Overview of Trucking Business Indicators
CCJ‘s Indicators provides a summary of the most recent reports on various aspects of the trucking industry, including rates, freight, equipment, and economic conditions.
Employment in the Trucking Industry Stays Flat
According to the Department of Labor’s Employment Situation Report, the for-hire trucking sector saw little change in employment for September, with a decrease of 100 jobs. Overall, trucking employment has remained largely stable throughout the year, aside from a few strong months early on.
Broader Economic Job Losses
The U.S. economy experienced a loss of 33,000 jobs in September, attributed to the impact of hurricanes Irma and Harvey on payroll figures. This marked the first monthly job decline in seven years, although the unemployment rate fell to a 16-year low of 4.2 percent.
Current Trucking Employment Statistics
The total employment in the for-hire trucking industry stands at 1.4712 million, excluding private fleets and focusing only on payroll employees. Year-over-year, trucking employment has increased by 16,800 jobs compared to last September.
Job Changes in Related Industries
In September, the construction industry added 8,000 jobs, while manufacturing saw a decrease of 1,000. The transportation and warehousing sector gained 21,800 jobs, significantly influenced by the hurricanes, with the transit and ground passenger transportation sector contributing 9,400 new jobs and warehousing adding nearly 5,000 positions.
Shippers Conditions Favorable for Carriers
The tightening of capacity and rising rates has caused the Shippers Conditions Index, which tracks economic factors influencing shippers, to enter negative territory—a situation typically favorable for carriers, especially in rate negotiations.
Future Market Predictions
While rate increases have primarily been seen in the spot market, there is an expectation for this pressure to also affect the contract market. FTR predicts a continued decline in the Shippers Conditions Index throughout this year and into the next. FTR Chief Operating Officer Jonathan Starks notes, “As hurricane disruptions gradually decrease, the recovery phase will remain active for several months. Coupled with the upcoming ELD implementation, rising fuel prices, and a moderate increase in freight demand, we anticipate a more negative market as we approach the end of 2017 and enter 2018.”
