A transport company is a company that transports cargo from one location to another, which is key in the manufacturing value chain. We are doing everything we can to ensure that our content is useful, accurate and safe. If, by any chance, you detect an inappropriate comment while browsing our website, please use this form to let us know and we will deal with it shortly. Have you forgotten your password? Get it back.
The transport sector is a category of companies that provide services to move people or goods, as well as transport infrastructure. Technically, transportation is a subgroup of the industrial sector according to the Global Industry Classification Standard (GICS). The transportation sector is comprised of several industries, including logistics and air transport, airlines, marine, road and rail, and transportation infrastructure. These industries are divided into sub-industries of air transport and logistics, airlines, maritime, railroads, trucks, airport services, roads and railways, and ports and maritime services.
In addition to railroads, the index now includes airlines, trucks, shipping, delivery services and logistics. Oil prices are a key factor for transportation, since the price of raw materials generally influences transportation costs. When demand for transportation services is high, the impact will be reflected in quarterly reports from transportation companies. Low energy costs can become a factor in driving the share price of several transportation companies, but the influence can also be reversed.
The transportation sector is one of the most diversified, with industrial companies representing airlines, railways, truckers, equipment and leasing, and logistics companies. TermDefinitionUnless otherwise stated or the context requires otherwise, these terms represent Swift Transportation Company and its subsidiaries. The Dow Jones Transportation Average (DJTA) is a price-weighted average of 20 transportation stocks traded in the United States. The performance of companies in the transport industry is very sensitive to fluctuations in company profits and the price of transport services.
You can invest in companies that move people and products by purchasing shares in individual transportation companies, or through industry-specific mutual funds or exchange-traded funds (ETFs) that specialize in the transportation sector. However, if demand for commercial transportation falls, this information could also cause oil prices to fall. In addition, the S&P Transportation Select Industry Index provides a secondary benchmark for the industry.