North America Long-haul Transport Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Long-haul Transport Market Analysis
The North America long-haul transport market is expected to register a growth rate of over 4% during the forecast period of 2023-2028.
- According to the American Transportation Association's US Freight Transportation Forecast, freight trucking will grow by 24% in 2022. As a result, revenue will grow by 67%, which will benefit the transportation business. More freight transportation implies more work prospects for truck drivers, whether they be regional, OTR, or local.
- According to an industrial survey, in the United States, the average distance of haul before and during the pandemic (long-haul - 1,000+ miles per trip) was 32.7% and 22.7%, respectively. According to industry reports, short-haul or local trucking employment is recovering much more quickly from the COVID-19 pandemic-driven recession than long-haul truckload employment. According to the American Transportation Research Institute, between 2017-2022, truck drivers have gradually driven less than 1000 miles. So, the future of the trucking industry promises to include more local truck drivers.
- In contrast, the PPI (BLS Producer Price Index (PPI)) for the long-haul truckload business rose 9.6% Y-o-Y in February 2021, after climbing 9.8% in January 2021. As a result, the long-haul LTL PPI rose 2.9% Y-o-Y in February 2021, accelerating from a 1.5% annualized increase in January 2021. Long-haul volumes are more disruptive to the balance of truck supply in the United States, as trucks spend more time on the road with less availability to pick up freight. In addition to occupying more time to move, long-haul freight redistributes trucks across the country.
North America Long-haul Transport Market Trends
This section covers the major market trends shaping the North America Long-haul Transport Market according to our research experts:
Growing Automotive Market in the Region
The increasing focus on reducing vehicular emissions has shifted the focus of the automotive industry toward electric vehicles, which is driving the automotive market. With growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drive trains and fuel-efficient diesel engines in the coming years.
The new United States-Mexico-Canada Agreement (USMCA) is one development that may bring both challenges and opportunities for American carmakers and their global supply chains.
While NAFTA originally required automakers to use 62.5% of North American-made parts in their cars to be imported duty-free, the new agreement aims to gradually raise the bar to 75% by 2023, which may incentivize automakers to increase the number of North American-made parts that they use in their cars and light trucks.
The USMCA also mandates that automakers manufacture 40% of their motor vehicles in facilities where assembly workers earn at least USD 16 an hour. While average wages are even higher than those for auto assembly workers in Canada and the United States, they are not in Mexico. In recent years, several US automakers have shifted production to Mexico, in order to take advantage of the lower labor wages.
The role of incentives and mandates is key for the high demand for electric vehicles. The governments are providing several incentives to encourage the sales of electric vehicles, as all these countries are focusing on reducing their vehicle emissions.
In the United States, the EPA and NHTSA have proposed implementing the Safer Affordable Fuel-Efficient (SAFE) Vehicles rule from 2021 to 2026. The rule may set the standards for corporate average fuel economy and greenhouse gas emissions for passenger and light commercial vehicles. In addition, the Zero-emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV Program aims at putting 12 million ZEVs on the road by 2030.
However, the COVID-19 pandemic across the world and the implementation of the United States-Mexico-Canada (USMCA) trade agreement in 2020 remain a few crucial factors that are likely to hinder the market growth in the coming years. Among the countries in the region, Mexico has emerged as one of the largest auto manufacturing hubs, as automakers from the United States have established their production facilities there, owing to the many incentives offered by Mexico, such as low production costs and tariffs.
Growing Cross-border Trades from the United States
More than 50% of freight to North America from the United States is carried by trucks.
The freight demand is expected to increase in the future. Thus, the total weight of shipments transported domestically, by all modes, is expected to reach 20,940 million metric tons by 2045, out of which 14,235 million metric tons may be transported by trucks.
Canada and the United States have one of the world's greatest commercial ties, with over USD 1 trillion in bilateral commerce in products and services in 2021. Canada was the United States' greatest trading partner in goods and services that year. Long-standing bi-national supply chains underpin Canada-US commerce, with around 79% of Canadian commodities exports to the US absorbed into US supply chains.
Border crossings are potential bottlenecks in the freight transportation network. The Federal Highway Administration monitors truck crossing times at 15 designated truck lanes at the US-Canada border crossings. The US Department of Transportation, in partnership with the Texas Department of Transportation, also measures transit times from Mexico to the United States at the Bridge of the Americas and the Pharr-Reynosa International Bridge.
North America Long-haul Transport Industry Overview
The market is fragmented, with a large number of players. The trucking industry is currently marked by high levels of competition as each player tries to position themselves as the best service provider in terms of efficiency, effectiveness, and value for money. As a result, niches and sub-niches are developing within the sector to increase each player's competitive advantages.
The trucking industry has survived many crises and changes. There is nothing to suggest that the current challenges facing the industry are going to break it. On the contrary, it seems that major industry players such as Knight-Swift are taking advantage of the opportunities that come their way.
Some of the key players are UPS Inc., Fedex Corp., J.B. Hunt Transport Services, Knight-Swift Transport Services and YRC Worldwide.
North America Long-haul Transport Market Leaders
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UPS Inc.
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FedEx Corp.
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J.B. Hunt Transport Services
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Knight-Swift Transport Services
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YRC Worldwide
*Disclaimer: Major Players sorted in no particular order
North America Long-haul Transport Market News
June, 2022: FedEx Corp. announced it has received its first 150 electric delivery vehicles from BrightDrop, the technology startup from General Motors (GM) decarbonizing last-mile delivery. This marks a critical milestone for FedEx as the company plans to transform its entire parcel pickup and delivery (PUD) fleet to all-electric, zero-tailpipe emissions by 2040 and comes just months after BrightDrop'scommercialization of the Zevo600 as the fastest vehicle to market in GM's history.
April, 2022: Schneider announced that the company is growing its dedicated operations with the acquisition of Ohio-based truckload carrier Midwest Logistics Systems (MLS). MLS is a leading dedicated carrier with over 1,000 professional drivers, operating 900 tractors across 30 central U.S. locations. Schneider has acquired 100% of the equity interest in MLS. The carrier will run as an independent subsidiary of Schneider. MLS professional drivers and associates will continue to operate under the MLS name.
Janurary, 2022: Bassett and J.B. Hunt Transport Inc., the wholly-owned operating subsidiary of J.B. Hunt Transport Services Inc., have entered into a definitive agreement under which J.B. Hunt Transport will acquire the assets of Zenith Freight Lines LLC, a wholly-owned subsidiary of Bassett, for approximately USD 87 million.
North America Long-haul Transport Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Market Dynamics
- 4.2.1 Market Drivers
- 4.2.2 Market Restraints
- 4.2.3 Market Opportunities
- 4.3 Value Chain/Supply Chain Analysis
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Buyers/Consumers
- 4.4.2 Bargaining Power of Suppliers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Technological Advancements
- 4.6 Government Regulations and Initiatives
- 4.7 Insights into Intermodal
- 4.8 Demand and Supply Analysis (Trucks, Drivers, Labor, etc.)
- 4.9 Insights into Freight Rates
- 4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION (Market Size by Value)
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5.1 By Destination
- 5.1.1 Domestic
- 5.1.2 Cross-border
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5.2 By Country
- 5.2.1 United States
- 5.2.2 Canada
- 5.2.3 Mexico
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5.3 By End User
- 5.3.1 Manufacturing and Automotive
- 5.3.2 Oil and Gas, Mining, and Quarrying
- 5.3.3 Agriculture, Fishing, and Forestry
- 5.3.4 Construction
- 5.3.5 Distributive Trade (Wholesale and Retail Trade)
- 5.3.6 Pharmaceutical and Healthcare
- 5.3.7 Other End Users (Telecommunications, etc.)
6. COMPETITIVE LANDSCAPE
- 6.1 Overview
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6.2 Company Profiles
- 6.2.1 Knight-Swift Transportation Holdings Inc.
- 6.2.2 UPS Inc.
- 6.2.3 JB Hunt Transport Services
- 6.2.4 FedEx Corp.
- 6.2.5 YRC Worldwide
- 6.2.6 Bison Transport Inc.
- 6.2.7 TransX Group of Companies
- 6.2.8 YRC Freight
- 6.2.9 XPO Logistics
- 6.2.10 Werner Enterprises*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
North America Long-haul Transport Industry Segmentation
Long-haul trucking (sometimes called 'over-the-road' trucking) involves long-distance cargo movements by truck, usually using tractor-trailer combinations. Long-haul drivers are often away from home for days or weeks at a time.
The North American long-haul transport market is segmented by destination (domestic and cross-border), country (United States, Canada, and Mexico), end user (manufacturing and automotive, oil and gas, mining and quarrying, agriculture, fishing and forestry, construction, distributive trade (wholesale and retail trade), pharmaceutical and healthcare, and other end users, including telecommunications.
The report offers the market size and forecasts for the North American long-haul transport market in value (USD billion) for all the above segments. The report also covers the impact of Covid-19 on the market.
| By Destination | Domestic |
| Cross-border | |
| By Country | United States |
| Canada | |
| Mexico | |
| By End User | Manufacturing and Automotive |
| Oil and Gas, Mining, and Quarrying | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Distributive Trade (Wholesale and Retail Trade) | |
| Pharmaceutical and Healthcare | |
| Other End Users (Telecommunications, etc.) |
North America Long-haul Transport Market Research FAQs
What is the current North America Long-haul Transport Market size?
The North America Long-haul Transport Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in North America Long-haul Transport Market?
UPS Inc., FedEx Corp., J.B. Hunt Transport Services, Knight-Swift Transport Services and YRC Worldwide are the major companies operating in the North America Long-haul Transport Market.
What years does this North America Long-haul Transport Market cover?
The report covers the North America Long-haul Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America Long-haul Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Long-haul Transport Industry Report
Statistics for the 2024 North America Long-haul Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Long-haul Transport analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
