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North American volumes to grow 29pc as revenue soars 75pc by 2026

FREIGHT volumes in North America are expected to increase 28.6 per cent by 2026 while revenues from freight are expected to surge 75 per cent to US$1.52 trillion in the next 11 years due mainly to continued population growth, expansion of the US energy sector and foreign trade, according to a new report from the American Trucking Associations and IHS Global Insight.

Other findings in the report, US Freight Transportation Forecast to 2026, indicates that while trucking will remain the dominant mode of freight movement, its market will drop from 68.8 per cent in 2014 to 64.6 per cent by in 2026.

The report projects the number of Class 8 trucks in use will increase from the present 3.6 million to four million by 2026.

Rail freight will lose a percentage of the overall market share, dropping from 14.2 per cent in 2015 to 12.3 per cent in 2026. But the report found intermodal freight will be the second fastest growing mode, increasing 4.5 per cent annually through 2021 and 5.3 per cent per year after that, according to the American Shipper.

In the next 11 years, pipeline volumes will increase an average of 10.6 per cent per year and their share of freight will increase dramatically, from 10.8 per cent in 2015 to 18.1 per cent in 2026, due to tremendous growth in energy production in the US.

"The outlook for all modes of freight transportation remains bright," ATA economist Bob Costello said of the report. "Continued population growth, expansion of the energy sector and foreign trade will boost trucking, intermodal rail and pipeline shipments in particular."