Trucking news: ATA says seasonally-adjusted tonnage index inches up

Despite increase, industry still facing tough market conditions

Jeff Berman, Group News Editor -- Logistics Management, 6/27/2008

ARLINGTON, Va.—The American Trucking Associations (ATA) said that its seasonally-adjusted for-hire Truck Tonnage Index was up 0.5 percent in May after dropping 0.6 percent in March (March’s index was initially reported as dropping 1.1 percent by the ATA).

This marks the first tonnage increase on a month-to-to-month basis since January, according to the ATA

May’s seasonally-adjusted index was 114.8 (2000=100), and the not seasonally-adjusted index was up 1.1 percent to 118.3. The ATA said that the seasonally-adjusted index was up 3.3 percent compared to May 2007, representing the seventh straight year-over-year monthly increase. April’s year-over-year gain was 2.2 percent, stated the ATA.  

Even though tonnage showed positive growth, it is clear that the trucking industry continues to feel the effects of increasing diesel prices, slow consumer spending and retailer performance, and general economic malaise.

“The fact that tonnage increased on a month-to-month basis for the first time in four months, as well as achieving its largest year-over-year gain since February of this year, is quite positive,” said ATA Chief Economist Bob Costello in a statement. “However, year-over-year comparisons continue to reflect the weakness of 2007 rather than robust growth in 2008.”

And in a May interview with LM, Costello said that at this point, rapidly rising fuel prices are a bigger problem for the motor carrier industry than freight volumes.  

“Surging fuel prices are weighing heavily on consumers too; and since trucks haul virtually all consumer goods at some point in the supply chain, the industry is being significantly impacted both directly through higher diesel prices and indirectly as consumers pay more for gasoline and have less money to spend on truck-transported goods,” said Costello.

Trucking serves as a barometer of the U.S. economy, because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. The ATA notes that it hauled 10.7 tons of freight in 2006, and that motor carriers collected $645.6 billion—or 83.8 percent—of total revenue earned by all transport modes.