American Trucking Sector Predicts Massive Growth
American Trucking Association (ATA) recently compiled the U.S. Freight Transportation Forecast, in which it predicted that the trucking sector will experience massive growth boost by the year 2022. In 2010, trucking and logistics provider companies accounted of 81% of net revenue, and 67% tonnage of all transportation corporations. The reported forecast also predicted that the composite revenue for the industry will increase nearly 66% and tonnage will further rise by 24% by 2022.
This forecast, by the agency, can be used to guide supply chain management companies, and help them to maintain and develop logistics strategies to grow further. Transportation logistics cannot only help the fleet enterprises improve their revenue generation but will also be crucial to enhance shipping mechanisms and delivery capabilities. Last year, the transportation industry tried to maintain its successful streak by making a lot of changes in the technology sector. Several benchmarking exercises were adopted by the logistics providers and transporters to save considerable budget from supply chain management.
Steve Banker, in an article of Logistics Viewpoints, explained the operations of a company which conducted a lane benchmarking exercise to find out how the process can be improved. The results were generated by carrying out strategic procurement events and after the enterprise successfully collected its final bids, it recounted a massive saving of 15% on its composite freight expenditure. Banker explains that this exercise should be adopted by all corporations to maintain a premium on safety, communication and clarity, which can help the business grow.
ATA also predicts that the intermodal transport has the potential to grow at a rate of 6.6% in a single year until 2016, after which it will continue to increase by 5.5%, until 2022. The Intermodal Association of North America is hopeful that the recent changes in trends, regarding the trucking corporations’ interest in technology, automation, fuel efficiency, driver testing and communication connectivity systems, has allowed them to reap the benefits, afforded to them, by increased consumer demand and insured export policies. The agency further reported that the trucking sector experienced a 9% increase in volume, in the first financial quarter of 2011, and has managed to maintain its upward rise.
The ATA has also forecasted the decline of the rail transportation industry, by stating that it will see a massive decrease in the tonnage and revenue groups. It may not be presumptuous to consider that by 2022, rail transportation will only be responsible for 14.6% of the total delivery and commodity transportation on domestic levels. Compared to the numbers, reported in 2010, the rail industry was responsible for 15.3% of overall tonnage and volume of goods transportation across the country. According to the numbers reported this year, the massive decline is due to the rise in popularity over the truck and fleet companies, who are providing their customers with the added benefit of geographical variability and flexibility, as well as time efficiency. – See more at: http://truckernews.com/american-trucking-sector-predicts-massive-growth-p636-90.htm#sthash.eJ2vOIKr.dpuf