haul drivers, while Waymo sees it as a way to commercialize its 13-year investment in self-driving vehicles.
                                    • The Inflation Reduction Act, which was signed into law in August, includes the Qualified Commercial Clean Vehicle tax credit to accelerate adoption of electric medium-duty and heavy-duty trucks. A tax credit of up to $40,000 is available to help make owning an electric truck cheaper than owning a diesel one in most use cases. Urban and regional electric trucks are likely to be cost-superior to diesel ones as soon as 2023, according to some analysts.
                                    • Demand for freight transportation may decrease as retailers including Walmart, Bed Bath & Beyond, and Best Buy report that they are coping with an unexpected glut of casual clothes, kitchen appliances, and electronics. Consumers have pivoted away from spending on goods while the highest inflation in decades has crimped household budgets. Retailers are cutting prices and canceling orders to cope with excess stocks, according to Chris Caplice, executive director of Massachusetts Institute of Technology’s Center for Transportation and Logistics.
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