Transport Trucking Digging its way Out of the Recession

The latest stock market numbers have finally erased the remnants of the recession that slammed down hard on the nation four-plus years ago. Some industries might not be so quick to say the recession isn’t still being felt. Transport trucking is certainly among those who are seeing a recovery – including a three percent increase from 2011 to 2012, according to a recent report.

Helping transport trucking and other freight industries out of the rough patch is a reduced energy cost, including natural gas, which is cheaper today than ever and a more viable option for industry like the railroads.

The Energy Information Administration said last fall that the falling price of diesel was to be widespread, giving the transport trucking industry a real boost as diesel is the number one fuel choice for the tractor trailers on the roadways today.

Trucking surpassed railroads as the top method for moving cargo in the U.S. some years back, but what’s good for the railroads is also good for transport trucking. The rail industry is looking at replacing coal shipments with shale oil, which has sparked an economic revival for some rail companies. There is also a burgeoning relationship developing between transport trucking and rail industries. According to transport experts, rail and trucking executives are looking to team up to get them over or through geographically challenging areas of the country. As consumers loosen their financial reins and start spending, cargo will start moving.

The recent sequester stalemate on Capitol Hill is not easing many fears that the country could be headed for another recession, but the housing market in the U.S. is a brighter light at the end of the ever fading recession tunnel. The turn around also spells relief for transport trucking, according to most economists. An economist for a major trucking association in the U.S. said the numbers regarding the housing market correlate with the direction the trucking industry goes. Another contributing factor is the increased activity in the nation’s ports on either coast and in the Gulf. One can also look at the statistics from the Bureau of Labor and Statistics regarding job reports, which last fall showed an increase of nearly 20,000 jobs.

While Americans are selling and buying domestic goods, imports are also on the rise, and everything has to get from point A to point B, and that’s where the transport trucking industry is seeing its role increasing and profits roll in.