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
Jul 15, 2024 - Prices Decrease
- Long distance general freight trucking firms decreased prices slightly during the first five months of 2024, according to the US Bureau of Labor Statistics. 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.
- Containerized imports to the US increased substantially during January, February, and March from the corresponding months of the previous year, up 10%, 21%, and 23%, respectively, according to The Waterways Council. The first quarter is typically the slowest period for containerized imports. Importers anticipating additional disruptions in the Red Sea and potential disruptions due to global political instability are focusing on replenishing retail inventories and preparing peak season stocks, according to The Waterways Council. Trucking firms may benefit from the import surge.
- The latest wave of AI appears to be at a tipping point where broad adoption can begin and ultimately become mainstream in the freight transportation industry, according to Tom McLeod, CEO of McLeod Software. The industry is currently in the earliest stages of implementing the latest advances in AI but the potential use cases are diverse and virtually endless, encompassing driver safety, worker efficiency, vehicle maintenance and business intelligence to name a few. Major efforts include making unstructured data more useful, adding generative AI tools to streamline processes, and working alongside other tech vendors to implement new capabilities through software integrations.
- Gridlock in the US Congress may prevent the passage of meaningful truck-related legislation in 2024, according to FreightWaves. “We’re likely to see an already slow and increasingly paralyzed Congress slow further as both parties try to prevent the other from notching significant wins,” P. Sean Garney, co-director at Scopelitis Transportation Consulting, which specializes in trucking regulations and legislation, told FreightWaves. “Outside of a few must-pass pieces of legislation, I don’t expect much to get done unless an unexpected crisis emerges. Randy Mullett, a transportation consultant and principal of Mullett Strategies, says that regulation rather than legislation will be the driving force behind trucking policy. “... the regulatory agencies are going to be smelling blood in the water, because we may have a change in administration, and if so, they’ll need to get any regulations out sooner rather than later,” Mullett said, to give final rules time to take effect before a new administration can attempt to repeal them. Proposed rules to tighten standards for independent contractors and on carbon emissions from heavy trucks may be among the few initiatives that advance.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.