Long Distance 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 57,300 long distance general freight trucking companies in the US provide truckload (TL) and less-than-truckload (LTL) transportation services between cities and across the country. TL trucks carry a load for a single customer, transporting the load directly to its destination. LTL trucks carry goods for more than one customer and make multiple stops to drop-off and pick-up freight. These trucking firms transport a wide variety of goods and may also provide services such as warehousing, packaging, and customs brokering for international transport. Long distance trips typically exceed 250 miles.
Volatility of Fuel Costs
Fuel consumption is a major expense for trucking companies, with nine miles to the gallon of diesel considered a good MPG range.
Rising Need for Drivers
Because of truck drivers’ difficult lifestyle and time spent away from home, many companies have trouble finding and retaining qualified long-haul drivers.
Industry size & Structure
A typical long distance general freight trucking company operates out of a single location, employs fewer than 20 workers, and generates about $4-5 million annually.
- The long distance general freight trucking industry consists of about 57,300 companies, which employ about 804,000 workers and generate about $252 billion annually.
- The truckload (TL) segment of the industry accounts for 88% of firms and 71% of industry revenue. The less than truckload (LTL) segment accounts for 12% of firms and 29% of industry revenue.
- The TL segment is fragmented with the 20 largest firms representing 30% of the segment’s revenue. The LTL segment is concentrated with the 20 largest firms representing 77% of the segment’s revenue.
- Large companies include Schneider, Old Dominion, YRC Freight, Swift Transportation, JB Hunt, and Werner Enterprises.
Industry Forecast
Long Distance General Freight Trucking Industry Growth
Recent Developments
Dec 17, 2024 - Industry Leaders Hope For Recovery In 2025
- Carriers are relying on cost-cutting measures, operational efficiency, and strategic revenue opportunities to stay ahead in a difficult freight market, according to Transport Topics. Some industry leaders are cautiously optimistic that conditions will improve in 2025. Supply chain solutions firm NFI CFO Steven Grabell said that he expects the current low-price environment to lead to a reduction in trucking capacity, as some smaller or marginal players may not be able to sustain operations. The reduction will help balance supply and demand. Grabell noted uncertainty related to the election of Donald Trump as US President, however. “While it remains difficult to anticipate the magnitude of the impact of tariffs and other economic policies on our industry, we feel confident that we’re nearing the bottom of the freight downturn,” Grabell said.
- Truck freight shipments and spending continued decreasing in the third quarter, albeit at a slower pace than earlier this year, according to the US Bank Freight Payment Index. Shipments decreased 1.9% compared to the previous quarter while spending decreased 1.4%. It was the ninth consecutive quarterly decrease in volume but the smallest decrease in more than a year.
- The total cost of ownership of a battery electric long-haul truck will likely be lower than that of a diesel one in the US by 2030, according to the International Council on Clean Transportation. A Council report looked at a number of states including California, Georgia, and New York, and found that the relatively high upfront cost for electric trucks are balanced out by lower operating expenses. The entire transportation sector is slowly shifting toward electrification, according to the report. Electric vehicles made up 18% of sales of new passenger vehicles in 2023.
- Long distance general freight trucking industry employment and average wages for nonsupervisory employees increased slightly during the first 10 months of 2024, according to the US Bureau of Labor Statistics (BLS). Long distance general freight trucking moderately decreased their prices during the first 10 months of 2024, according to the BLS. Heavy duty truck sales have rebounded from a 2020 pandemic-driven trough to pre-pandemic levels, according to the US Bureau of Transportation Statistics. Long distance general freight trucking industry sales are forecast to grow at a 3.56% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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