190 likes | 295 Views
Special Committee on Intermodal Transportation and Economic Expansion Workshop. October 23, 2009 Patrick E. Quinn Co-Chairman & President U.S. Xpress Enterprises. Industry Facts. Represents roughly 5% of the nation’s gross domestic product (GDP)
E N D
Special Committee on Intermodal Transportation and Economic Expansion Workshop October 23, 2009 Patrick E. Quinn Co-Chairman & President U.S. Xpress Enterprises
Industry Facts • Represents roughly 5% of the nation’s gross domestic product (GDP) • $660 billion industry, hauling 10.2 billion tons of freight annually • 8.9 million people throughout the economy employed in trucking jobs • 3.5 million truck drivers, including local & over-the-road
Industry Facts • Operates 2.0 million truck-tractors and 7.0 million total heavy duty commercial trucks • Class 8 trucks log 139 billion miles annually • Consumes 39 billion gallons of diesel annually • Exclusively serves over 80% of communities in the U.S.
Distribution of Tonnage by Mode: 2008 vs 2020 2008 2020 Source: U.S. Freight Transportation Forecast to…2020
U.S. For-Hire Trucking Employment Thousands Through September 2009 Lowest level since 1995 Sources: Department of Labor and ATA
Housing Price Index Average Annual Growth Rate: -9.4% 2006 – 2009:Q2 Average Annual Growth Rate: 15.0% 2000 - 2005 Average Annual Growth Rate: 4.4% 1987-1999 Sources: S&P/Case-Shiller National Index and ATA
U.S. Manufacturing Production Through August 2009; 2000 = 100 6.7% drop peak-to-trough 17.3% drop peak-to-trough Sources: Federal Reserve Board and ATA
Total Business Inventories-to-Sales Ratio (Includes retail, wholesale, and manufacturing; Through August 2009) Significant progress has been made to clear out bloated inventories. Sources: Department of Commerce and ATA
ATA’s For-Hire Truck Tonnage Index Seasonally Adjusted; 2000 = 100 Through August 2009 Aug: -7.5% from Aug 2008 Looks like a bottom, finally. Source: ATA
ATA’s For-Hire Truck Revenue Index 2000=100; Through August 2009 Aug: -24.9% from Aug 2008 Source: ATA
Trucking Failures Failures only includes fleets with at least five trucks Failures are surprisingly low, but truck counts are more important than the number of carriers that fail. Source: Avondale Partners, LLC
Fleets Continue to Downsize Cumulative Decrease Aug 2009 vs Aug 2008 ! This slide shows the change in the fleet size for those TL carriers that are surviving. It is not total industry capacity, which has fallen significantly more. Source: ATA’s Trucking Activity Report
U.S. Class 8 Truck Sales Monthly Retail Sales; Through August 2009 Truck sales are running well below historical replacement rates. No Pre-buy Here Source: Wards
On-Highway Diesel Prices Price Per Gallon Record: $4.76 (07/14/08) $2.58 (10/5/09) Source: Energy Information Administration
Top Industry Issues 2009 • Economy • Government Regulation • Fuel Issues • Congestion/Highway Infrastructure • Hours of Service • Commercial Driver Issues • Environmental Issues • Tolls/Highway Funding • Truck Size and Weight • Onboard Truck Technology
Congestion/Highway Infrastructure • FHWA report on top highway bottlenecks • 226 Million Hours Lost Annually • Cost $19 Billion/year (ATRI) • Physical bottlenecks account for 40% of congestion • ATA supports diesel tax increase provided funds dedicated to addressing bottlenecks
Tolls/Highway Funding • Fuel tax fairest, most efficient source of funding for highways • Oppose tolls on existing highways • High administrative costs • Cause diversion to local roads • Oppose privatization of existing highways • Would consider supporting shipper fees provided truck driver/carrier is not tax collector and no serious administrative/collection issues • Revenue should go to freight infrastructure projects proportionate to modal contribution
Truck Size and Weight • Reforms can produce safety, energy & emissions, economic benefits • ATA supports a process under which states can petition the federal government for regulatory relief • Support state option – no mandates
Commission Freight Recommendations • Create and fund a national freight transportation program in conjunction with States and metropolitan areas and consistent with a National Freight Transportation Plan, that eliminates chokepoints and increases throughput • Federal grants for meritorious projects • Establish dedicated freight fund