Executive Briefings

Short-Term Losses to Trucking from 'Superstorm' Sandy Will Easily Be Recouped, Analyst Says

The estimated loss of $140m per day that the trucking industry will sustain from down time associated with 'Superstorm' Sandy will ultimately be recouped because of resupply and rebuilding truck freight demands, according to Noel Perry, senior consultant with FTR Associates. The per-day estimate of loss revenue is based on 20 percent of the industry not moving freight because of the storm and its aftermath.

"While some fleets will surely lose revenue during the initial phases of the latest disaster, storms like Sandy create new demand later, " said Perry. "Retail outlets need immediate resupply that only trucking's time-sensitive character can accommodate. Plus storm damage needs to be fixed. That creates longer term additional freight tonnage. While the storm is devastating to many, the trucking industry will see mostly positive effects."

FTR Associates, located in Nashville, Ind., has been active in transportation forecasting for more than 20 years. The company's U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates' forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs.

Source: FTR Associates

"While some fleets will surely lose revenue during the initial phases of the latest disaster, storms like Sandy create new demand later, " said Perry. "Retail outlets need immediate resupply that only trucking's time-sensitive character can accommodate. Plus storm damage needs to be fixed. That creates longer term additional freight tonnage. While the storm is devastating to many, the trucking industry will see mostly positive effects."

FTR Associates, located in Nashville, Ind., has been active in transportation forecasting for more than 20 years. The company's U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates' forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs.

Source: FTR Associates