Transportation of goods expected to increase by 23.5 percent

Transportation of goods expected to increase by 23.5 percent

pWarehouseIsle_5118812_sAmerica’s reliance on moving goods is one thing that is not likely to go away anytime soon. Chicago companies and consumers alike rely on the freight industry to ship products to customers all over the globe, stock grocery store shelves and more.

In an era where technology-fueled industries have taken center stage, transporting goods remains a critical component to keeping the world working.

Big things ahead

The U.S. Freight Transportation Forecast for the period 2013 to 2025 was recently released and indicates healthy jumps in both tonnage and revenue for transportation companies. Some of the key findings as reported in the Commercial Carrier Journal include:

  • Trucking will increase its market share of goods moved from 69.1 percent to 71.4 percent.
  • Rail will decrease its market share of goods moved from 14.5 percent to 13.8 percent.
  • The biggest increase in tonnage moved will be seen between now and 2019 with trucking moving 3.5 percent more tonnage each year until that date.
  • Rail will increase tonnage moved by 5.5 percent annually until 2019.

After 2019, the amount of tons moved each year will still increase but by lesser amounts. For trucking, the growth between 2019 and 2025 is expected to be at 1.2 percent per year and for rail, growth projects show 5.1 percent annually.

Tonnage translates to revenue                                                                 

Certainly an increase in the amount of tonnage moved is expected to yield an increase in revenue during the same period. In 2013, the transportation industry moved 14.01 billion tons of materials and is expected to move as much as 17.3 billion tons in 2025—an increase of 23.5 percent. Along with that forecast comes the projected increase in revenue by 72 percent.

Unique opportunities and challenges

Changes such as the expanded Panama Canal will create opportunities for growth for some truckers or other companies while creating challenges or even losses in business for others. Additionally, the boost that for-hire carriers have experienced may slow slightly but is still expected to continue. Those businesses that put effort into logistics will be well-poised to shine in the coming years.

Not a stagnant industry

Transportation has long been the backbone of American commerce. The industry as a whole has seen many changes and will experience more going forward. The businesses that rise to the top in this segment are those that are willing to adapt and meet the new opportunities that present themselves along the way.

 

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