North America Cross Border Road Freight Transport Market Size
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 235.97 Billion |
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Market Size (2030) | USD 308.09 Billion |
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Largest Share by End User Industry | Manufacturing |
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CAGR (2024 - 2030) | 4.55 % |
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Largest Share by Country | United States |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
North America Cross Border Road Freight Transport Market Analysis
The North America Cross Border Road Freight Transport Market size is estimated at 235.97 billion USD in 2024, and is expected to reach 308.09 billion USD by 2030, growing at a CAGR of 4.55% during the forecast period (2024-2030).
235.97 Billion
Market Size in 2024 (USD)
308.09 Billion
Market Size in 2030 (USD)
3.58 %
CAGR (2017-2023)
4.55 %
CAGR (2024-2030)
Fastest Growing Market by End User Industry
5.37 %
Projected CAGR, Wholesale and Retail Trade, 2024-2030
The e-commerce market in the region is expected to record a CAGR of 11.25% during 2023-2027, driving the wholesale and retail trade end-user industry.
Largest Market by End User Industry
33.23 %
value share, Manufacturing, 2023
The land borders of the United States with Canada and Mexico serve as the crucial pathways for supply chains across North America, facilitating USD 3 billion in cross-border trade daily.
Largest Market by Country
85.82 %
value share, United States, 2023
The United States registered a YoY growth of around 17.59% in exports and 15.01% in imports in 2022, which supported the growth of the market.
Fastest Growing Market by Country
6.24 %
Projected CAGR, Mexico, 2024-2030
Mexico's total trade with the US increased 12% YoY to USD 64 billion in 2022, driving the growth of the market.
First Leading Market Player
0.64 %
market share, Ryder System, Inc., Inc.
Ryder Systems manages approximately 9,000 border crossings between Canada and the United States and Mexico and approximately 20,600 border crossings between the United States and Mexico each month.
The trade between the US and its neighbors, Canada and Mexico, constituted USD 1.6 trillion, or 24% of the total trade in 2022
- The land borders of the United States with Canada and Mexico serve as the primary and economically crucial pathways for supply chains across North America, facilitating approximately USD 3 billion in cross-border trade on a daily basis. In 2022, the total value of US international trade reached USD 6.5 trillion. Notably, trade between the United States and its neighbors, Canada and Mexico, constituted USD 1.6 trillion, or 24% of this total. North America's manufacturing industry faced increasing supply chain disruptions, rising costs, and a shrinking labor force. Similarly, the construction industry faced labor shortages and rising raw material prices, leading to the decline of the construction segment by 43.97% in 2021.
- In 2021, North America's cross-border road freight transport saw substantial growth. The US witnessed a 39% increase in agricultural exports to Mexico, reaching USD 25.5 billion, while Canada experienced a 12% rise, reaching USD 25 billion. This sector notably surged from an 8% to a 17.2% increase from 2020 to 2021, signifying a significant upturn in cross-border transportation of agriculture and forestry goods between these nations.
- The North American e-commerce industry is anticipated to grow at a substantial YoY growth of 11.25% during the period 2023-2027. Among the countries, the United States is expected to contribute the highest to the growth of the e-commerce retail market. Despite accounting for merely 5% of the global population, North America wields considerable influence over the global economy. Among the various markets experiencing notable expansion in North America, the retail e-commerce industry stands out. Moreover, the US manufacturing market is expected to amount to USD 14.1 billion by 2030.
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The United States dominated the cross border road freight market in North America
- In August 2022, the total transborder freight between the United States, Canada, and Mexico recorded a YoY increase of 13.9%. Road freight was a crucial mode of transportation in North America, wherein truck freight witnessed a YoY increase of 19% in August 2022. The busiest border crossing between Canada and the United States was at Windsor, Ontario, accounting for USD 131 billion in trade. In October 2022, the US Department of Transportation invested around USD 31 million to expand cargo infrastructure and strengthen the supply chain. The Government of Mexico initiated a USD 44 billion plan for 2020-2024, focusing on transportation infrastructure under the framework of the National Private Sector Infrastructure Investment Agreement.
- The top US imports included computer-related parts and machinery, at USD 44.2 billion, followed by vehicles, other than railway (USD 44.2 billion), whereas the top Canadian exports included mineral fuels, oils, and waxes, valued at a combined USD 103.2 billion in 2021. Trucks moved USD 30.8 billion in freight across the Canada-US border in the last month of 2021, accounting for 50.9% of the overall freight value crossing the northern border.
- During the forecast period, the North American cross border road freight transport market is expected to grow tremendously. One of the reasons for this growth is the Canadian government’s announcement of the funding for 29 new Road Safety Transfer Payment Programs in 2021, where the government would provide USD 12.5 million as funding. Transport Canada offers a maximum contribution of up to 75% of the total project-eligible costs. The projects would, in turn, facilitate trade influx in Canada in line with the Canada-United States-Mexico Agreement (CUSMA).
North America Cross Border Road Freight Transport Market Trends
Transportation and storage sector soars 18.97% in 2022 due to to e-commerce and infrastructure investments
- Transportation and storage in North America experienced a growth increase from 18.67% YoY in 2021 to 18.97% YoY in 2022 due to rising demand for warehouse and distribution centers for e-commerce. According to ATA, approximately 72.6% of the country's freight by weight is transported by trucks. In 2022, the US Department of Transportation unveiled the Port Infrastructure Development Program, allocating over USD 703 million for 41 projects spanning 22 states to enhance port capabilities, supply chain reliability, and job prospects.
- Transportation and warehousing contributed a GDP of MXN 1.84 trillion (USD 0.094 trillion) during the third quarter of 2022, marking a 0.62% quarterly increase and a substantial 21.3% surge compared to the previous year's corresponding period. The Infrastructure, Communications, and Transport Ministry, in collaboration with the public and private sectors, committed investments totaling MXN 768 billion (USD 39.38 billion) in 2022 to enhance Mexico's road and rail infrastructure. This comprehensive effort aims to modernize railways, highways, and bridges while also addressing road safety enhancements.
- In North America, the United States is the largest contributor to the GDP of the transportation and storage sector, accounting for 86% of the total North American transportation and storage sector's GDP. The United States contributes six times the combined value of Canada and Mexico. The Canadian government provided an additional CAD 1.9 billion (USD 1.46 billion) to the National Trade Corridors Fund over four years (2021-2025), which may spur investments in much-needed improvements to Canada's roads, rails, and shipping routes, build long-term resilience for the Canadian economy, and support internal trade.
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Low supply and high demand for natural gas in the United States are anticipated to increase natural gas prices
- In 2021, natural gas prices declined by 14.7% YoY. However, in 2022, natural gas prices recorded a YoY growth of 34.3%, and the YoY growth of gasoline prices stood at 2.02% due to high inflation and the Russia-Ukraine War. The supply of crude oil became more constrained, and the gasoline demand increased, which raised the price even higher. The diesel refining margins in the country were expected to decline by 38% in 2024. The prices are expected to keep dropping in 2024 and average close to USD 3.70/gal.
- The primary driver of high gas and diesel prices is the price of crude oil, which is now 75% higher than in 2021. For instance, in Canada, gas prices jumped by more than 50% in 2021, pushing the cost of a liter to more than USD 1.56 in many parts of the country. Similarly, many western states faced much higher gas prices in the United States because of more limited refining capacity.
- There has been a rapid rise in diesel fuel prices, squeezing freight transportation companies and their customers. The impact is evident more in Mexico, where about 80% of trucks are managed by small trucking companies or owner-operators. The increase in natural gas prices in the United States will inevitably spread to Mexico's gas and power markets. However, Mexico imports 80% of its fuel from the United States. Still, gas and diesel cost less in Mexico because the Mexican government offers subsidies to the trucking industry to offset operating expenses. A weaker-than-expected supply response in the United States, combined with high natural gas demand in domestic and export markets, is expected to increase the prices further.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Regional manufacturing sector gets a boost with CHIPS and Science Act and Green Manufacturing Initiative
- The e-commerce industry in North America grew by over 6.74% YoY in 2022, led by fashion and electronics sub-segments
- Canada ranked 7th in the Logistics Performance Index due to a rise in investment and infrastructure development
- US boosts highway investment by 55% to improve infrastructure, targeting supply chain efficiency by 2026
- National Export Strategy of the US aims to boost regional commerce by strengthening small businesses
- Fuel prices and driver wages, account for more than 60% of trucking operational costs share, rising the total road freight rates
- GM Group, a major truck supplier in North America, aims to produce 400,000 EVs in the region by mid-2024
- Growing gasoline prices and driver wages impacting road freight pricing despite government infrastructure investments
- A rise in gas prices acted as a major catalyst for increased PPI and CPI in the region
- Agriculture, fishing, and forestry registered the highest growth during the review period owing to rising trade under the US-Mexico-Canada Agreement (USMCA)
- The shift toward Mexico from China is expected to boost manufacturing production in the coming years
- Mexico government invested USD 394 million in boosting its logistic capabilities in 2023
- Increasing funding for road infrastructure projects in the region facilitates significant growth
- North America aims to domestically produce 25% of its Asian imports to increase regional integration
- Production and sales of commercial vehicles, especially heavy trucks, are increasing in the region
- Road transport infrastructure investments undertaken by regional economies along with booming trade boosting road freight volumes
- Road freight transportation dominated other modes in terms of tonnage handled and reached over 19 billion tons in 2022
North America Cross Border Road Freight Transport Industry Overview
The North America Cross Border Road Freight Transport Market is fragmented, with the top five companies occupying 1.49%. The major players in this market are Fastfrate Group, Knight-Swift Transportation Holdings Inc., Landstar System Inc., Ryder System, Inc. and United Parcel Service of America, Inc. (UPS) (sorted alphabetically).
North America Cross Border Road Freight Transport Market Leaders
Fastfrate Group
Knight-Swift Transportation Holdings Inc.
Landstar System Inc.
Ryder System, Inc.
United Parcel Service of America, Inc. (UPS)
Other important companies include Cowtown Express, DHL Group, Trans International Trucking, Werner Enterprises, XPO, Inc..
*Disclaimer: Major Players sorted in alphabetical order.
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North America Cross Border Road Freight Transport Market News
- October 2023: Ryder Systems continues to expand its multiclient warehouse network, adding a 400,000-square-foot distribution center in Aurora, Ill. The newly built facility is the latest addition to a now six-building campus totaling 2.4 million square feet, primarily serving shippers of consumer packaged goods (CPG), including food and beverage, food ingredients, health and beauty, household products, and general retail merchandise.
- September 2023: UPS has entered into an agreement to acquire MNX Global Logistics (MNX), a global time-critical logistics provider. MNX’s capabilities in radio-pharmaceuticals and temperature-controlled logistics will help UPS’ healthcare segment and clinical trial logistics subsidiary Marken meet the growing demand for these services. The transaction is expected to close by the end of the year.
- September 2023: Ryder Systems announced the deployment of its first BrightDrop Zevo 600 electric vans at four strategic Ryder facilities in California, Texas, and New York. Earlier in 2023, Ryder announced plans to introduce 4,000 BrightDrop electric vans to its fleet through 2025, with the first 200 ordered this year. With a cargo capacity of 615 cubic feet, BrightDrop’s electric light commercial van offers the benefits of an electric powertrain with ample cargo space.
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We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various regions pertaining to e-commerce industry trends, economic contribution of the transportation & storage sector, export and import trends among other key indicators.
North America Cross Border Road Freight Transport Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. GDP Distribution By Economic Activity
2.2. GDP Growth By Economic Activity
2.3. Economic Performance And Profile
2.3.1. Trends in E-Commerce Industry
2.3.2. Trends in Manufacturing Industry
2.4. Transport And Storage Sector GDP
2.5. Logistics Performance
2.5.1. Canada
2.5.2. Mexico
2.5.3. United States
2.6. Length Of Roads
2.7. Export Trends
2.8. Import Trends
2.9. Fuel Pricing Trends
2.10. Trucking Operational Costs
2.11. Trucking Fleet Size By Type
2.12. Major Truck Suppliers
2.13. Road Freight Tonnage Trends
2.14. Road Freight Pricing Trends
2.15. Modal Share
2.16. Inflation
2.17. Regulatory Framework
2.18. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)
3.1. End User Industry
3.1.1. Agriculture, Fishing, and Forestry
3.1.2. Construction
3.1.3. Manufacturing
3.1.4. Oil and Gas, Mining and Quarrying
3.1.5. Wholesale and Retail Trade
3.1.6. Others
3.2. Country
3.2.1. Canada
3.2.2. Mexico
3.2.3. United States
3.2.4. Rest of North America
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. Cowtown Express
4.4.2. DHL Group
4.4.3. Fastfrate Group
4.4.4. Knight-Swift Transportation Holdings Inc.
4.4.5. Landstar System Inc.
4.4.6. Ryder System, Inc.
4.4.7. Trans International Trucking
4.4.8. United Parcel Service of America, Inc. (UPS)
4.4.9. Werner Enterprises
4.4.10. XPO, Inc.
5. KEY STRATEGIC QUESTIONS FOR ROAD FREIGHT CEOS
6. APPENDIX
6.1. Global Logistics Market Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (Market Drivers, Restraints & Opportunities)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
6.7. Currency Exchange Rate
List of Tables & Figures
- Figure 1:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, NORTH AMERICA, 2022
- Figure 2:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, NORTH AMERICA, 2017 – 2022
- Figure 3:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, NORTH AMERICA, 2017 - 2027
- Figure 4:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, NORTH AMERICA, 2022
- Figure 5:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, NORTH AMERICA, 2017 - 2022
- Figure 6:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, NORTH AMERICA, 2022
- Figure 7:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, NORTH AMERICA, 2017 – 2022
- Figure 8:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, NORTH AMERICA, 2017-2022
- Figure 9:
- RANK OF LOGISTICS PERFORMANCE, RANK, CANADA, 2010 - 2023
- Figure 10:
- RANK OF LOGISTICS PERFORMANCE, RANK, MEXICO, 2010 - 2023
- Figure 11:
- RANK OF LOGISTICS PERFORMANCE, RANK, UNITED STATES, 2010 - 2023
- Figure 12:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, NORTH AMERICA, 2022
- Figure 13:
- SHARE OF ROAD LENGTH BY SURFACE CLASSIFICATION, %, NORTH AMERICA, 2022
- Figure 14:
- VALUE OF EXPORTS, USD, NORTH AMERICA, 2017 - 2022
- Figure 15:
- VALUE OF IMPORTS, USD, NORTH AMERICA, 2017 - 2022
- Figure 16:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, NORTH AMERICA, 2017 - 2022
- Figure 17:
- OPERATIONAL COSTS OF TRUCKING - BREAKDOWN BY OPERATING COST ELEMENT, %, NORTH AMERICA, 2022
- Figure 18:
- TRUCKING FLEET SIZE BY TYPE, SHARE %, NORTH AMERICA, 2022
- Figure 19:
- MARKET SHARE OF MAJOR TRUCK SUPPLIER BRANDS, SHARE %, NORTH AMERICA, 2022
- Figure 20:
- FREIGHT HANDLED BY ROAD TRANSPORT, TONS, NORTH AMERICA, 2016 - 2028
- Figure 21:
- PRICE TREND OF ROAD FREIGHT TRANSPORT SERVICE, USD/TON-KM, NORTH AMERICA, 2016 - 2021
- Figure 22:
- MODAL SHARE OF FREIGHT TRANSPORTATION SECTOR, SHARE % BY TON-KM, NORTH AMERICA, 2022
- Figure 23:
- MODAL SHARE OF FREIGHT TRANSPORT SECTOR, SHARE % BY TONS, NORTH AMERICA, 2022
- Figure 24:
- WHOLESALE PRICE INFLATION RATE, %, NORTH AMERICA, 2017 - 2022
- Figure 25:
- CONSUMER PRICE INFLATION RATE, %, NORTH AMERICA, 2017 - 2022
- Figure 26:
- VOLUME OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 27:
- VALUE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 28:
- VOLUME OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 29:
- VALUE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, USD, NORTH AMERICA, 2017 - 2030
- Figure 30:
- VALUE SHARE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, NORTH AMERICA, 2017 - 2030
- Figure 31:
- VOLUME OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 32:
- VALUE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 33:
- VALUE SHARE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, NORTH AMERICA, 2022 VS 2030
- Figure 34:
- VOLUME OF CONSTRUCTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 35:
- VALUE OF CONSTRUCTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 36:
- VALUE SHARE OF CONSTRUCTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, NORTH AMERICA, 2022 VS 2030
- Figure 37:
- VOLUME OF MANUFACTURING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 38:
- VALUE OF MANUFACTURING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 39:
- VALUE SHARE OF MANUFACTURING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, NORTH AMERICA, 2022 VS 2030
- Figure 40:
- VOLUME OF OIL AND GAS, MINING AND QUARRYING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 41:
- VALUE OF OIL AND GAS, MINING AND QUARRYING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 42:
- VALUE SHARE OF EXTRACTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, NORTH AMERICA, 2022 VS 2030
- Figure 43:
- VOLUME OF WHOLESALE AND RETAIL TRADE INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 44:
- VALUE OF WHOLESALE AND RETAIL TRADE INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 45:
- VALUE SHARE OF WHOLESALE AND RETAIL TRADE INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, NORTH AMERICA, 2022 VS 2030
- Figure 46:
- VOLUME OF OTHERS INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, NORTH AMERICA, 2017 - 2030
- Figure 47:
- VALUE OF OTHERS INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, NORTH AMERICA, 2017 - 2030
- Figure 48:
- VALUE SHARE OF OTHERS INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, NORTH AMERICA, 2022 VS 2030
- Figure 49:
- VALUE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY COUNTRY, USD, NORTH AMERICA, 2017 - 2030
- Figure 50:
- VALUE SHARE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY COUNTRY, %, NORTH AMERICA, 2017 - 2030
- Figure 51:
- VALUE OF CANADA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, CANADA, 2017 - 2030
- Figure 52:
- CAGR OF CANADA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, CANADA, 2017 - 2030
- Figure 53:
- VALUE OF MEXICO CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, MEXICO, 2017 - 2030
- Figure 54:
- CAGR OF MEXICO CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, MEXICO, 2017 - 2030
- Figure 55:
- VALUE OF UNITED STATES CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 56:
- CAGR OF UNITED STATES CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, UNITED STATES, 2017 - 2030
- Figure 57:
- VALUE OF REST OF NORTH AMERICA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, REST OF NORTH AMERICA, 2017 - 2030
- Figure 58:
- CAGR OF REST OF NORTH AMERICA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, REST OF NORTH AMERICA, 2017 - 2030
- Figure 59:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, NORTH AMERICA, 2017 - 2023
- Figure 60:
- MOST ADOPTED STRATEGIES, COUNT, NORTH AMERICA, 2017 - 2023
- Figure 61:
- VALUE SHARE OF MAJOR PLAYERS, %, NORTH AMERICA 2022
North America Cross Border Road Freight Transport Industry Segmentation
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Canada, Mexico, United States are covered as segments by Country.
- The land borders of the United States with Canada and Mexico serve as the primary and economically crucial pathways for supply chains across North America, facilitating approximately USD 3 billion in cross-border trade on a daily basis. In 2022, the total value of US international trade reached USD 6.5 trillion. Notably, trade between the United States and its neighbors, Canada and Mexico, constituted USD 1.6 trillion, or 24% of this total. North America's manufacturing industry faced increasing supply chain disruptions, rising costs, and a shrinking labor force. Similarly, the construction industry faced labor shortages and rising raw material prices, leading to the decline of the construction segment by 43.97% in 2021.
- In 2021, North America's cross-border road freight transport saw substantial growth. The US witnessed a 39% increase in agricultural exports to Mexico, reaching USD 25.5 billion, while Canada experienced a 12% rise, reaching USD 25 billion. This sector notably surged from an 8% to a 17.2% increase from 2020 to 2021, signifying a significant upturn in cross-border transportation of agriculture and forestry goods between these nations.
- The North American e-commerce industry is anticipated to grow at a substantial YoY growth of 11.25% during the period 2023-2027. Among the countries, the United States is expected to contribute the highest to the growth of the e-commerce retail market. Despite accounting for merely 5% of the global population, North America wields considerable influence over the global economy. Among the various markets experiencing notable expansion in North America, the retail e-commerce industry stands out. Moreover, the US manufacturing market is expected to amount to USD 14.1 billion by 2030.
| End User Industry | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others |
| Country | |
| Canada | |
| Mexico | |
| United States | |
| Rest of North America |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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