Why is the transportation industry cyclical in nature

Some segments in the industry such as air transportation have gone through difficult times due to a cyclical nature, fluctuating fuel prices and other socio-economic and socio-political events.

Manufacturers and retail outlets and distribution centers handling imported containerized cargo rely on efficient transport and seaport operations.

non cyclical industry example

Third party logistics providers are a one-stop-shopping source for supply chain or transport services. Transport played a catalytic role in these migrations, transforming the economic and social geography of many nations.

Irrespective of if used or not, the accessibility conveyed by transportation is impacting the value of land. In some cases, due to the externalities there generate transportation activities can lower land value, particularly for residential activities. Improvement in the access to labor and a reduction in access costs, mainly by improved commuting local scale or the use of lower cost labor global scale.

Thus, transportation expands opportunities to acquire and sell a variety of commodities necessary for industrial and manufacturing systems.

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Transportation and Economic Development