Rising Fuel Costs Continue to Challenge the Trucking Industry

Wed, 10/01/2008 - 13:09 — admin

According to a New Report by Global Industry Analysts, Inc.

Categorized as a service industry, growth in the world trucking industry is largely governed by factors, such as, industrial/agricultural production, general economic health, fuel prices, road infrastructure, safety regulations, freight characteristics, and multi jurisdictional regulations. Manufacturing, wholesaling and retailing together contribute to more than half of the revenues in the trucking industry. E-commerce and information technology are expected to play a major role in improving the operational efficiency of freight transporters.
San Jose, CA (PRWEB) September 1, 2008 -- Primary demand for trucking services arises from the movement of goods and services in the economy. The industry's dynamics are therefore intricately linked with macro-economic factors, closely following the boom-trough cycles of the overall economy. The trucking industry has, over the years, evolved from offering mere transportation services to offering a wide gamut of responsive services tailored to suit the needs of different industries. For instance, trucking companies have emerged into one-stop providers of integrated transportation and logistic services. Basic transportation services are now being increasingly supplemented with additional value added services such as freight forwarding, cargo consolidation, management and handling, stock control and re-ordering, managing documentation, storage and warehousing, and transport consultancy services.
Innovative technologies have helped the trucking industry win over customer confidence, and lower administrative and processing costs. For instance, electronic systems for integration of real-time operations, implementation of satellite tracking and communication systems, smart cards, sales force automation, telematics, vehicle location systems, global communication networks and sophisticated system software are offering unprecedented benefits in terms of customer service, product tracing, just-in-time delivery, lower processing errors and low administrative costs.

Players in the industry constantly strive to improve cost efficiency of freight transportation operations. A noteworthy trend in this regard is the sustained cooperation with other modes of transportation for meeting specific delivery requirements as cost efficiencies can be combined to minimize overall costs incurred on freight transportation. E-commerce and information technology are expected to play a major role in the development of the logistics business. Adoption of information technology and e-commerce is expected to transform freight transportation services, by accelerating freight delivery speed, and facilitating effective communication management with clients. Presently, investment in these non-asset tools is relatively low as compared to investment in assets such as trucks, terminals or service centers.
The slowdown in the U.S. construction and automotive industry, escalating rising fuel prices, and the consumer credit crunch are together expected to temporarily derail growth in the domestic market. Sales of economically sensitive commodities in the country are expected to be hard hit, and decline in purchase of new trucks witnessed in the year 2007 is expected to continue until the slowdown moderates by the year 2009. Capital investment in the U.S. trucking sector is also expected to fall in 2008, which is likely to result in a decline in the overall trucking capacity. Challenges facing the global trucking industry include rising fuel costs, shortage of drivers, lack of infrastructure, inability of existing road networks to handle rising freight tonnage, inappropriately planned road expansions, and ensuing traffic congestion, truck safety, adherence to pollution control regulations, and working hours for drivers.
The report titled "Trucking Industry: A Global Outlook" published by Global Industry Analysts Inc, provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report focuses on the US trucking industry, offering in-depth discussion on trade/regulatory issues, fleet size, and market shares. The report also includes an expansive directory listing the addresses, and contact details of 1,033 companies worldwide.
For more details about this research report, please visit http://www.strategyr.com/Trucking_Industry_Market_Report.asp.
About Global Industry Analysts, Inc.: Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc. Telephone 408-528-9966 Fax 408-528-9977 Email press @ StrategyR.com Web Site www.StrategyR.com

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