The demand for trucking transportation is expected to increase significantly in the coming months, given current supply chain constraints. Therefore, we think it could be wise to bet on quality trucking stocks Ryder System (NYSE:R), ArcBest Corporation (NASDAQ:ARCB), and Daseke (NASDAQ:DSKE). Read on for a closer look at these names.The skyrocketing demand for raw materials, auto parts, and other goods has intensified the supply chain crisis, leading to a surge in demand for trucking transportation. With the economy opening up, the demand for truck-based transit is expected to continue rising. According to American Trucking Associations, a record 80,000 additional truck drivers are now needed to meet the nation’s freight demand. The situation has drawn investors’ attention to this space, as is in-part evidenced by the iShares Transportation Average ETF’s (IYT) 7.3% gains over the past month versus the SPDR S&P 500 ETF’s (SPY) 2.9% returns.
Furthermore, despite being hit by the COVID-19 pandemic, the global transportation industry is expected to grow at a 3.4% rate through 2027. Also, contract truckload volumes increased 3% year-over-year this month, while spot market volumes were approximately 120% higher.
Given this backdrop, we think it could be wise to bet on fundamentally strong trucking stocks Ryder System, Inc. (R), ArcBest Corporation (ARCB), and Daseke, Inc. (DSKE).