b'4American Journal ofTransportation ajot.comTrucking industry readying for 2025 Rail short-lines long The trucking Industry prepares for 2025 by focusing on serviceon serviceand yield management.By Debra N. Phillips, AJOT Short-line railroads are small businesses, delivering large benefits to the economyForthetruckingindustry,2024wasathere was a 10% drop in the number of motor challengingyear.Freightdemandandratescarriersin2024.DuringthefirsthalfofBy Debra N. Phillips, AJOTdecreased, while operating expenses increased2024,nearly10,000motorcarriersclosed, by 25% for trucking companies, according toaccordingto Truckinfo.net. TheseincludedBiggerisnotalwayshave fewer layers of bureau-the American Trucking Associations(ATA).long-termcarriers,like ArnoldTransporta- better.In2024,smallbusi- cracy.Theyalsotendto At the same time, the industry was navigatingtionServices,a92-year-oldcompanythatnessesacrossallindustriesbecome ingrained in the com-regulatory issues and the need for tort reformfiled for Chapter 7 bankruptcy in May 2024.generatedmanynewjobs,munitiestheyserveandare toaddressnuclearverdicts,atermrefer- TonysExpress,a70-year-oldCaliforniadrovelocaleconomicactiv- open to new opportunities for trucking company closed itsity,andincreasedrevenuesrevenue, either through incre-doors, also in May 2024. throughouttheUSdespitemental business with existing some of the broader economiccustomersorbyofferinga w hatd oes2025challenges that may have hadwide range of services.h old ins toRe foR the a greater impact on larger orShort-linerailroadsare t Ruckingi ndustRy ?more mature companies. considered the scrappy, entre-TheBureauofTrans- Similarly, Americas short- preneurialplayersintherail portationStatistics(BTS),line railroads, approximatelyindustry,saidBaker.They agovernmentagencythat600smallbusinesses,haveare also necessary.collects,analyzes,andpub- remainedstableduringa lishesinformationaboutthetimeofvolatilityamongc Rucial to theo veRalltransportation systems in themanymodesoftransporta- us f Reightn etwoRkUSpredictsthat2025willtionandsignificantsupplyTheyarealsocrucialto beanotherchallengingyearchain disruptions. theU.S.freightnetwork. for the trucking industry dueForshort-linerailroads,Operating50,000milesof toeconomicconditionsanditsbeensteadyasshegoestrack, or 29% of freight rail evolving market dynamics. in2024,saidChuckBaker,intheU.S.,short-linerail-ring to jury awards of more than $10 millionThe BTS report states that As we enterPresidentoftheAmericanroads play a key part in the in damages for tucking accidents, even if the2025, the US economy is a modest slowdown,Short Line and Regional Rail- hub-and-spoke transportation carrier was not totally at fault. For an industrywithGDPgrowthprojectedtomoderatetoroad Association (ASLRRA).networks of most the nations with razor-thin margins, these difficult condi- 2.0% year-over-year. This deceleration reflectsWe expect the same in 2025. Class 1 railroads.tions led to many trucking companies closingthecumulativeimpactsoftightermonetaryLikeothersmallbusi- First and foremost, we need their doors in the past year. policy, higher interest rates, and more cautiousnesses,short-linerailroadstorememberthattheentire AccordingtotheFederalMotorCar- consumer spending. areachievingstablegrowth(LONGcontinued on rierSafetyAdministration(FMCSA)data,(READYINGcontinued on page 10) becausetheyarenimbleandpage 12)Serving Hawaii Is Our BusinessPasha Hawaiis dynamic shipping network and knowledgeable professionals are here to serve your supply chain needs. Pasha offers the broadest range of container and roll-on/roll-off services between Hawaii and the Mainland, with connections to comprehensive intermodal services nationwide. Find out more at pashahawaii.com.10x8-1:2pg.indd 1 12/5/24 12:03 PM'