On the road: Improving economic conditions will boost demand, but interest rates will taper growth

Over the past five years, the Vehicle Shipping Services industry has steadily improved. Industry operators use trucks, railroads and ships to transport vehicles, such as cars and motorcycles. During the five years to 2018, low unemployment and improving income levels caused consumer spending on vehicles to drop, leading to increasing demand for vehicle shipping services. Additionally, low interest rates also caused demand for cars to surge. Over the five years to 2023, improving economic conditions and consumer income will boost demand for automobiles, leading to higher vehicle freight volumes and stronger revenue growth...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Increased vehicle sales continued into the latter half of the period, which bolstered demand for industry services
  • Railroad operators have increasingly captured market share from trucking operators
  • Improving economic conditions and consumer wealth may spur new vehicle purchases
  • Industry Report - Industry Products Chapter

    Rail transportation servicesTransporting vehicles by rail constitutes the highest revenue generating service of the Vehicle Shipping Services Industry, accounting for an estimated 52.0% of industry revenue in 2018. Generally, rail transportation services are divided into three services: bulk freight, intermodal services and passenger transportation. Bulk freight refers to the process of transporting unpackaged commodity cargo in large quantities whereas intermodal services refers to the transportation of freight in large intermodal containers, which do not need to be changed when switching modes of transportation. However, there are several types of cargo that are not suited for either bulk freight or intermodal transportation. The...purchase to read more.

    Additional Insights for the Vehicle Shipping Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vehicle Shipping Services Industry are

  • Ability to effectively manage risk
  • Reliability and quality of services
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as New car sales and Consumer Confidence Index in the Vehicle Shipping Services industry impact industry performance..

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    What's in this report

    What is the Vehicle Shipping Services Industry?

    Operators in this industry transport finished vehicles, such as cars, trucks, vans, buses, tractors and motorcycles, regionally and nationally. This industry includes operators that transport vehicles individually or part of a fleet but excludes operators that perform automobile towing services.

    Industry Products
  • Local trucking transportation services
  • Long-distance trucking transportation services
  • Rail transportation services
  • Ship transportation services
  • Industry Activities
  • Providing enclosed transport services
  • Providing schedule pickup and delivery services
  • Providing open-air vehicle transport services
  • Providing door-to-door delivery services
  • Providing terminal-to-terminal delivery services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • New car sales
  • Consumer Confidence Index
  • Yield on 10-year Treasury note
  • World price of crude oil

  • Current Performance
  • Demand improves
  • Internal dynamics
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • More moderate demand
  • Internal dynamics
  • Other trends
  • Table: Vehicle Shipping Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vehicle Shipping Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling
  • New Car Dealers
  • Used Car Dealers
  • Recreational Vehicle Dealers
  • Motorcycle Dealership and Repair

  • Key Selling Industries
  • Automobile Wholesaling
  • Petroleum Refining
  • Rail Maintenance Services
  • Ship Building
  • Train, Subway & Transit Car Manufacturing

  • Products & Services
  • Rail transportation services
  • Long-distance trucking transportation services
  • Local trucking transportation services
  • Ship transportation services
  • Chart: Vehicle Shipping Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports and imports
  • Dealerships
  • Wholesalers
  • Other
  • Rental companies
  • Chart: Major Market Segmentation for the Vehicle Shipping Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Vehicle Shipping Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vehicle Shipping Services Industry

  • Industry Globalization
    Union Pacific Corporation, CSX Corporation, Norfolk Southern Corporation, Burlington Northern Santa Fe LLC,
  • Table: Union Pacific Corporation - financial performance
  • Table: CSX Corporation - financial performance
  • Table: Norfolk Southern Corporation - financial performance
  • Table: Burlington Northern Santa Fe LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vehicle Shipping Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vehicle Shipping Services Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • New car sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Auto-Transport Trailers
  • Trailer specifically designed for transporting vehicles. A typical trailer can carry multiple cars on two levels.
  • Delivered In-Full On-Time
  • Refers to the percentage of trips delivered on time and without any complaints of being incomplete.
  • Fuel Surcharges
  • Operators charge a fee for increases in fuel prices, effectively passing on appropriate costs to clients.
  • Intermodal
  • Intermodal freight services involve the use of large containers that allow shippers to switch the mode of transportation easily.
  • Jones Act
  • A more informal name for the Merchant Marine Act of 1920, which requires all goods moved by water between US ports to be US-built, US-flagged and manned by US citizens and permanent residents.
  • Roll-On/Roll-Off Ships
  • Roll-on/roll-off ships or ro-ro ship are ships designed to carry wheeled vehicles that can drive themselves on or off the ship.
  • What Our Customers Say

    Why buy this report?

    The Vehicle Shipping Services Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Vehicle Shipping Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vehicle Shipping Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vehicle Shipping Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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