Friday, December 17, 2010

Freight Trucking Said To Be Improving

Tonnage Rises Predicted in the Delivery Sector
Shipping News Feature

US – With the shipping of freight, particularly by truck, taken by many analysts as one of the most contemporary and reliable guides to the financial conditions prevailing, there will be many eyes on the American Trucking Associations announcement due today which is expected to reveal a 5%+ rise in tonnage transported this November against the same period last year, this after positive gains in the previous two months.

The nature of domestic haulage in the western world is changing however with the boom in online shopping rearranging the landscape and subtly adapting a delivery profile which has been unaltered for decades. Increased tonnage may mean increased or decreased revenue dependent on prevailing conditions.

The express and general parcels services in particular can be seen to be profiting from the changes. UPS expects profits from their freight operations to rise after preliminary reports indicate a uplift in cargo volumes of between 7 and 8%. FedEx have just raised annual forecast figures despite a mid year dip in profits with executives publicly talking up the expected annual figures causing a rise in stock prices.

It should be remembered of course that this is the boom period for such firms as everyone gears up for Christmas and that current totals are still well down overall against the highs of 2008. With factors such as free delivery for smaller retail orders online it will take some time before a proper analysis of the market can be made. What is for certain however is that, the less than truckload market remains under pressure as demonstrated by the latest events at some of the major LTL providers.