In order to analyze the effect of many factors on highway freight demand and to find the relationship between them effectively, the factors is divided into economic factors and elastic factors. To analyze the effect, key factor analysis method is used. The highway freight indexes from 1980 to 2005 in some province are computed using this method and the elastic coefficient is derived by analyzing the relationship between economic factors and elastic factors. The results show that key factor analysis method is useful to analyze highway freight demand.Highway freight elastic coefficient is the result of the joint action of Highway Freight Transportation System and economic system, and is the ratio of freight growth rate to economic growth rate. However, depending upon, if it is freight or economy, there are many evaluation indexes. In view of the complexity of multiple variables for statistical computing, it needs to integrate multiple variables, and then analyze the integration relationship of each index and freight demand. Thus, for the comprehensive and effective analysis of the effect of many indexes to freight demand and to reveal the link between highway freight, this paper puts forward the concept of the highway freight economic factors and elastic factor. It is calculated using factor analysis method, and obtains the elastic coefficient of the highway freight through the relationship between the economic factor and elastic factor.
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