Transportation Stocks Eye Record on Economic Growth Hopes
C.H. Robinson Was Among Dow Jones Transportation Average's Top Performers
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A gauge of U.S. transportation stocks is on track to set a record, capping a steady recovery after a long slump fueled by the global trade turmoil last year.
The Dow Jones Transportation Average rose as much as 1.7% to 17,836.01 points, surpassing its most recent closing high recorded in November 2024.
Shares in the group were battered early last year by tariffs that curbed demand for goods shipments, as well as a stubbornly long downturn in the trucking market. Their rebound came amid broad strength in stocks linked to the health of the economy, with cyclical names outperforming the broader market recently on hopes for interest-rate cuts and accelerating economic growth in 2026.
“There has been a rotation over the last few months from some fully valued technology names to more overlooked sectors such as transportation,” said Dec Mullarkey, managing director at SLC Management. “With an optimistic growth outlook for 2026 consumer demand should remain strong and by extension transportation.”
The U.S. economy grew at an unexpectedly fast pace in the third quarter of 2025, according to a December report. On Jan. 5, airlines and logistics companies were among gainers as a U.S. military intervention in Venezuela raised hopes of lower fuel prices.
“Long-term, investors are expecting increased global oil supply from renewed Venezuelan production equating to lower jet fuel costs and an improved earnings outlook for airlines,” said James St. Aubin, chief investment officer at Ocean Park Asset Management.
Among the gauge’s best performers in 2025 were C.H. Robinson Worldwide Inc., surging 56%, as investors fawned over its use of artificial intelligence to cut costs. Railroad Norfolk Southern Corp. got a lift from its planned tie-up with Union Pacific Corp.
C.H. Robinson ranks No. 2 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 20 on the TT Top 50 list of the largest global freight companies.
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Despite the advance, there are still pockets of weakness. UPS Inc. shares fell 21% last year as the parcel carrier contended with tariffs and slashed business with Amazon.com Inc. Meanwhile, the Russell 3000 Trucking group ended the year in the red as most members slid, though it’s risen to kick off 2026.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. UPS Supply Chain Solutions is No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 3 on the TT Top 50 list of the largest global freight carriers.
Amazon.com Inc. ranks No. 1 on the TT100 logistics list, No. 15 on the TT100 list of the largest private carriers and No. 1 on the global freight list.
“The market is beginning to recognize the potential for improvement in the freight cycle,” Deutsche Bank analyst Richa Harnain wrote in a note last month. “This strong performance comes amidst a backdrop of considerable risk, with critical end markets like housing and automotive remaining challenged.”
