First, trucking is an attractive market right now. Per the average estimation by analysts, the U.S. economy is likely to grow around 6% this year. Overall economic growth is good for truckers because increased production essentially means there will be more goods to be moved to more customers. The pent-up demand for manufactured and retail goods remains very strong.
Second, as the economic recovery continues on increased vaccinations and easing coronavirus-led restrictions, trucking volumes are expected to remain buoyant through the end of 2021. Strong e-commerce demand amid the pandemic also supports trucking volume growth.
Third, persistent driver shortage continues to plague the trucking industry. The demanding nature of the job among other factors is leading to high driver turnovers.
Fourth, according to the Cass Freight Index report, freight rates soared 42% year over year in August. With supply constraints likely to persist through the end of 2021 and freight demand expected to increase, trucking rates should remain elevated, thus boosting the top line of trucking companies. The Cass Freight Index reported that the freight rate is likely to increase 35% in 2021 year over year.
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