Market Trends of united states road freight transport Industry
The US dominates with 86% of regional GDP contribution, fueled by an infrastructure program that boosts ports and supply chains
- During the third quarter of 2022, the GDP of the transportation sector in the United States expanded from USD 536.40 billion in the second quarter to USD 550.40 billion due to heightened international trade activities propelling this growth. The intricate transportation and storage infrastructure network within the United States is a sophisticated mechanism to facilitate the movement of goods, individuals, and information across the nation. In 2022, the US government strategically allocated its federal spending on transportation and infrastructure, apportioning 39% toward highways, 28% to rail and mass transit, 22% to air travel, and 9% to water transportation.
- In 2021, the transportation services sector, valued at USD 1.9 trillion, constituted 8.4% of the GDP. This sector demonstrated a strong recovery, achieving a YoY growth rate of 12.34% in its contribution to the GDP. This growth encompasses various aspects of transportation, including for-hire, in-house, and household contributions, all amounting to a combined total value of USD 642.60 billion.
- In 2022, the US Department of Transportation revealed the Port Infrastructure Development Program by the Maritime Administration, securing over USD 703 million dedicated to bolstering 41 projects spanning 22 states and a territory. The primary goal of these initiatives is to amplify the capabilities of port facilities. The allocated funds are poised to enhance the dependability of supply chains by amplifying port capacity and durability, optimizing operational processes, reducing emissions originating from ports, and generating fresh job prospects within coastal seaports, Great Lakes ports, and inland river ports.
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The United States remained a net crude oil importer in 2022, importing about 6.28 million bpd of crude oil from 80 countries
- The price of gasoline has declined by 3.44% YoY and reached 0.847 USD/liter in 2022. In 2022, total petroleum exports were about 9.58 million barrels per day (b/d), and total petroleum imports were about 8.32 million b/d, making the United States an annual net total petroleum exporter for the third year in a row. Although the total annual petroleum exports of the United States were greater than total petroleum imports in 2020, 2021, and 2022, the United States still imported some crude oil and petroleum products from other countries to help supply domestic demand for petroleum and to supply international markets. The United States remained a net crude oil importer in 2022, importing about 6.28 million b/d of crude oil from 80 countries. Some of the crude oil that the United States imports is refined by US refineries into petroleum products such as gasoline, heating oil, diesel fuel, and jet fuel.
- The prices of diesel witnessed the maximum YoY growth rate of 29.16% in 2022 and reached 1.24 USD/liter. Unlike gas and jet fuel, demand for diesel recovered at a much faster pace from the pandemic. Diesel is used for transporting goods as well as powering construction, farming, and military vehicles and equipment.
- Many western states faced higher gas prices because of limited refining capacity. However, several refinery accidents throughout the year caused spikes in other regions as well. The average diesel fuel consumption in the United States amounted to around 3.85 million barrels daily in June 2023. Greater demand for North American diesel by Europe in the wake of the war in Ukraine kept diesel prices high.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The US economy is driven by bricks and mortar stores, with a share of 70% in overall retail sales
- The number of e-commerce users in the United States is expected to reach 289.9 million by 2027 from 264.5 million in 2021
- US boosts highway investment by 55% to improve infrastructure, targeting supply chain efficiency by 2026
- The United States is expected to remain the top exporter of petroleum products through 2050
- Rise in fuel prices registered in 2022 and H1 2023 owing to the Russia-Ukraine War, with a marginal decline in prices since H2 2023
- Commercial truck sales in the United States increased by 3.8% in 2022, up from 2021, totaling 476,000 units
- Growing exports and imports of petroleum along with growing truck driver wages driving road freight pricing in US
- The residue impact of the economic shutdown on global supply chains largely led to an increase in food and energy prices
- Agriculture, fishing, and forestry registered tremendous growth during the review period despite a reduction in the number of farms in 2022 in the United States
- The US manufacturing sector expanded by 12% YoY in 2022, led by the chemical and chemical products sub-segment
- Road infrastructure investments under the Bipartisan Infrastructure Law (2022-2026) focus on repairing existing roads and launching new road projects
- US retail imports are anticipating slowdown driven by supply chain challenges in 2023
- Commercial vehicle production and demand following a wave pattern owing to the adoption of electric vehicles in operating fleets in the country
- Investment in infrastructure worth USD 550 billion by 2026, to boost road freight volumes in the United States
- The volume of freight activity in the United States is expected to grow by 50% in terms of tonnage between 2020 and 2050
