OD6146 General Freight Trucking (Truckload) Industry Report

INDUSTRY REPORT OD6146
General Freight Trucking (Truckload)
Volatile cargo: Fuel price fluctuations and driver shortages have complicated the
industry's growth
Dan Cook | June 2021
IBISWorld.com 1-800-330-3772 [email protected]

General Freight Trucking (Truckload) June 2021
Contents
COVID-19 (Coronavirus) Impact Update.............................3 COMPETITIVE LANDSCAPE.......................... 21
ABOUT THIS INDUSTRY.................................. 5 Market Share Concentration............................................. 21
Key Success Factors........................................................21
Industry Definition................................................................5 Cost Structure Benchmarks............................................. 22
Major Players...................................................................... 5 Basis of Competition......................................................... 25
Main Activities..................................................................... 5 Barriers to Entry............................................................... 26
Supply Chain....................................................................... 6 Industry Globalization........................................................ 26
INDUSTRY AT A GLANCE................................ 7 MAJOR COMPANIES...................................... 27

Executive Summary............................................................ 9 Market Share Overview..................................................... 27
Related Companies........................................................... 27
INDUSTRY PERFORMANCE..........................10 Hunt J B Transport Services Inc........................................28
Knight-Swift Transportation Holdings Inc.......................... 30
Key External Drivers.........................................................10
Current Performance........................................................ 11 OPERATING CONDITIONS............................ 32
INDUSTRY OUTLOOK.................................... 14 Capital Intensity................................................................. 32

Technology & Systems......................................................32
Outlook.............................................................................. 14 Revenue Volatility..............................................................33
Industry Life Cycle............................................................. 16 Regulation & Policy........................................................... 34
Industry Assistance........................................................... 34
PRODUCTS & MARKETS............................... 17
KEY STATISTICS............................................ 36
Supply Chain..................................................................... 17
Products & Services.......................................................... 17 Industry Data..................................................................... 36
Demand Determinants...................................................... 18 Annual Change..................................................................36
Major Markets....................................................................18 Key Ratios......................................................................... 36
Business Locations........................................................... 19
ADDITIONAL RESOURCES............................37
Additional Resources........................................................ 37
Industry Jargon..................................................................37
Glossary............................................................................ 37
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COVID-19 IBISWorld's analysts constantly monitor the industry impacts of current events in real-time – here is an update of
(Coronavirus) how this industry is likely to be impacted as a result of the global COVID-19 pandemic:
Impact Update · Revenue for the General Freight Trucking industry contracted 6.6% in 2020. This was largely due to declining
demand from key markets as a result of the pandemic, as well as resulting volatility for commodity prices. For more
detail, please see the Current Performance chapter.
· The average industry profit margin also declined in 2020, while wages inflated as a share of revenue. Demand for
industry services has fallen and operators have encountered excess capacity. For more detail, please see the Cost
Structure Benchmarks chapter.
· Although demand for the industry's various products declined somewhat across all major markets, specific
segments are expected to encounter greater declines than others. This distorted the major markets breakdown in
2020. For more detail, please see the Major Markets chapter.
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About IBISWorld
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are truly global in nature.
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About This Industry

Industry Definition This industry comprises operators that provide freight truckload trucking. These general freight truckload carriers
provide full-truck movement of freight from origin to destination. The shipment of freight on a truck is characterized
as a full single load not combined with other shipments.
Major Players Hunt J B Transport Services Inc.
Knight-Swift Transportation Holdings Inc.
Main Activities The primary activities of this industry are:
General, long-distance truckload transit
General local truckload transit
Container trucking, long-distance and local
Logistics planning
The major products and services in this industry are:
Long-distance truckload transportation
Local truckload transportation
Intermodal transportation
Other
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Supply Chain
SIMILAR INDUSTRIES
Local Freight Trucking in the US Long-Distance Freight Trucking in Local Specialized Freight Tank & Refrigeration Trucking in the
the US Trucking in the US US
RELATED INTERNATIONAL INDUSTRIES
Güterbeförderung im Freight Trucking in China Freight Road Transport in the UK Local Freight Trucking in Canada
Straßenverkehr
Road Freight Transport in New
Zealand
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Industry at a Glance
Key Statistics Key External Drivers % = 2016–21 Annual Growth
$212.2bn 0.2% 2.3%

Revenue Industrial production index Consumer spending
Annual Growth Annual Growth Annual Growth

2.0% 7.3%
Freight transportation services Price of diesel
2016–2021 2021–2026 2016–2026 index
3.5% 2.1%
Industry Structure
$13.4bn POSITIVE IMPACT

Profit
Concentration Industry Globalization
Annual Growth Annual Growth Low Low / Increasing
2016–2021 2016–2021
MIXED IMPACT
4.5% Life Cycle Revenue Volatility
Mature Medium
Capital Intensity Regulation & Policy
Medium Medium / Steady
6.3%
Profit Margin Technology Change
Medium
Annual Growth Annual Growth
NEGATIVE IMPACT
2016–2021 2016–2021
Industry Assistance Barriers to Entry
0.3pp Low / Steady Low / Steady
Competition
High / Increasing
656k
Businesses
Annual Growth Annual Growth Annual Growth Key Trends

2016–2021 2021–2026 2016–2026
 Operators have increased employment levels amid
5.9% 3.9% restrictions regarding drivers' hours
 The price of diesel has been volatile but rising, boosting

revenue but tightening profit
1m  The contract-based carriage format has become increasingly

Employment popular
Annual Growth Annual Growth Annual Growth  Rising trade volumes will increase shipments that require
more trucking companies
2016–2021 2021–2026 2016–2026
 Driver shortages and rising industry wages will limit
3.2% 2.7%
profitability over the next five years
 Improved consumption will drive import activity, which

requires industry services
$46.0bn  As demand for industry services continues to increase, the
Wages
driver shortage is expected to continue
Annual Growth Annual Growth Annual Growth
2016–2021 2021–2026 2016–2026
2.8% 2.6%
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Products & Services Segmentation
Major Players SWOT
STRENGTHS
Low Imports
Low Customer Class Concentration
WEAKNESSES
Low & Steady Barriers to Entry

Low & Steady Level of Assistance
High Competition
Low Profit vs. Sector Average
High Product/Service Concentration
High Capital Requirements
OPPORTUNITIES
High Revenue Growth (2016-2021)

High Performance Drivers
Freight transportation services index
THREATS
Price of diesel
Low Revenue Growth (2005-2021)
Low Outlier Growth
Low Revenue Growth (2021-2026)
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Executive Summary Volatile cargo: Fuel price fluctuations and driver shortages have
complicated the industry's growth
The General Freight Trucking (Truckload) industry is engaged in the full, single-load, long-distance and local
transportation of palletized commodities by van trailer or container. Industry performance is dependent on the health
of the United States economy. Revenue growth is prompted by high consumer spending, manufacturing output and
trade volumes. However, the innate volatility of fuel prices influences the industry each year, because fuel
surcharges account for a large portion of operating revenue. Fuel surcharges are required to mitigate the effects of
changes in the price of fuel on operating costs and profit. Revenue typically declines in line with falling fuel costs,
although lower fuel costs can also bolster industry profitability. The average industry profit margin, measured as
earnings before interest and taxes, accounts for 6.3% of revenue in 2021.
IBISWorld expects industry revenue to increase at an annualized rate of 3.5% to $212.2 billion over the five years to
2021, including anticipated growth of 5.8% in 2021. Industry demand expanded over the past five years as
consumer spending and the industrial production index grew. The industry encountered strong revenue declines in
2020, however, amid the COVID-19 (coronavirus) pandemic. The pandemic caused key downstream markets, such
as trade, retail and manufacturing, to halt or reduce demand sizably. In combination with collapsing oil prices,
revenue dropped 6.6% in 2020 alone. A shortage of drivers has also challenged the industry recently. Demand has
persistently exceeded the supply of drivers. This has stimulated an increase in industry wages and the number of
industry operators, especially nonemployers, during the period.
IBISWorld expects industry revenue to increase at an annualized rate of 2.1% to $235.7 billion over the five years to
2026. According to the latest data available from the American Trucking Association, freight trucks moved 11.8
billion tons of freight in 2019, accounting for 72.5% of the annual total in the United States. This figure is expected to
continue increasing over the five years to 2026. Moving forward, trucking will continue to be the most widely used
mode of freight transportation. As demand for industry services continues to increase, the driver shortage is
expected to continue, leading industry wages to rise as a share of revenue and constraining growth in profitability.
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Industry Performance
Key External Freight transportation services index

Drivers
The freight transportation services index measures the annual output of the Transportation and Warehousing sector
(IBISWorld reports 48-49). When the economy grows and consumer spending increases, industrial, retail and trade
activity rise. As a result, demand for goods transportation, which includes industry services, increases. The freight
transportation services index is anticipated to expand in 2021, representing a potential opportunity for the industry.
Industrial production index
The industrial production index (IPI) reflects the health of the Manufacturing sector (reports 31-33); therefore, an
increase in the IPI represents growth in manufacturing output. This sector is the largest user of industry services.
Consequently, as manufacturing output increases, demand for long-distance freight trucking increases. The IPI is
expected to rise in 2021, after having dipped in 2020 as a result of the coronavirus pandemic.
Consumer spending
Consumer spending reflects growing demand for goods and services, thereby driving retail and manufacturing
activity. Consequently, an increase in spending also leads to an additional need for the movement of general
truckload freight, boosting demand for industry services. Consumer spending is expected to increase in 2021.
Price of diesel
The cost of fuel heavily impacts industry costs, which are highly volatile due to environmental, economic and
geopolitical factors over which industry companies have no control. During periods of high fuel prices, industry profit
margins often decline. However, industry operators typically implement fuel surcharges to offset rising costs and
generate additional revenue, minimizing lost profitability. The price of diesel fuel is expected to increase in 2021.
High volatility in the price of fuel represents a potential threat to the industry.
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Current The General Freight Trucking (Truckload) industry is engaged in the full,
Performance single-load, long-distance and local transportation of palletized
commodities by van trailer or container.
Operators often carry out dedicated freight transportation using a full dry-van trailer or intermodal container to carry
a palletized load for a single customer. The industry has experienced a volatile mix of conditions over the five years
to 2021. These conditions have ultimately proved favorable, however, and stimulated revenue growth through most
of the period. In particular, rising consumer spending and disposable income levels prompted rising demand for
industry services as consumer and retail industries demand dedicated transportation services more frequently.
Furthermore, the IPI and total trade value have each risen during the period, resulting in strong demand for industry
services from numerous sectors in the United States.
Despite overall growth, operators navigated numerous headwinds during the five-year period. For example, fuel
price volatility has impacted operations by affecting the ability of industry operators to generate revenue from fuel
surcharges. The price of diesel fell an estimated 14.7% and 16.4% in 2016 and 2020, respectively, causing declines
in industry revenue in those years. Furthermore, lower oil prices coincided with large declines in the prices of major
commodities, such as iron, aluminum and nickel, which ultimately resulted in lower IPI levels in those years. With
lower value assigned to industry services from manufacturers in response to lower commodity prices, operators
suffered and revenue decreased. This was particularly noticeable in 2020, during the coronavirus pandemic.
Ultimately, the pandemic contributed to a 6.6% industry revenue decline in 2020. Despite these individual years of
decline, however, industry revenue has risen at an estimated annualized rate of 3.5% to $212.2 billion over the five
years to 2021, including anticipated growth of 5.8% in 2021.
THE CORONAVIRUS PANDEMIC
The coronavirus pandemic had several negative consequences for the

industry that ultimately contributed to the largest revenue decline since
2009.
Industry services are innately socially distanced and were, therefore, able to continue despite the pandemic.
However, the pandemic had many more adverse effects for downstream industries that rely on industry services. In
manufacturing, supply chain disruptions related to limited capacity warehouses or delayed trade flows caused
activity to slow. Furthermore, retail demand collapsed following much lower consumer spending, high unemployment
and closure of many nonessential businesses. As a result, demand from retailers and demand throughout the supply
chain were limited, with the notable exception of a few sectors such as e-commerce.
DRIVER SHORTAGES AND LIMITS ON HOURS
Barring 2020, demand for industry services has risen with relative
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consistency over the past five years.

Consumer spending rose an annualized 2.1% over the five years to 2021, while the IPI rose an estimated
annualized 1.3%. However, the industry has encountered struggles to satisfy emerging demand and fulfill growing
contracts for dedicated freight transportation. According to the Bureau of Labor Statistics, the average freight truck
driver in the United States is older than 55 years, and that average is increasing. Moreover, the industry has
struggled to attract younger replacements to join the industry. The industry's working conditions and hours prove
unpopular for potential new workers that are increasingly opting into alternative industries. Ultimately, this has
resulted in a smaller pool of willing employees relative to total demand.
The legal limit of hours that can be spent driving by a single driver has also become more constrained by new
regulations implemented during the five-year period. Consequently, contractors and trucking companies have been
required to boost the number of drivers and trucks they have out on the road at a time to fulfill their contracts. Thus,
over the past five years, industry operators have increased their focus on bolstering their employment levels. With
growing demand and a strengthening economy, IBISWorld estimates that industry employment to grow at an
annualized rate of 3.2% to nearly 1.3 million workers over the five years to 2021. Similarly, the number of industry
enterprises is expected to rise at an annualized rate of 5.9% to 656,314 during the same period. Large operators are
increasingly relying on nonemployers, operating as contracted owner-operators, to complete dedicated
transportation contracts as the pool of employees has become more constrained. Owner-operators, which set up
their own businesses and own their own trucks, are often able to negotiate significantly higher pay, taking advantage
of the shortage of drivers.
FUEL PRICES INFLUENCE REVENUE AND PROFIT
Fuel surcharges are built into transportation contracts as a way to

mitigate volatile changes in fuel prices and create a degree of stability for
profit margins.
Typically, carriers have a fuel surcharge schedule and determine their surcharge through an index, peg and
escalator that enable them to share the risk of input price changes with the shipper. During periods of high fuel
prices, higher fuel surcharges enable industry revenue to rise while limiting increases in operating costs as a share
of revenue. Conversely, during periods of low fuel prices, revenue from surcharges declines, operating costs fall and
profit margins tend to improve.
The price of diesel is estimated to have increased at an annualized rate of 3.2% over the five years to 2021, though
price fluctuations have been much more severe from year to year. In 2016 and 2020, the price of diesel fell 14.7%
and 16.4%, respectively. In these years, the industry experienced a decline in fuel surcharge revenue, causing total
revenue to drop as well. Fortunately for the industry, the price of diesel has since rallied, leading to industry revenue
growth of 6.4% and 5.8% in 2017 and 2021, respectively, as demand continued to expand and surcharge revenue
grew.
CONTRACTS REMAIN POPULAR
Growth in demand for services from general freight trucking service

providers on a contractual basis has been particularly strong over the
past five years.
A rising number of retailers have shown a preference for contract-based truckload services in place of services
provided on the spot market, which is generally confined to less-than-truckload freight services. The spot market is
essentially the market for last-minute or on-demand trucking services, which makes shippers much more susceptible
to price fluctuations. As shipping rates have been pushed upward by the persistent shortage of drivers and limited
supply of available capacity, combined with rebounding fuel prices between 2016 and 2020, the contract-based
carriage format has become increasingly popular. This has proved beneficial for industry operators.
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Historical Performance Data

Price of
Domestic Diesel
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand ($ per
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) gallon)
2012 163,610 51,760 419,908 416,589 970,170 N/A N/A 35,563 N/A 3.97
2013 166,474 52,063 423,120 420,517 958,525 N/A N/A 35,415 N/A 3.92
2014 179,355 56,988 453,745 451,189 988,690 N/A N/A 37,617 N/A 3.83
2015 179,765 60,415 482,687 479,499 1,042,728 N/A N/A 38,843 N/A 2.71
2016 178,642 61,645 495,938 492,231 1,075,362 N/A N/A 40,029 N/A 2.31
2017 190,084 64,447 529,928 525,662 1,104,180 N/A N/A 40,686 N/A 2.65
2018 207,241 70,461 591,155 585,767 1,189,359 N/A N/A 43,727 N/A 3.18
2019 214,860 72,886 619,808 614,329 1,235,959 N/A N/A 45,420 N/A 3.06
2020 200,606 67,260 624,813 620,506 1,197,535 N/A N/A 43,687 N/A 2.55
2021 212,172 71,321 660,872 656,314 1,260,636 N/A N/A 46,033 N/A 2.71
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Industry Outlook
Outlook Demand for services provided by the General Freight Trucking
(Truckload) industry is anticipated to be consistently high over the five
years to 2026.
Increasing manufacturing activity and greater retail spending are expected to ensure higher freight volumes as retail
inventory expands to satisfy growing consumer spending. Further, rising trade volumes over the next five years will
increase shipments to and from US ports, requiring more trucking companies to move goods across the country.
These improvements are partially reflected by the rise of the freight transportation services index, which is set to
increase at an annualized rate of 2.1% during the five-year period. Despite numerous positive demand conditions,
several headwinds are likely to persist for the industry. Structural issues, such as driver shortage and rising industry
wages, are likely to limit profitability over the next five years. Simultaneously, it is anticipated that economic growth
in the United States is beginning to plateau, which may contribute to the reduced rate of industry growth over the
next five years. Altogether, industry revenue is anticipated to increase at an annualized rate of 2.1% to $235.7 billion
in 2026.
MACROECONOMIC TRENDS
During the outlook period, economic expansion in the United States is

anticipated to gradually persist.
Overall, increases in consumer spending and per capita disposable income are expected to continue over the five
years to 2026. Improvement in consumer markets serves as the basis for growth in both industrial and trade
markets. As consumers spend more in the economy, retailers seek more inventory and manufacturers raise their
production levels to accommodate bolstered demand for their products. One trend that will potentially impact the
industry is the shift toward higher-value products and away from high-labor, low-value products. While the value of
manufacturing inputs may not be affected by this shift, industry operators typically do not charge by the value of
goods moved, but rather by volume. There is potential for high-value truckload revenue to expand profitability for
certain operators.
In addition to gains in manufacturing, improved consumer conditions should also lead to higher consumption of
imports, which requires industry services to be moved from US ports to warehouses and retailers or wholesalers.
Over the next five years, the total value of trade is expected to rise at an annualized rate of 4.2%. With the value of
the US dollar relatively unchanged, US exports will remain competitive based particularly on price. However, a
strengthened dollar during the previous five-year period helped stimulate import spending as international goods
became less expensive. Higher levels of trade benefit industry operators because long-distance trucking is still a
vital step in transporting goods to and from the country's major ports.
INDUSTRY CONDITIONS
General truckload contracts are likely to remain particularly popular over

the next five years, as an anticipated rise in fuel prices, combined with
volatility, threatens to increase freight rates.
The potential for increasing freight costs is made more apparent by the continuation of a shortage of qualified truck
drivers in the United States, with the average age of truck drivers in the United States anticipated to continue
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surpassing 55 over the next five years. As a result, total wages are expected to increase at an annualized rate of
2.6% to more than $52.2 billion over the five years to 2026. Simultaneously, conditions will remain optimal for
nonemployers that provide truckload freight services as owner-operator truck drivers. Often, these operators work as
contractors for larger freight services providers, helping to fulfill large contracts and deal with fluctuations in demand.
Consequently, the number of industry enterprises is expected to rise at a rapid annualized rate of 3.9% to 795,739
during the period. Importantly, 88.9% of industry enterprises are nonemployers, while less than 5.0% of all truckload
enterprises are companies with more than six trucks.
The extremely high concentration of small employer enterprises and nonemployer enterprises in this industry is
anticipated to persist over the next five years. As a result of the strong rate of competition for large contracts and
rising wages, the industry's profitability is projected to be constrained. Although the price of diesel is anticipated to
rise at a slightly slower annualized rate of 1.2% during the outlook period, it will remain one of the largest individual
costs encountered by industry operators and continue pressuring profit margins.
Performance Outlook Data

Domestic Price of
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand Diesel ($
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) per gallon)
2021 212,172 71,321 660,872 656,314 1,260,636 N/A N/A 46,033 N/A 2.71
2022 217,255 73,546 689,273 684,846 1,298,621 N/A N/A 47,363 N/A 2.74
2023 222,129 75,553 717,244 712,970 1,335,032 N/A N/A 48,638 N/A 2.76
2024 225,084 76,685 744,539 740,578 1,364,352 N/A N/A 49,622 N/A 2.81
2025 230,322 78,612 773,896 770,109 1,402,662 N/A N/A 50,967 N/A 2.82
2026 235,738 80,532 799,437 795,739 1,438,484 N/A N/A 52,248 N/A 2.87
2027 240,172 82,362 823,256 819,700 1,469,673 N/A N/A 53,351 N/A 2.88
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Industry Life Cycle The life cycle stage of this industry is Mature
LIFE CYCLE REASONS
Industry services are fully established among major markets

Revenue growth generally follows trends in broader US GDP growth
The number of industry operators is expanding steadily
The General Freight Trucking (Truckload) industry is in its mature life cycle stage. Although industry performance
displays volatility from year to year, this is primarily the result of external influences. In particular, fluctuations in the
world price of crude oil can lead to significant changes in revenue growth each year by impacting the productivity
and resulting output of numerous key markets. Furthermore, these fluctuations impact the ability of industry
operators to generate revenue from fuel surcharges, ultimately creating dips and spurts in growth. Nonetheless, the
industry's broader performance falls into line with the overall US economy. For example, the industry's contribution
to the overall economy, measured by industry value added (IVA), is expected to grow at an annualized rate of 2.7%
over the 10 years to 2026. United States GDP is expected to grow at an annualized rate of 2.1% during the same
10-year period. Generally, similarity in growth rates between IVA and GDP signals a mature industry.
The industry has also undergone several high-level mergers and acquisitions over the past five years, including the
recent combination of Swift and Knight Trucking, which formed Knight-Swift Transportation Holdings Inc., one of the
nation's largest truckload carriers. Several other operators have also merged brands to minimize costs during the
period. Despite these growing entities, nonemployer enterprises continue to account for a major proportion of
industry revenue. In general, the low barriers to entry and a rationalization of services continues to enable
nonemployers to compete for market share. High and stable competition alongside a consolidation phase among
major players is typical of a mature industry.
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Products & Markets

Supply Chain Key Buying Industries Key Selling Industries
1st Tier 1st Tier
Retail Trade in the US Consumers in the US
Construction in the US Fuel Dealers in the US
Manufacturing in the US Gasoline & Petroleum Wholesaling in the US
Wholesale Trade in the US 2nd Tier
2nd Tier Truck & Bus Manufacturing in the US
Freight Forwarding Brokerages & Agencies in the US Truck, Trailer & Motor Home Manufacturing in the US
Auto Parts Stores in the US
Products & Services
The primary service of operators in the General Freight Trucking

(Truckload) industry is shipping goods on behalf of a third party through
full truckload transportation.
LONG-DISTANCE AND LOCAL TRUCKLOAD FREIGHT
General truckload transportation is by far the predominant service in this

industry.
Typically, a truckload is defined as a consignment weighting more than 10,000 pounds. Truckload transportation
also entails dedicated a full truck or van load to one customer. In 2021, general truckload freight is expected to
account for 78.4% of industry revenue.
The majority of this revenue portion is comprised of long-distance services, generally defined as those that cross
state lines or leave metropolitan areas. In 2021. Long-distance general truckload freight alone is accountable for
63.9% of industry revenue. The remaining 14.5% is generated by local services carried out within metropolitan or
state boundaries. In 2020, during the coronavirus pandemic, long-distance transportation rose as a share of revenue
due to the surging popularity of e-commerce sales. Due to the lack of in-person sales requirements for e-commerce,
this market operates out of often remotely located warehouses, which means truckload shipments were increasingly
transported over long distances before sorting and delivery by couriers.
INTERMODAL TRANSPORTATION
Intermodal transportation is expected to account for 13.8% of industry

revenue.
Unlike general truckload transportation, where goods are transported in a semitrailer, intermodal transportation
entails the usage of intermodal containers, which are standardized boxes that can be used across multiple modes of
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transportation. This enables the shipment of goods using a single container across various modes of transportation,
reducing operating costs and improving efficiency. The popularity of intermodal transportation has increased over
the past five years, as trade flows soared. In 2020, however, intermodal freight transportation fell as a share of
industry revenue due to the coronavirus pandemic, which halted and slowed trade flows and manufacturing
operations. These are the key markets for this service.
OTHER SERVICES
Many operators in this industry have expanded their range of service

offerings to cement their position in global supply chains.
Emerging segments within this industry are value-added services such as door-to-door transportation, customs
brokerage, packing, logistics consultation services and other related activities. Revenue from these other services is
expected to account for 7.8% of industry revenue in 2021.
Demand Demand for the General Freight Trucking (Truckload) industry is largely
Determinants determined by cyclical factors.
These include fluctuations in retail and wholesale demand, the overall level of personal consumption, agricultural
production, construction activity and the frequency of international trade. The price of crude oil can also indirectly
influence both revenue and demand for this industry.
The level of industrial production in particular is a significant factor influencing demand for industry services. Many
manufacturers have fully adopted or are increasingly integrating just-in-time inventory management into their
production processes, which increases the frequency of demand for freight shipping services.
External competition from other modes of transportation, including rail, air and ocean transportation, can also
influence industry demand. Industries based around these different modes of transportation compete primarily on
fuel efficiency.
Major Markets
MANUFACTURING
The Manufacturing sector (IBISWorld report 31-33) is the largest market

for industry operators, accounting for an expected 43.0% of industry
revenue in 2021.
Domestic manufacturing has experienced a period of significant restructuring over the past few decades. This
restructuring has involved responding to reduced trade barriers, increasingly outsourcing transportation and new
approaches to inventory management based around just-in-time delivery and lean production processes. These
structural changes in the industry have increased demand for general freight trucking services, bolstering this
segment's percentage of industry revenue.
RETAIL AND WHOLESALE TRADE
The Retail Trade (report 44-45) and Wholesale Trade (report 42) sectors
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have also been strong sources of demand over the five years to 2021,
expected to account for 27.8% of industry revenue this year.
This market segment's proportion of industry revenue is largely tied to cyclical factors, such as growth in the labor
market and disposable income levels. When the economy is growing, individual spend more on consumer goods,
increasing demand for industry services. However, competition from in-house transportation operations can temper
demand from this market segment somewhat.
The COVID-19 (coronavirus) pandemic in 2020 was highly consequential for this market segment. The pandemic
saw a sharp drop in consumer spending as national unemployment rose. Simultaneously, CDC guidance led to
numerous business closures as non-essential businesses were forced to operate remotely or temporarily close. As a
result, this segment declined sharply as a share of revenue last year. Over the next five years, this market is
expected to increase as a share of revenue, however, as consumer spending rebounds.
OTHER MARKETS
Other significant markets for industry services include the services

sector, which is expected to account for 15.3% of industry revenue in
2021.
Other markets, including government agencies, railroad shipping operators and miscellaneous buyers, are expected
to account for 14.0 of industry revenue.
Exports in this industry are Low and Steady
Imports in this industry are Low and Steady
Although the General Freight Trucking (Truckload) industry's services are heavily involved in the facilitation of trade,
international trade does not occur in this industry.
Business
Locations
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The General Freight Trucking (Truckload) industry is predominantly distributed in line with general population trends and the
location of downstream markets. The Great Lakes region is the largest region by concentration of industry establishments,
accountable for 24.6% this year. There is a very high concentration of manufacturing operators in this region, which creates a high
level of downstream demand for industry services. Illinois alone has the largest concentration of industry establishments of any
state, expected to account for 11.5% of industry establishments, alone.
The Southeast region has the second-highest concentration of industry establishments, expected to account for 23.8% of industry
establishments in 2021. This is due to the high population in this region, which creates a consistently high demand for consumer
goods, bolstering downstream demand for industry services. Florida alone is expected to account for 5.4% of industry revenue.
Other key states to this industry include Texas, California and Georgia, which account for 8.7%, 8.4% and 3.7% of establishments,
respectively. Texas and California have large populations spread over a substantial land area and are also home to key
downstream markets such as manufacturing, key port and harbour operations that facilitate trade and heavy retail activity.
Georgia's high number of establishments outweighs the state's population fairly significantly. The state is particularly crucial to
long-distance freight transportation as several key interstate transportation routes travel through the state facilitating trade flows
up and down the east coast or from the Southwest.
20 IBISWorld.com
Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
The General Freight Trucking (Truckload) industry exhibits a low level of market share concentration. This industry
has low barriers to entry, enabling small-scale nonemployers to comprise the majority of industry operators. In 2021,
the industry's four largest players are expected to account for less than 10.0% of industry revenue. Nevertheless,
industry concentration has increased, slightly, over the five years to 2021. Many large-scale companies have
purchased smaller operators to increase their operational capacity and geographic footprint. Moving forward, the
industry's major players are expected to continue expanding through acquisition-led growth. In addition to increasing
their geographical range of service, many operators have engaged in acquisition activity to provide more value-
added services to clients. Companies that engage in significant merger and acquisition activity expand their
operational capacity and are generally more capable of winning contracts with major retailers and manufacturers.
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
Factors
Market research and understanding:
Companies in the industry must understand market segments and client needs to deliver strong customer service.
Access to quality personnel management:

Good personnel management is essential in retaining key operating personnel, including experienced drivers, which
have recently become a scarce commodity.
Having contacts within key markets:

Owner-operators should establish strategic links between themselves and freight forwarders to ensure a steady flow
of work.
Superior financial management and debt management:

Tight financial control over costs and revenue, especially debt collection and overhead, is important to plan cash
flows.
21 IBISWorld.com
Cost Structure
Benchmarks
Profit
This industry generally exhibits a relatively slim average profit margin.

Profit (measured as earnings before interest and taxes) is estimated to
represent 6.3% of industry revenue in 2021, up slightly from 6.0% in
2016. The large number of nonemployers in the industry contributes
significantly to the price-competitive environment among operators.
Many companies must lower prices to win business, a factor that
ultimately hurts profitability. The predominant reason for improved profit
margins over the five years to 2021 is the price of diesel. The price of
fuel, which affects the price of diesel, declined significantly during the
current period. As one of the most significant operating costs in the
industry, increases in the price of diesel have potential to significantly
reduce an operator's profit margin. These lower fuel prices mitigated
the impacts of the COVID-19 (coronavirus) pandemic in 2020, reducing
the decline in the average industry profit margin as demand and
revenue dropped.
Although a majority of potential cost increases can be mitigated by

implementing fuel surcharges, they rarely have capacity to mitigate the
entirety of a sudden price change. As operating costs fell during the
period, profit margins increased moderately, although revenue also
declined as operators were unable to earn from fuel surcharges. Over
the five years to 2026, profitability is expected to decline moderately as
fuel costs increase once more. However, the reduction in profitability
will be somewhat offset by increasing demand for industry services as
the economy continues to strengthen.
Wages
Wages are the industry's second-largest individual component of cost

structure, as a single share of revenue. Wages have dipped from
22.4% of revenue in 2016 to account for 21.7% of revenue in 2021,
although total wages continue to rise. Many companies in the industry
are experiencing worker shortages that have persisted for almost a
decade. As demand for freight shipments increases, total wages paid
will continue to grow as demand for truckers increases and the aging
workforce continues to retire. The current shortage of drivers has
placed some strain on operators, which has resulted in increased wage
costs as a portion of revenue. Wage costs will likely continue to
22 IBISWorld.com
increase as operators continue to look to attract new workers to the

industry.
Purchases
Fuel costs are expected to represent the largest individual purchase

expense for operators in 2021. When the price of fuel increases,
industry operators are able to implement fuel surcharges because of
the lack of direct substitutes for their services. For some consumers,
trucking is necessary if they are operating on cost, time and
infrastructure constraints. While fuel surcharges can increase industry
revenue, industry companies still must spend more on fuel, which stifles
profit.
Industry operators incur expenses related to day-to-day operations,

including replacement tires and permits or licenses. Additional
purchase costs include computer software and hardware used in the
shipping industry, such as global positioning systems and ELDs. These
purchase costs will increase over the five years to 2026 as the industry
increasingly invests in technology and other value-added services that
require such purchases. IBISWorld estimates that purchases, including
fuel, account for 33.7% of revenue in 2021.
Marketing
Marketing accounts for just 0.2% of industry revenue, on average. A

majority of owner-operators in particular rely on freight brokers for work
rather than through advertising.
23 IBISWorld.com
Depreciation
Depreciation expenses are estimated to account for 5.6% of revenue

this year. Over the past five years to 2021, depreciation expenses have
remained relatively high as demand for newer, more fuel-efficient trucks
has persisted. Additionally, growing demand for industry services has
increased the necessity for fleet expansion among larger industry
operators, which has led to a greater depreciation as a share of
revenue.
Rent
In 2021, rent expenses, which include the cost of truck or trailer rental,
account for 4.6% of revenue on average. Truck purchases, which are
often structured as lease-to-own finance agreements, are included in
this segment and compose the largest portion of the operating cost.
Utilities
Utilities, which primarily reflect the cost of electricity, are a relatively

minimal cost structure component in this industry. Utilities have
consistently accounted for an estimated 0.4% of revenue over the past
five years.
24 IBISWorld.com
Other Costs
Other costs that impact operations include legal fees, general

administrative expenses, insurance, vehicle registration,
communications and cleaning. Licenses, insurance and other
administrative expenses can be relatively significant in this industry.
IBISWorld estimates that repair and maintenance costs account for
more than 10.0% of this remaining, “other” segment in 2021. In
addition, maintenance costs relate to the upkeep of trucks, trailers and
containers, including the replacement of consumable goods such as
tires.
Operators tend to keep a watchful eye on costs; less important repairs

are often delayed, and trucks are expected to travel more miles
between services. Major operators also use computerized monitoring
systems to advise drivers on how to reduce wear and tear on vehicles.
Due to the long lifetime of semitrucks and trailers, which can cover
more than 1.0 million miles over their lifetime, repair and maintenance
costs are significant.
Basis of Competition in this industry is High and the trend is Increasing

Competition
INTERNAL COMPETITION
Competition is intense among operators in the General Freight Trucking

(Truckload) industry due to the industry's low barriers to entry.
As a result of this intense level of competition, freight rates have experienced increased downward pressure.
Competition between operators is based on a variety of factors, such as freight rates, quality of service, reliability,
transit times and operational scope. Over the past decade, many larger industry operators have acquired or merged
with companies in closely-related industries to provide more value-added services, such as warehousing, packaging
and logistics. Operators providing this array of related services have a competitive advantage, as clients are likely to
opt for a company that can accommodate all of their transportation needs rather than hiring several different
operators.
The substantial number of operators in this industry also contributes to high levels of competition. Most enterprises
are nonemployers, many of which are contracted by larger transportation companies. Small companies have
relatively little market power, which leaves little room for error in competing with larger companies.
Shippers have certain expectations when using industry services, including shipments being delivered in full and on
time. Many of the trucking industry's clients have adopted just-in-time (JIT) inventory management techniques,
intensifying these expectations. JIT stock management can significantly reduce inventory storage costs, especially
for perishable merchandise, as it enables companies to purchase only the raw materials needed immediately, rather
than purchasing inventory and storing it over the long-term. The use of JIT has caused many downstream operators
to need freight trucking services more often, boosting industry demand while increasing competitive pressures. As a
result, industry operators need to be flexible and provide a high level of timely service to remain competitive.
EXTERNAL COMPETITION
Other industries, such as the Rail Transportation industry (IBISWorld

report 48211), also compete with this industry.
However, these transportation alternatives are not direct substitutes, as some customers must ship using trucking
due to cost, time and infrastructure constraints. While increased fuel efficiency may spur some prospective
customers to opt for rail shipping, competition among these three industries is limited because railroads have a
limited geographic reach compared to industry operators.
Water transportation also represents a potential threat to freight trucking due to its reliability and ability to move large
amounts of heavy cargo. However, competition from water transportation is tempered somewhat by the threat of
weather events, which can hamper inland water transportation. Additionally, most ocean-going trade is international
in nature, which does not infringe on the industry's business.
The industry also competes with airfreight transportation, as customers that are moving small-volume, time-sensitive
and valuable freight generally opt for airfreight options. However, the cost of airfreight is relatively high, and it is
25 IBISWorld.com
generally not used for local transportation, which limits this competition. Nevertheless, competition from package
carriers with less-than-truckload operations (which are excluded from this industry), including FedEx, UPS and DHL,
is expected to increase.
Barriers to Barriers to Entry in this industry are Low and the trend is Steady
Entry
Barriers to entry are typically low in trucking industries, Barriers to Entry Checklist
because there are relatively few capital and skill
requirements compared to other sectors. Prospective Competition High
operators for the General Freight Trucking (Truckload)
industry generally need only a commercial driver's license Concentration Low
(CDL) and a truck to begin operating. To obtain a CDL,
most states require an individual to be 18 years old,
Life Cycle Stage Mature
although licensing requirements differ from state to state.
Other factors, such as increasing compliance costs in
meeting environmental regulations, may also act as Technology Change Medium
deterrents to entry, but these requirements are typically
minimal. Regulation & Policy Medium
The relative ease with which a new competitor can enter Industry Assistance Low
the industry causes there to be a large number of small
operators and sole proprietors in the market for general
truckload freight trucking. In turn, the industry's low
concentration increases overall competition, pushing
down freight rates and industry profit in turn. Though
operators tend to target specific areas or types of work,
the generalized nature of industry freight means operators
can handle business from a variety of clients. However,
the high level of competition within the industry can act as
an additional barrier to entry.
Industry Globalization in this industry is Low and the trend is Increasing

Globalization
The majority of companies operate strictly in the domestic market, largely because of the abundance of self-
employed operators in the industry. While the top industry players are based in the United States, some have
operations overseas.
YRC Worldwide Inc., one of the largest companies in this industry, operates additional subsidiaries in Europe, Asia
and Central and South America. Operators predominantly based in the United States have incentives to base some
of their operations overseas, as goods handled by these overseas subsidiaries destined for the large US market can
act as a potential source of additional revenue.
26 IBISWorld.com
Major Companies
Market Share Overview
Related Companies
Competitors Company Type Employee Segment Revenue ($m) Market Share (%) Profit ($m)
Hunt J B Transport Services Inc. All Star 500+ Employees 3,819.1 1.8 324.1
Knight-Swift Transportation Holdings Inc. Rising Star 500+ Employees 2,333.9 1.1 285.0
27 IBISWorld.com
Companies with 5.0% industry market share are displayed in the PDF version of this report. You can view insights for all companies associated
with this industry on my.ibisworld.com
Hunt J B Transport Services Inc.

Company Overview
Description Hunt J B Transport Services Inc. is a public company headquartered in Arkansas with an estimated 33,045
employees. In the US, the company has a notable market share in at least four industries: Tank & Refrigeration
Trucking, Long-Distance Freight Trucking, Local Freight Trucking and General Freight Trucking (Truckload). Their
largest market share is in the Tank & Refrigeration Trucking industry, where they account for an estimated 2.8% of
total industry revenue and are considered an All Star because they display stronger market share, profit and
revenue growth compared to their peers.
COMPANY TYPE Public Company

TOTAL COMPANY $3.8bn
REVENUE
EMPLOYEES 33,045
Other Industries Local Freight Trucking in the US

Local Specialized Freight Trucking in the US
Tank & Refrigeration Trucking in the US
Long-Distance Freight Trucking in the US
Analyst Insights JB Hunt teams up with Wayno for autonomous driving innovations
In January 2022, JB Hunt Transport Services Inc (JBHT) announced a long-term partnership with Waymo Via
(Waymo), an autonomous driving technology (ADT) company, to continue technological innovations in commercial
ADT, with the end goal of fully autonomous transport in Texas in the next few years. This is a result of its previous
collaboration in 2021, when Waymo helped JBHT understand how ADT technology could be implemented into its
operations. Waymo’s track record of success over the past decade will help JBHT reshape operations in the long
term.
Balance Sheet Competition Discontinued Activity M&A New Activity
JB Hunt completes acquisition to expand furniture delivery

In January 2022, JBHT announced that it would be acquiring Zenith Freight Lines LLC (Zenith), a supply chain
solutions provider and subsidiary of Bassett Furniture Industries (Bassett), a furniture manufacturer and retailer, for
$87.0 million. As part of this acquisition, JBHT will enter into a long-term master services agreement to continue
providing the same high quality of service that Zenith has had for Basset for almost 50 years. This acquisition
strengthens JBHT’s furniture delivery services by expanding its supply chain solutions domestically.
Balance Sheet M&A New Activity
JB Hunt grows significantly in 2021 despite lower intermodal volumes

After growing in 2020, despite the effects of the COVID-19 (coronavirus) pandemic, JBHT recorded another year of
significant growth as it generated $12.2 billion in 2021, up 26.3% from the prior year. This was a result of all five of
JBHT’s business segments exhibiting growth. The bulk of its growth was thanks to its Intermodal (JBI) segment,
which increased 16.7% since 2020, with a strong 26.0% growth in the fourth quarter of 2021 alone. While overall
volume declined slightly from 2020, it was offset by an increase in revenue per load, customer rates and fuel
surcharges.
Balance Sheet Competition Discontinued Activity M&A New Activity
28 IBISWorld.com
Hunt J B Transport Services Inc.

Company Overview
Industry Market Market Share
Share, Revenue
and Profit 1.8% 0.6%
Current Year Annual Growth
(2021)
(2017–21)
Industry Revenue
$3.8bn 17.0%
(2021)
(2017–21)
Profit Margin
8.49% 0.0%
(2021)
-
29 IBISWorld.com

Company Overview
Brands & Trading Knight-Swift
Names
Description Knight-Swift Transportation Holdings Inc. is a public company headquartered in Arizona with an estimated 21,971
employees. In the US, the company has a notable market share in at least five industries: Tank & Refrigeration
Trucking, Local Specialized Freight Trucking, Local Freight Trucking, Long-Distance Freight Trucking and General
Freight Trucking (Truckload). Their largest market share is in the Tank & Refrigeration Trucking industry, where
they account for an estimated 12.3% of total industry revenue and are considered an All Star because they display
stronger market share, profit and revenue growth compared to their peers.
COMPANY TYPE Public Company

TOTAL COMPANY $2.3bn
REVENUE
EMPLOYEES 21,971
Other Industries Long-Distance Refrigerated Trucking

Local Freight Trucking in the US
Local Specialized Freight Trucking in the US
Tank & Refrigeration Trucking in the US
Long-Distance Freight Trucking in the US
Financial Knight-Swift Transportation Holdings Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2016 1,489.5 N/C 181.9 N/C
2017 1,648.7 10.7 201.3 10.7
2018 1,946.9 18.1 237.7 18.1
2019 2,199.1 13 268.5 13
2020 2,167.1 -1.5 264.6 -1.5
2021 2,333.9 7.7 285 7.7
Source: IBISWorld
Note: * Estimates
30 IBISWorld.com

Company Overview
Industry Market Market Share
Share, Revenue
and Profit 1.1% 0.2%
(2021)
(2017–21)
Industry Revenue
$2.3bn 9.1%
(2021)
(2017–21)
Profit Margin
12.21% 0.0%
(2021)
-
31 IBISWorld.com
Operating Conditions
Capital The level of capital intensity is Medium

Intensity
The General Freight Trucking (Truckload) industry exhibits
a moderate level of capital intensity. This is largely due to
the significance of wages to industry operations. In total,
wages account for 21.7% of industry revenue in 2021.
Wages have grown at a slightly slower rate than industry
revenue over the past five years. The average industry
operator allocates $0.26 toward capital investments for
every dollar allocated towards labor in 2021, down from
$0.27 in 2016. This is considered to be reflective of the
substantial number of owner-operator truck drivers that
occupy the industry. Due to the moderately low capital
intensity of this industry, the acquisition cost of a truck to
start a business is conducive to a high rate of industry-
entry. Nonetheless, the capital intensity level exhibited by
this industry is expected to rise over the next five years, as
operators invest more heavily in capital equipment like fuel-
efficient trucks and logistics software.
Technology & Potential Disruptive Innovation: Factors Driving Threat of Change

Systems
32 IBISWorld.com
The General Freight Trucking (Truckload) industry may potentially contend

with disruption from developments in autonomous truck and vehicle
technologies in the near future.
Although the technology is still being developed and is not currently deployable, it nevertheless poses a significant threat of
potential disruption. The numerous owner-operator drivers in the industry are particularly at risk, as they have
comparatively less capital to invest in this technology. Furthermore, a large number of patents and intellectual properties
have already been developed, which may heighten barriers to entry in this industry. Autonomous vehicles have the
potential to satisfy significant highway portions of transportation routes, requiring human drivers only for the more complex
routes or final delivery portions of each route. As this technology develops, it has the potential to increase consolidation in
this industry by enabling a smaller number of operators to own and operate a bulk of the capital.
The level of technology change is Medium
Operators in the General Freight Trucking (Truckload) industry have been

increasingly integrating freight and vehicle tracking systems in their
operations.
Global positioning systems and data processing technology enable virtually instantaneous communication between
vehicles and their base. For example, in 2016, software provider Blue Tree Systems introduced fleetmanager.com, a
platform that provides managers and dispatchers with real-time updates on drivers and vehicles. These systems provide
precise global vehicle positioning within 100 yards, along with vehicle status and driver data. This technology also enables
companies to analyze driving patterns, traffic congestion trends and fuel consumption rates to improve profitability. Larger
operators can analyze this data to give drivers alternative and more efficient routes.
Electronic Logging Devices (ELDs), which enable operators to keep track of drivers' hours of service, have largely replaced
paper logbooks, as a congressionally-mandated rule requiring ELDs took effect in 2017. Many operators, particularly
smaller owner-operators, opposed this regulation, concerned about its impact on their market viability. In addition, larger
operators have launched various e-commerce products, such as internet forms for business transactions, reducing costs of
conducting business. These websites enable shippers to get rates, schedule pickups, trace shipments, pull invoices and
make online payments. The industry's use of e-commerce is expected to increase in the near future. The industry has also
invested in new fuel-efficient, low-emission vehicles as a result of high fuel prices and increasing public awareness of
environmental sustainability issues.
Revenue The level of volatility is Medium

Volatility
The General Freight Trucking (Truckload) industry has experienced a

moderate degree of revenue volatility over the past five years to 2021.
Generally, fluctuations in the rate of revenue growth are stimulated by changes in demand from downstream markets. More
33 IBISWorld.com
specifically, changes in demand from retail, manufacturing and wholesale markets impact the industry each year.
Nonetheless, the full scale and scope of industry operations means that there is a diverse range of clients and a broad
array of commodities handled by industry operators, which results in a level of innate demand stability for operators.
Consequently, the most significant contributor to volatile industry revenue growth is changes in the price of diesel fuel. Over
the past five years, significant changes in the price of diesel have stimulated the industry to grow relatively sporadically
during the five-year period, increasing revenue volatility. For example, after a steep decline in fuel prices and economic
activity in 2020, during the coronavirus pandemic, industry revenue fell 6.6%, while a rebound in the price of fuel is
expected to contribute to revenue growth of 5.8% in 2021.
Regulation & The level of regulation is Medium and the trend is Steady
Policy
While there is generally a low level of regulation with regard to entry, exit and
pricing, operators in the General Freight Trucking (Truckload) industry are
subject to general trucking standards and rules enforced by both the US
Department of Transportation and various state agencies.
Depending on their geographic range, differing state regulations apply to operators. These regulations govern licensing
requirements, safety requirements and equipment specifications. In addition to state regulations, if a truck crosses state
lines for commercial purposes, it must adhere to federal regulations.
State licensing regulations determine a driver's minimum age and physical condition to hold a license. In most states, the
minimum age at which a person can acquire a commercial driver's license is 18 years, although they must be 21 years old
to cross state lines as a licensed truck driver under federal law.
Industry operators are also subject to regulation regarding the amount of time truck drivers are permitted to spend driving.
For example, according to the Federal Motor Carrier Safety Administration (FMCSA), property-carrying drivers are allowed
to drive for a maximum of 11 hours following 10 consecutive hours off duty. Similarly, the FMCSA stipulates that drivers are
not permitted to either drive for a total of 60 hours over the course of seven consecutive days or for 70 hours over the
course of eight days. Additionally, truck drivers have the right to use a 34-hour restart function, where drivers restart a
seven or eight-day consecutive period by taking 34 or more consecutive hours off duty. These regulations are intended to
promote the health of both industry truck drivers and the general public by preventing drivers from becoming over-fatigued
and unable to safely drive.
COVID-19 HEALTH AND SAFETY REGULATIONS
In response to CDC guidance, various levels of regulation have been and are
still being implemented in the United States to discourage public gathering
and large events due to the COVID-19 (coronavirus) pandemic.
Those regulations have varied from state to state, with minimal federal regulation implemented. Most states implemented
various, “shelter-in place” orders in 2020 and now in 2021, although the severity of these measures has varied widely from
state to state. For example, in New York, original regulations prohibited gatherings of more than 10 people for non-essential
purposes. Many industry operators have transitioned to a predominantly, “remote office” work setup wherever possible, to
ensure employee health and safety and to comply with various state regulations requiring office closures. Obviously, the
majority of industry operations have not been able to transition to remote working, but transportation providers have
benefited from the “remote” nature of operations. Furthermore, services have been deemed essential to the economy,
which allowed operators to avoid further disruptions beyond those caused by the loss of economic activity and demand
from downstream markets. The pandemic has not resulted in any other significant regulatory issues for this industry.
Industry The level of industry assistance is Low and the trend is Steady
Assistance
Operators in the General Freight Trucking (Truckload) industry do not receive
direct assistance from government agencies.
However, many industry operators receive some degree of assistance from membership in industry trade associations and
other private organizations. For example, the American Trucking Association represents industry operators by lobbying
various levels of government for favorable regulations while improving the public image, efficiency and profitability of
industry operators. The association also conducts self-regulation of the industry and provides operators with networking
and educational opportunities through affiliated partners. The industry is also supported by America's Independent
Truckers' Association (AITA), which assists smaller owner-operators and small fleets by providing them with increased
collective bargaining power and savings opportunities. For example, the AITA manages a group of participating suppliers
that sells discounted parts and equipment to smaller owner-operators.
COVID-19 (coronavirus) Assistance
34 IBISWorld.com
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020 by the Trump
administration, provided more than $2.2 trillion in economic assistance for US businesses and consumers. Included in the
act were payroll protection loans, which have enabled industry operators to sustain their payroll and keep employees in
their jobs. This helped industry operators significantly in their efforts to compensate for revenue declines in 2020. Little aid
was provided for the rest of the year, pressuring operators to reduce payroll where necessary, however further coronavirus
aid is anticipated in early 2021. The new Biden administration has recently passed a substantial economic relief bill worth
$1.9 trillion to combat the effects of the pandemic, although specific details of relevance to this industry are yet to emerge.
35 IBISWorld.com
Key Statistics
Industry Data
Domestic Price of
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand Diesel ($ per
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) gallon)
2012 163,610 51,760 419,908 416,589 970,170 N/A N/A 35,563 N/A 3.97
2013 166,474 52,063 423,120 420,517 958,525 N/A N/A 35,415 N/A 3.92
2014 179,355 56,988 453,745 451,189 988,690 N/A N/A 37,617 N/A 3.83
2015 179,765 60,415 482,687 479,499 1,042,728 N/A N/A 38,843 N/A 2.71
2016 178,642 61,645 495,938 492,231 1,075,362 N/A N/A 40,029 N/A 2.31
2017 190,084 64,447 529,928 525,662 1,104,180 N/A N/A 40,686 N/A 2.65
2018 207,241 70,461 591,155 585,767 1,189,359 N/A N/A 43,727 N/A 3.18
2019 214,860 72,886 619,808 614,329 1,235,959 N/A N/A 45,420 N/A 3.06
2020 200,606 67,260 624,813 620,506 1,197,535 N/A N/A 43,687 N/A 2.55
2021 212,172 71,321 660,872 656,314 1,260,636 N/A N/A 46,033 N/A 2.71
2022 217,255 73,546 689,273 684,846 1,298,621 N/A N/A 47,363 N/A 2.74
2023 222,129 75,553 717,244 712,970 1,335,032 N/A N/A 48,638 N/A 2.76
2024 225,084 76,685 744,539 740,578 1,364,352 N/A N/A 49,622 N/A 2.81
2025 230,322 78,612 773,896 770,109 1,402,662 N/A N/A 50,967 N/A 2.82
2026 235,738 80,532 799,437 795,739 1,438,484 N/A N/A 52,248 N/A 2.87
Annual Change
Domestic
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand Price of
Year (%) (%) (%) (%) (%) (%) (%) (%) (%) Diesel (%)
2012 3.93 9.10 3.85 3.61 5.06 N/A N/A 6.38 N/A 3.06
2013 1.75 0.58 0.76 0.94 -1.21 N/A N/A -0.42 N/A -1.29
2014 7.73 9.45 7.23 7.29 3.14 N/A N/A 6.21 N/A -2.38
2015 0.22 6.01 6.37 6.27 5.46 N/A N/A 3.25 N/A -29.3
2016 -0.63 2.03 2.74 2.65 3.12 N/A N/A 3.05 N/A -14.7
2017 6.40 4.54 6.85 6.79 2.67 N/A N/A 1.64 N/A 14.9
2018 9.02 9.33 11.6 11.4 7.71 N/A N/A 7.47 N/A 19.9
2019 3.67 3.44 4.84 4.87 3.91 N/A N/A 3.86 N/A -3.99
2020 -6.64 -7.72 0.80 1.00 -3.11 N/A N/A -3.82 N/A -16.4
2021 5.76 6.03 5.77 5.77 5.26 N/A N/A 5.36 N/A 6.06
2022 2.39 3.11 4.29 4.34 3.01 N/A N/A 2.88 N/A 1.18
2023 2.24 2.72 4.05 4.10 2.80 N/A N/A 2.69 N/A 0.57
2024 1.33 1.49 3.80 3.87 2.19 N/A N/A 2.02 N/A 1.80
2025 2.32 2.51 3.94 3.98 2.80 N/A N/A 2.71 N/A 0.59
2026 2.35 2.44 3.30 3.32 2.55 N/A N/A 2.51 N/A 1.83
Key Ratios
Imports/ Exports/ Revenue per Wages/ Employees per
IVA/Revenue Demand Revenue Employee Revenue estab.
Year (%) (%) (%) ($'000) (%) (Units) Average Wage ($)
2012 31.6 N/A N/A 169 21.7 2.31 36,656
2013 31.3 N/A N/A 174 21.3 2.27 36,948
2014 31.8 N/A N/A 181 21.0 2.18 38,047
2015 33.6 N/A N/A 172 21.6 2.16 37,252
2016 34.5 N/A N/A 166 22.4 2.17 37,224
2017 33.9 N/A N/A 172 21.4 2.08 36,847
2018 34.0 N/A N/A 174 21.1 2.01 36,766
2019 33.9 N/A N/A 174 21.1 1.99 36,748
2020 33.5 N/A N/A 168 21.8 1.92 36,481
2021 33.6 N/A N/A 168 21.7 1.91 36,515
2022 33.9 N/A N/A 167 21.8 1.88 36,472
2023 34.0 N/A N/A 166 21.9 1.86 36,432
2024 34.1 N/A N/A 165 22.0 1.83 36,370
2025 34.1 N/A N/A 164 22.1 1.81 36,336
2026 34.2 N/A N/A 164 22.2 1.80 36,322
Figures are inflation adjusted to 2021
36 IBISWorld.com
Additional Resources
Additional Transport Topics
Resources http://www.ttnews.com
America's Independent Truckers' Association Inc.

http://www.aitaonline.com
US Energy Information Administration

http://www.eia.gov
American Trucking Associations

http://www.truckline.com
Industry Jargon FUEL SURCHARGE

An additional charge introduced by transportation operators to cover the increased cost of fuel.
GENERAL FREIGHT
A trucking service type that handles and transports a wide variety of goods in a container or van trailer.
OWNER-OPERATOR
A self-employed commercial truck driver or that operates trucks for transporting goods over highways for its
customers.
TRUCKLOAD
Truck shipments weighing more than 10,000 pounds and generally carried by semitrailers.
Glossary BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
37 IBISWorld.com
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
38 IBISWorld.com
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information you need – fast.
With our trusted research covering thousands of global industries, you’ll get a quick and intelligent
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business decisions. If you’re not yet a member of IBISWorld, contact us at 1-800-330-3772 or
[email protected] to learn more.
DISCLAIMER
This product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use by its authorized licenses strictly in
accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person
with regard to the completeness or accuracy of the data or information contained herein, and it accepts no
responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage
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Copyright 2021 IBISWorld Inc.

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INDUSTRY REPORT OD6146

General Freight Trucking (Truckload)

Dan Cook | June 2021

IBISWorld.com 1-800-330-3772 [email protected]

INDUSTRY AT A GLANCE................................ 7 MAJOR COMPANIES...................................... 27

INDUSTRY OUTLOOK.................................... 14 Capital Intensity................................................................. 32

About This Industry

Major Players Hunt J B Transport Services Inc.

Knight-Swift Transportation Holdings Inc.

Main Activities The primary activities of this industry are:

General, long-distance truckload transit

General local truckload transit

Container trucking, long-distance and local

The major products and services in this industry are:

Long-distance truckload transportation

Local truckload transportation

RELATED INTERNATIONAL INDUSTRIES

$212.2bn 0.2% 2.3%

Annual Growth Annual Growth Annual Growth

$13.4bn POSITIVE IMPACT

Annual Growth Annual Growth Annual Growth Key Trends

 The price of diesel has been volatile but rising, boosting

1m  The contract-based carriage format has become increasingly

 Improved consumption will drive import activity, which

2016–2021 2021–2026 2016–2026

Products & Services Segmentation

Major Players SWOT

Low & Steady Barriers to Entry

High Revenue Growth (2016-2021)

Key External Freight transportation services index

Industrial production index

THE CORONAVIRUS PANDEMIC

The coronavirus pandemic had several negative consequences for the

DRIVER SHORTAGES AND LIMITS ON HOURS

consistency over the past five years.

FUEL PRICES INFLUENCE REVENUE AND PROFIT

Fuel surcharges are built into transportation contracts as a way to

CONTRACTS REMAIN POPULAR

Growth in demand for services from general freight trucking service

Historical Performance Data

During the outlook period, economic expansion in the United States is

General truckload contracts are likely to remain particularly popular over

Performance Outlook Data

Industry services are fully established among major markets

Products & Markets

Retail Trade in the US Consumers in the US

Construction in the US Fuel Dealers in the US

Manufacturing in the US Gasoline & Petroleum Wholesaling in the US

Wholesale Trade in the US 2nd Tier

2nd Tier Truck & Bus Manufacturing in the US

Auto Parts Stores in the US

Products & Services

The primary service of operators in the General Freight Trucking

LONG-DISTANCE AND LOCAL TRUCKLOAD FREIGHT

General truckload transportation is by far the predominant service in this

Intermodal transportation is expected to account for 13.8% of industry

Many operators in this industry have expanded their range of service

The Manufacturing sector (IBISWorld report 31-33) is the largest market

RETAIL AND WHOLESALE TRADE

Other significant markets for industry services include the services