Transcript 2007 ATA Presentation Template

Special Committee on
Intermodal Transportation and
Economic Expansion Workshop
October 23, 2009
Patrick E. Quinn
Co-Chairman & President
U.S. Xpress Enterprises
Industry Facts
• Represents roughly 5% of the nation’s
gross domestic product (GDP)
• $660 billion industry, hauling 10.2 billion
tons of freight annually
•8.9 million people throughout the economy
employed in trucking jobs
• 3.5 million truck drivers, including local &
over-the-road
Industry Facts
• Operates 2.0 million truck-tractors and
7.0 million total heavy duty commercial
trucks
• Class 8 trucks log 139 billion miles
annually
•Consumes 39 billion gallons of diesel
annually
• Exclusively serves over 80% of
communities in the U.S.
Distribution of Tonnage by Mode:
2008 vs 2020
Rail
Intermodal
1.1%
Pipeline
9.9%
Rail
Intermodal
1.5%
Pipeline
8.5%
Air
0.1%
Air
0.1%
Water
5.7%
Water
6.3%
Rail Carload
13.3%
Rail Carload
13.8%
Truck
68.8%
2008
Source: U.S. Freight Transportation Forecast to…2020
Truck
70.9%
2020
Thousands
U.S. For-Hire Trucking
Employment
1,500
Through September 2009
1,400
1,300
Lowest level since 1995
1,200
1,100
1,000
1990
1992
1994
1996
1998
Sources: Department of Labor and ATA
2000
2002
2004
2006
2008
Housing Price Index
Average Annual Growth Rate: -9.4%
2006 – 2009:Q2
200
175
150
125
100
75
50
1987
1989
1991
1993
1995
1997
1999
2001
Sources: S&P/Case-Shiller National Index and ATA
2003
2005
2007
2009
U.S. Manufacturing Production
Through August 2009; 2000 = 100
115.0
110.0
105.0
100.0
6.7% drop peak-to-trough
95.0
17.3% drop peak-to-trough
90.0
1998
2000
2002
Sources: Federal Reserve Board and ATA
2004
2006
2008
Total Business Inventories-toSales Ratio
1.6
(Includes retail, wholesale, and manufacturing; Through August 2009)
Significant progress has been
made to clear out bloated
inventories.
1.5
1.4
1.3
1.2
1992
1994
1996
1998
2000
Sources: Department of Commerce and ATA
2002
2004
2006
2008
ATA’s For-Hire Truck Tonnage
Index
Seasonally Adjusted; 2000 = 100
125
Through August 2009
Aug: -7.5%
from Aug 2008
120
115
110
105
100
95
Looks like a bottom, finally.
1999
Source: ATA
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
150
140
ATA’s For-Hire Truck Revenue
Index
2000=100; Through August 2009
130
120
110
100
90
Aug: -24.9%
from Aug 2008
80
2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: ATA
Trucking Failures
Failures only includes fleets
with at least five trucks
1,400
1,200
Failures are surprisingly low, but truck
counts are more important than the
number of carriers that fail.
1,000
800
600
400
Source: Avondale Partners, LLC
Q1 09
Q1 08
Q1 07
Q1 06
Q1 05
Q1 04
Q1 03
Q1 02
Q1 01
Q1 00
200
Fleets Continue to Downsize
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
-7%
-8%
-9%
-10%
Cumulative Decrease
Aug 2009 vs Aug 2008
! This slide shows the
change in the fleet size for
those TL carriers that are
surviving. It is not total
industry capacity, which has
fallen significantly more.
Last 9 Quarters
Source: ATA’s Trucking Activity Report
Year Earlier
U.S. Class 8 Truck Sales
Monthly Retail Sales; Through August 2009
30,000
25,000
Truck sales are
running well below
historical
replacement rates.
20,000
15,000
10,000
5,000
0
No Pre-buy Here
2005
Source: Wards
2006
2007
2008
2009
On-Highway Diesel Prices
Price Per Gallon
Record: $4.76
(07/14/08)
$4.90
$4.40
$3.90
$3.40
$2.90
$2.40
$1.90
$2.58
(10/5/09)
$1.40
$0.90
Jan-94
Jan-96
Jan-98
Jan-00
Source: Energy Information Administration
Jan-02
Jan-04
Jan-06
Jan-08
Top Industry Issues 2009
1. Economy
2. Government Regulation
3. Fuel Issues
4. Congestion/Highway Infrastructure
5. Hours of Service
6. Commercial Driver Issues
7. Environmental Issues
8. Tolls/Highway Funding
9. Truck Size and Weight
10.Onboard Truck Technology
Congestion/Highway Infrastructure
FHWA report on top highway
bottlenecks
226 Million Hours Lost Annually
Cost $19 Billion/year (ATRI)
Physical bottlenecks account for 40%
of congestion
ATA supports diesel tax increase
provided funds dedicated to
addressing bottlenecks
Tolls/Highway Funding
Fuel tax fairest, most efficient source of funding for highways
Oppose tolls on existing highways
High administrative costs
Cause diversion to local roads
Oppose privatization of existing highways
Would consider supporting shipper fees provided truck
driver/carrier is not tax collector and no serious
administrative/collection issues
Revenue should go to freight infrastructure projects proportionate
to modal contribution
Truck Size and Weight
Reforms can produce safety, energy & emissions,
economic benefits
ATA supports a process under which states can
petition the federal government for regulatory relief
Support state option – no mandates
Commission Freight Recommendations
Create and fund a national freight transportation
program in conjunction with States and
metropolitan areas and consistent with a National
Freight Transportation Plan, that eliminates
chokepoints and increases throughput
Federal grants for meritorious projects
Establish dedicated freight fund