Fitch: Freight Transports to Remain Healthy in 2006

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itch Ratings said Tuesday that following a strong 2005 for the U.S. land-based freight transportation industry, it expects a strong showing from the industry again next year.

Continued strong demand this year has led to significant increases in freight railroad and trucking industry revenues and profits, Fitch said.

Although risks of slower 2006 U.S. economic growth have risen somewhat as a result of higher energy costs, demand for the goods transported by the nation's railroads and trucks is expected to remain relatively strong next year, Fitch said in a statement.

This, combined with efficiencies and cost controls put in place after the last recession, will help to support continued strength in operating cash flows, even if they are not at the same high levels seen over the past two years, it said.

Pricing is expected to remain strong heading into the new year but, like volumes, pricing growth will begin to moderate somewhat, Fitch said.

Fitch is an international ratings agency that provides issuer and bond ratings.