The increase of the US economy was tied to freight transportation, ever since the past spike was driven to the trails of the very first American transcontinental railway in 1869. The current development of the intermodal capabilities and also the general renovation of America’s railway systems have had a similar rejuvenating influence of the nation’s economy. Many analysts have pointed to recent development in the transport industry as an index of the rapidly recovering economy, and with the anticipated upsurge in business in the eastern states as a result of conclusion of the Panama Canal in 2015, the destiny of the economy continues to seem very good within the longer term as well.
Transport could be the fourth-largest contributor to the economy behind food, healthcare, and home, and it’s also a major contributor to the employment market with its fiscal impact extending indirectly to any or all sections of the economy as a whole. The improved efficacy of freight handling the renovated intermodal systems will deliver will further encourage increase in job and keep transport costs down. This, in turn, is anticipated to fuel growth in consumer products that may further raise the demand for transportation services1. Some estimates are projecting that the quantity of freight in USA may double or even triple their 1998 volumes by the end-of the decade.
The early indicators of a transportation-led economic recovery are thought to be the strong operation of the share price of some of the greatest shipping firms like J. B. Hunt (JBHT). Transport giants United Parcel Service (UPS) and Federal Express have been experiencing a boom in earnings due mainly to the decrease of the US Postal Service. At once, the higher need for goods has fuelled constant growth in small shipping that itself creates more need for intermodal freight services to match that demand. On a top with strong rises in inventory value for most on the rear of a lot better than expected gains in Q4 of 20122 shares in railway transport companies have begun 2013.
Another critical factor in the transportation-led economic growth in the past few years has been the Government’s investment in developing the intermodal network3. The favorable effect of the stimulation is twofold, with an immediate effect on regional employment and also a continued contribution to economic growth due to increased cargo handling capabilities. This all suggests the transport sector is really one of the driving forces within the return to economic prosperity that’s beginning now.
References:
1. https://www.rita.dot.gov/bts/programs/freight_transportation/html/transportation.html
2. https://news.investors.com/business/030113-646340-transport-companies-rolling-with-economy-to-follow.htm
3. https://www.inboundlogistics.com/cms/article/transport-funding-who-gets-the-big-piece-of-pie/
