Products and Services:
Safe and secure transportation of goods and products.
Activities in the industry can be broken up into two general groups: Truckload freight, or consignments weighing more than 10,000 pounds,
and less-than-truckload (LTL) freight, which encompasses consignments less than 10,000 pounds.
Although some companies specialize in one segment, most operators provide truckload and LTL services.
These activities are often coupled with other transportation services, such as logistics.
Consequently, many large firms also generate revenue that is not directly associated with this industry.
As the demand from manufacturing and the demand from wholesale trade increase, long-distance freight trucking is expected to benefit.
This industry is dominated by truckload carriers.
Truckload carriers dedicate full trucks to one customer and make door-to-door deliveries of goods, making this segment less labor intensive than LTL.
Because these carriers typically travel directly to the place of delivery, they do not need a network of terminals.
Truckload carriers also have relatively low start-up costs since firms do not need intermediate freight-consolidation facilities.
This segment of the industry involves substantial competition, and labor is typically not unionized.
IBISWorld estimates that more than 80.0% of industry establishments are truckload carriers, which contribute 58.8% of total revenue.
The largest truckload carriers generally have low profit margins and market shares and generate less revenue than LTL carriers.
This segment has not changed significantly as a share of revenue over the past five years.
LTL carriers take partial loads from multiple customers on a single truck and then route
the goods through a series of terminals where freight is transferred to other trucks with similar destinations.
LTL transportation providers often consolidate and deconsolidate numerous orders at
individual service centers based on time sensitivity of the freight being shipped.
LTL is more labor intensive because shipments are loaded and unloaded multiple times;
the segment accounts for 35.0% of industry employees and 40.0% of wages.
Although orders are consolidated when possible, it is largely dependent on the demand for a particular destination.
With the improvement of helpful computer systems like GPS,
operators have been able to coordinate and plan shipping freight faster and with greater accuracy.
Increased efficiency largely benefits the LTL segment, especially as fuel prices rise and operators strive to cut costs.
Consequently, IBISWorld estimates that LTL services have grown as a percentage of industry revenue in the five years to 2012, representing 31.7%.
Many trucking companies have been expanding the range of services offered to secure their place in global supply chains.
An emerging segment within the industry is value-added services,
including door-to-door transportation, customs brokerage, packing, logistics consultation services and other related activities.
Additional services include warehousing, distribution, repacking, storage and freight forwarding.
IBISWorld expects that these services will increase as a proportion of industry revenue over the next five years;
however, value-added services will be limited to large and medium-sized operators and truck transportation will remain the largest revenue earner for major players.
Revenue from other segments is estimated to account for 9.5% of revenue.