48-49 Transportation and Warehousing

Industries in the Air Transportation subsector provide air transportation of passengers and/or cargo using aircraft, such as airplanes, helicopters, and spacecraft. The subsector distinguishes scheduled from nonscheduled air transportation. Scheduled air carriers fly regular routes on regular schedules and operate even if flights are only partially loaded. Nonscheduled carriers often operate during nonpeak time slots at busy airports. These establishments have more flexibility with respect to choice of airport, hours of operation, load factors, and similar operational characteristics. Nonscheduled carriers provide chartered air transportation of passengers, cargo, or specialty flying services. Specialty flying services establishments use general purpose aircraft to provide a variety of specialized flying services. Scenic and sightseeing air transportation and air courier services are not included in this subsector but are included in Subsector 487, Scenic and Sightseeing Transportation, and in Subsector 492, Couriers and Messengers, respectively. Although these activities may use aircraft, they are different from the activities included in air transportation. Air sightseeing does not usually involve place-to-place transportation; the passenger's flight (e.g., balloon ride, aerial sightseeing) typically starts and ends at the same location. Courier services (individual package or cargo delivery) include more than air transportation; road transportation is usually required to deliver the cargo to the intended recipient.

Industries in the Rail Transportation subsector provide rail transportation of passengers and/or cargo using railroad rolling stock. The railroads in this subsector primarily either operate on networks, with physical facilities, labor force, and equipment spread over an extensive geographic area, or operate over a short distance on a local rail line. Scenic and sightseeing rail transportation and street railroads, commuter rail, and rapid transit are not included in this subsector but are included in Subsector 487, Scenic and Sightseeing Transportation, and Subsector 485, Transit and Ground Passenger Transportation, respectively. Although these activities use railroad rolling stock, they are different from the activities included in rail transportation. Sightseeing and scenic railroads do not usually involve place-to-place transportation; the passenger's trip typically starts and ends at the same location. Commuter railroads operate in a manner more consistent with local and urban transit and are often part of integrated transit systems.

Industries in the Water Transportation subsector provide water transportation of passengers and cargo using watercraft, such as ships, barges, and boats. The subsector is composed of two industry groups: (1) one for deep sea, coastal, and Great Lakes water transportation; and (2) one for inland water transportation. This split typically reflects the difference in equipment used. Scenic and sightseeing water transportation services are not included in this subsector but are included in Subsector 487, Scenic and Sightseeing Transportation. Although these activities use watercraft, they are different from the activities included in water transportation. Water sightseeing does not usually involve place-to-place transportation; the passenger's trip starts and ends at the same location.

Industries in the Truck Transportation subsector provide over-the-road transportation of cargo using motor vehicles, such as trucks and tractor trailers. The subsector is subdivided into general freight trucking and specialized freight trucking. This distinction reflects differences in equipment used, type of load carried, scheduling, terminal, and other networking services. General freight transportation establishments handle a wide variety of general commodities, generally palletized, and transported in a container or van trailer. Specialized freight transportation is the transportation of cargo that, because of size, weight, shape, or other inherent characteristics, requires specialized equipment for transportation. Each of these industry groups is further subdivided based on distance traveled. Local trucking establishments primarily carry goods within a single metropolitan area and its adjacent nonurban areas. Long-distance trucking establishments carry goods between metropolitan areas. The Specialized Freight Trucking industry group includes a separate industry for Used Household and Office Goods Moving. The household and office goods movers are separated because of the substantial network of establishments that has developed to deal with local and long-distance moving and the associated storage. In this area, the same establishment provides both local and long-distance services, while other specialized freight establishments generally limit their services to either local or long-distance hauling.

Industries in the Transit and Ground Passenger Transportation subsector include a variety of passenger transportation activities, such as urban transit systems; chartered bus, school bus, and interurban bus transportation; and taxis. These activities are distinguished based primarily on such production process factors as vehicle types, routes, and schedules. In this subsector, the principal splits identify scheduled transportation as separate from nonscheduled transportation. The scheduled transportation industry groups are Urban Transit Systems, Interurban and Rural Bus Transportation, and School and Employee Bus Transportation. The nonscheduled industry groups are the Charter Bus Industry and Taxi and Limousine Service. The Other Transit and Ground Passenger Transportation industry group includes both scheduled and nonscheduled transportation. Scenic and sightseeing ground transportation services are not included in this subsector but are included in Subsector 487, Scenic and Sightseeing Transportation. Sightseeing does not usually involve place-to-place transportation; the passenger's trip starts and ends at the same location.

Industries in the Pipeline Transportation subsector use transmission pipelines to transport products, such as crude oil, natural gas, refined petroleum products, and slurry. Industries are identified based on the products transported (i.e., pipeline transportation of crude oil, natural gas, refined petroleum products, and other products). The Pipeline Transportation of Natural Gas industry includes the storage of natural gas because the storage is usually done by the pipeline establishment and because a pipeline is inherently a network in which all the nodes are interdependent.

Industries in the Scenic and Sightseeing Transportation subsector utilize transportation equipment to provide recreation and entertainment. These activities have a production process distinct from passenger transportation carried out for the purpose of other types of for-hire transportation. This process does not emphasize efficient transportation; in fact, such activities often use obsolete vehicles, such as steam trains, to provide some extra ambience. The activity is local in nature, usually involving a same-day return to the point of departure. The Scenic and Sightseeing Transportation subsector is separated into three industries based on the mode: land, water, and other. Activities that are recreational in nature and involve participation by the customer, such as white water rafting, are generally excluded from this subsector, unless they impose an impact on part of the transportation system. Charter boat fishing, for example, is included in the Scenic and Sightseeing Transportation, Water industry.

Industries in the Support Activities for Transportation subsector provide services which support transportation. These services may be provided to transportation carrier establishments or to the general public. This subsector includes a wide array of establishments, including air traffic control services, marine cargo handling, and motor vehicle towing. The Support Activities for Transportation subsector includes services to transportation, separated by type of mode serviced. The Support Activities for Rail Transportation industry includes services to the rail industry (e.g., railroad switching and terminal establishments). Ship repair and maintenance services not done in a shipyard are included in the Other Support Activities for Water Transportation industry. An example would be floating drydock services in a harbor. Excluded from this subsector are establishments primarily engaged in providing factory conversion and overhaul of transportation equipment, which are classified in Subsector 336, Transportation Equipment Manufacturing. Establishments primarily engaged in providing rental and leasing of transportation equipment without operator are classified in Subsector 532, Rental and Leasing Services. Also, establishments primarily engaged in providing travel arrangement and reservation services are classified in Industry Group 5615, Travel Arrangement and Reservation Services.

The Postal Service subsector includes the activities of the National Post Office and its subcontractors operating under a universal service obligation to provide mail services, and using the infrastructure required to fulfill that obligation. These services include delivering letters and small parcels. These articles can be described as those that can be handled by one person without using special equipment. This allows the collection, pick-up, and delivery operations to be done with limited labor costs and minimal equipment. Sorting and transportation activities, where necessary, are generally mechanized. The restriction to small parcels distinguishes these establishments from those in the transportation industries. These establishments may also provide express delivery services using the infrastructure established for provision of basic mail services. The traditional activity of the National Postal Service is described in this subsector. Subcontractors include rural post offices on contract to the Postal Service. Bulk transportation of mail on contract to the Postal Service is not included here, because it is usually done by transportation establishments that carry other customers' cargo as well. Establishments that provide courier and express delivery services without operating under a universal service obligation are classified in Subsector 492, Couriers and Messengers.

Industries in the Couriers and Messengers subsector provide intercity, local, and/or international delivery of parcels and documents (including express delivery services) without operating under a universal service obligation. These articles may originate in the U.S. but be delivered to another country and can be described as those that may be handled by one person without using special equipment. This allows the collection, pick-up, and delivery operations to be done with limited labor costs and minimal equipment. Sorting and transportation activities, where necessary, are generally mechanized. The restriction to small parcels partly distinguishes these establishments from those in the transportation industries. The complete network of courier services establishments also distinguishes these transportation services from local messenger and delivery establishments in this subsector. This includes the establishments that perform intercity transportation as well as establishments that, under contract to them, perform local pick-up and delivery. Messengers, which usually deliver within a metropolitan or single urban area, may use bicycle, foot, car, small truck, or van.

Industries in the Warehousing and Storage subsector are primarily engaged in operating warehousing and storage facilities for general merchandise, refrigerated goods, and other warehouse products. These establishments provide facilities to store goods. They do not sell the goods they handle. These establishments take responsibility for storing the goods and keeping them secure. They may also provide a range of services, often referred to as logistics services, related to the distribution of goods. Logistics services can include labeling, breaking bulk, inventory control and management, light assembly, order entry and fulfillment, packaging, pick and pack, price marking and ticketing, and transportation arrangement. However, establishments in this industry group always provide warehousing or storage services in addition to any logistic services. Furthermore, the warehousing or storage of goods must be more than incidental to the performance of services, such as price marking. Bonded warehousing and storage services and warehouses located in free trade zones are included in the industries of this subsector.