An infographic that breaks the U.S. truckload market and how understanding it can help improve future planning.

1. © Coyote Logistics 2018. All rights reserved.
The US trucking industry is LARGE,
GROWING and EXTREMELY FRAGMENTED.
ANNUAL SPEND
BILLION TONS
of freight transported by
truck in 2016 alone
MILLION MILES
2 79 6.
FOR-HIRE COMMON CARRIERS
FOR INSIGHTS ON WHERETHE MARKET MAY BE
HEADED,TALKTOYOUR COYOTE REP, OR VISIT
RESOURCES.COYOTE.COM
What can the
tell us
about the
of the
There’s no question that the U.S. truckload market is complex, chaotic, and
uncertain. Its continual ebb and flow can make supply chain operations difficult for
shippers, carriers, and their transportation partners. These market fluctuations—
driven by supply and demand—yield a predictable pattern that, when better
understood, can help prepare your organization’s supply chain for the future.
HOW BIG IS THE MARKET?
Low barriers to entry (and exit), a limited regulatory environment and hundreds of thousands of
participants create a balance of supply and demand that is routinely vacillating from abundant demand
and deficit supply to abundant supply and deficit demand.
There are several large national carriers with +10,000-truck-fleets, but they do not form an oligarchy
capable of dictating terms to shippers.
97% operate
<20 TRUCKS
91% <6 TRUCKSoperate
12% The top 15 carriers account for less
than 12% of for-hire market revenue
Seasonal Demand Cycle
Annual Procurement Cycle
Market Capacity Cycle
5
WHO ARE THE CARRIERS?
WHAT DRIVES THE MARKET?
There are three major cycles at play in the industry. Two of them (the
annual procurement and seasonal demand cycles) are well
documented, easy to observe, and are relatively consistent.
COST
CAPACITY
SHIPPERDEM
AND
CARRIERSUPPLY
C1*
C2* EQUILIBRIUM
When the market is
attractive to carriers,
existing carriers will order
more trucks and
prospective carriers will
seek to enter. Supply will
eventually exceed demand
and rates will fall as
capacity is pulled from the
market setting up the next
inflationary leg of the cycle,
and so the cycle continues.
By comparing years of Coyote’s proprietary historical transactional truckload
data with specific industry indicators, Coyote found there was an order to
the chaos of the complex market – known as The Coyote Curve.
HOW CAN YOU PLAN FOR 2019?
Although many factors impact these market patterns, it is
reasonable – with the right data and partners – to forecast where
the market may be headed.
TAKE THE NEXT STEPS:
Develop a practical strategy
for planning that accounts
for the cycles
Take a data-driven approach
by partnering with a trusted
3PL provider
1 2
3 4
Create a multi-year
capacity and
procurement plan
Commit to becoming a
preferred shipper, regardless of
the market conditions
.
The third cycle — elusive capacity cycle – is
the hardest to observe, but the key to
understanding the industry.
WHAT IS THE COYOTE CURVE?
American Trucking Association, Reports, Trends, & Statistics, available at
https://www.trucking.org/News_and_Information_Reports_Industry_Data. aspx.
Based on 2017 Total Revenues relatives to estimated 2017 US trucking market size, ‘Transport Topics 2017 Top 100 For-Hire
Rankings’, available at http://www.ttnews.com/top100/for-hire/2017.
Cass Linehaul Index, Cass Information Systems, Inc. & Broughton Capital LLC, available at
https://www.cassinfo.com/transportation-expense-management/supply-chain-analysis/transportation-indexes/truckload-line
haul-index.aspx.
SOURCES
Requiring trucks greater
than 10,000 lbs to travel
a total of
CYCLE 1
50%
40%
30%
20%
10%
0.0%
-10.0%
-20.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
CYCLE 2 CYCLE 3 CYCLE 4