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Rail News Home Rail Industry Trends

11/30/2007



Rail News: Rail Industry Trends

ATA report: Railroads', trucks' share of U.S. transportation market to inch up by 2018


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During the next 10 years, railroads and trucks will increase their share of the U.S. freight transportation market, according to the American Trucking Associations' (ATA) recently released "U.S. Freight Transportation Forecast to ... 2018" report.

Despite sluggish economic times the past two years, the report projects traffic share gains for all modes. Trucks will win the lion's share. Prepared by Global Insight Inc., the report forecasts the trucking industry's total tonnage percentage to rise from 2006's 69 percent to 69.7 percent in 2012, then up to 70 percent by 2018.

"Above-average growth in key truck commodities and the inherent flexibility and on-time delivery associated with trucking is driving industry growth," ATA officials said in a prepared statement.

However, rail intermodal and air freight also will post noteworthy gains, the report states. The two modes "represent the fastest-growing segments during the forecast period, although neither mode will have more than 2 percent of the total tonnage market by 2018," ATA said.

Total rail tonnage (including carloads and intermodal units) will edge up from 14.6 percent in 2006 to 14.7 percent in 2018. Water passage tonnage will increase from 2006's 6.5 percent by 1.6 percent a year through 2018, and pipeline transport will grow between now and 2012, then eventually fall to 9.5 percent from 2006's 9.8 percent.