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Understanding consumer expectations and preferences has become critical to a retailer’s success in today’s operating environment. Successful businesses must stay ahead of the curve by identifying and adapting to emerging trends, whether in consumer behavior, drivers’ needs or industry practices.
One trend with a big impact on the travel center industry is the growth in freight tonnage.
The American Trucking Associations’ 2023-2034 Freight Forecast said total freight tonnage is rising and projected to grow 26.6% over the forecast period. “Look for an average annual increase of 2.0% per year from 2024 to 2034,” the report stated.
Truck volumes experienced a 1.3% increase in 2022 and an estimated 1.4% in 2023. ATA projects a 1.8% growth in 2024 before hitting its compound average annual rate of growth of 2%.
Trucks will continue to dominate the overall freight transportation landscape, accounting for 73% of total primary tonnage by 2034. Additionally, freight transportation revenue is forecasted to surge 45.6% by 2034.
Costello said cross-border freight is experiencing significant growth as a result of nearshoring. “I expect that to continue in the years ahead generally, including 2024. Growth with Mexico is better than with Canada. Mexico is now the U.S.’s No. 1 trading partner,” he said, adding that this is good for trucking, especially at critical entry points such as the U.S.-Mexico border crossing at Laredo, Texas.
A report by Ernst & Young presented at NATSO’s Fast Forward Focus noted that in 2022, freight value between the U.S. and Mexico increased by 18% over the previous year, with trucks accounting for 69% of value by mode. “This continues a trend of increased truck crossings into the U.S. from Mexico since 2020, with 2022 crossings exceeding 2019 by 12.7%,” the report said. (Read Four supply chain trends shaping the future of long-haul trucking in the United States here.)
Additionally, there are indications that the nearshoring trend is expanding to other Latin American countries. The U.S. has free trade agreements with 10 more countries in the region, which could provide new production and supplier locations to serve the U.S. market. Some of these markets could ship freight via trucks through Mexico to the U.S., while others would likely use ocean carriers bound for ports throughout the United States.
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Want more Trends Shaping the Truck Stop and Travel Center Industry in 2024? Access the Eight Trends Shaping the Truck Stop and Travel Center Industry in 2024 Toolkit from the NATSO Foundation here. |
// This article was created for Stop Watch magazine, the magazine of the NATSO Foundation. The NATSO Foundation is the research, education and public outreach subsidiary of NATSO, Inc. The NATSO Foundation provides programs and products to strengthen travel plazas’ ability to meet the traveling public's needs through improved operational performance and business planning. Visit www.natsofoundation.org for more information. (Donate to the NATSO Foundation here.)
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