Transportation Industry Update
According to Ruan, an Iowa-based national trucking company that was founded during the Great Depression, the transportation industry is navigating a confluence of opportunities and challenges—regulatory pressures, innovative disruptions and changing marketplaces—as it aims to capitalize on increasing demand for freight and tightening capacity.
One of the most significant pressures the industry faces is a growing driver shortage. On Aug. 9, The Wall Street Journal reported rising freight costs due to the lack of labor have started to eat into earnings and growth. In a recent white paper, Ruan discusses the shortage. The paper notes that, according to the American Trucking Associations (ATA), U.S. freight volume increased 3.8 percent in 2017 and will 3.4 percent annually through 2023.
With a lack of drivers, how will the industry evolve? Check out Raun’s June 2018 Transportation Industry Update, now available to MSCI members on the organization’s website.