Safe and secure transportation of goods and products. Activities in the industry can be broken up into
two general groups: Truckload freight, or consignments weighing more than 10,000 pounds, and lessthan-
truckload (LTL) freight, which encompasses consignments less than 10,000 pounds. Although some
companies specialize in one segment, most operators provide truckload and LTL services. These
activ
ities are often coupled with other transportation services, such as logistics. Consequently, many
large firms also generate revenue that is not directly associated with this industry. As the demand from
manufacturing and the demand from wholesale trade increase, long-distance freight trucking is
expected to benefit. This industry is dominated by truckload carriers. Truckload carriers dedicate full trucks to one customer
and make door-to-door deliveries of goods, making this segment less labor intensive than LTL. Because
these carriers typically travel directly to the place of delivery, they do not need a network of terminals.Truckload carriers also have relatively low start-up costs since firms do not need intermediate freightconsolidation
facilities. This segment of the industry involves substantial competition, and labor is
typically not unionized. IBISWorld estimates that more than 80.0% of industry establishments are
truckload carriers, which contribute 58.8% of total revenue. The largest truckload carriers generally
have low profit margins and market shares and generate less revenue than LTL carriers. This segment is
has not changed significantly as a share of revenue over the past five years.LTL carriers take partial loads from multiple customers on a single truck and then route the goods
through a series of terminals where freight is transferred to other trucks with similar destinations. LTL
transportation providers often consolidate and deconsolidate numerous orders at individual service
centers based on time sensitivity of the freight being shipped. LTL is more labor intensive because
shipments are loaded and unloaded multiple times; the segment accounts for 35.0% of industry
employees and 40.0% of wages. Although orders are consolidated when possible, it is largely dependent
on the demand for a particular destination. With the improvement of helpful computer systems like
GPS, operators have been able to coordinate and plan shipping freight faster and with greater accuracy. Increased efficiency largely benefits the LTL segment, especially as fuel prices rise and operators strive
to cut costs. Consequently, IBISWorld estimates that LTL services have grown as a percentage of industry
revenue in the five years to 2012, representing 31.7%. Many trucking companies have been expanding the range of services offered to secure their place in
global supply chains. An emerging segment within the industry is value-added services, including doorto-
door transportation, customs brokerage, packing, logistics consultation services and other related
activities. Additional services include warehousing, distribution, repacking, storage and freight
forwarding. IBISWorld expects that these services will increase as a proportion of industry revenue over
the next five years; however, value-added services will be limited to large and medium-sized operators
and truck transportation will remain the largest revenue earner for major players. Revenue from other
segments is estimated to account for 9.5% of revenue.
