Watching trucking industry statistics and analyzes can show you the health of American economy, as 70% of all the fright in the country is shipped by the industry. When you know the forecast for the year and you are a part of this industry, it can let you know what to expect and plan accordingly, making the right decisions.
The economy is getting better, so the number of truckloads will increase in 2016 meeting the growing demand. According to the statistics, 81% of the revenue in the shipping sector was brought by the trucking companies. The revenue is expected to steadily increase by 66% by 2022.
In 2016 LTL rates will also go up. For instance, in the end of 2015 FedEx and Con-Way Freight, the largest LTL freight carriers, raised their rates by 4,9%.
The energy costs are expected to stay low. The price for diesel fuel will increase a bit to $3,12 per gallon. Oil prices can fluctuate in 2016 but the prediction is they will stay at the low level.
The trucking rates are expected to go upward. The prediction comes not just from the healthy growth of American economy, but of the world economy as well. The analysts say the consumers will create the driver for this growth.
There are negative predictions, too. The driver shortage that has become a great issue for the trucking industry is expected to become even worse in 2016. The shortage of 48,000 is predicted for this year, and it can turn into 175,000 by 2024.
The capacity of the shipping industry will reach its maximum resulting in raising rates or shippers building their own private fleets so they have no need to look for a trucking company to accommodate their schedule.
The tonnage is expected to fluctuate. It is normal because consumer demand fluctuate as well according to the seasonal changes. Trucking industry’s tonnage, as the experts predict, will drop slightly. Their tonnage share is expected to be 64,6% in 2024 comparing to 68,8% in 2014.
In general, many trucking companies will probably expand using the situation and add new trucks to their fleet, and many of these trucks are expected to be Class 8 truck increasing their number to 3,98 million by 2024. The companies will hire more highly trained drivers to meet the challenges the year will bring. It is already happening and the trend is expected to continue.
Glad to hear the positive outlook. I keep telling my friends that trucking is an industry to watch. Yes, you have to work hard and it involves some sacrifices, but you can’t put a price on job security.
Thank you so much for this article. I have been thinking about a new career while I still have the chance to start one and what you have shared is making me want to lean in the direction of being a truck driver. If there is going to be a shortage of drivers while companies like FedEx and Con-Way Freight are raising rates, that means drivers are going to be in demand and anyone looking to step out on a new career or career change should think about the future of trucking.
Happy that the American economy is getting better. It makes sense proof that it is can be seen if you watch the trucking industry. As far as profits are concerned, it’s good that the industry is increasing but energy costs aren’t going to be much of an impact.