Subscribe to our free, weekly email newsletter!


ATA reports sharp gain in seasonally-adjusted truck tonnage in December

By Jeff Berman, Group News Editor
January 22, 2014

With the economy continuing to show modest signs of progress, truck tonnage volumes ended 2013 on a positive note, according to data issued today by the American Trucking Associations (ATA).

Seasonally-adjusted (SA) truck tonnage in December ticked up 0.6 percent in December, following November’s impressive 4.7 percent gain (which was upwardly revised from a previous figure of 2.7 percent), as the index checked in at 131.7 in December compared to 130.9 in November. ATA officials said that the December SA stands as a new record-high and is up 8.2 percent compared to December 2012.

The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 123.0 in December, falling 1.4 percent below November’s 124.8.  The December NSA was up 10.3 percent annually.

As defined by the ATA, the not seasonally-adjusted index is assembled by adding up all the monthly tonnage data reported by the survey respondents (ATA member carriers) for the latest two months. Then a monthly percent change is calculated and then applied to the index number for the first month.

“Tonnage ended 2013 on a high note, which fits with many economic indicators as trucking is an excellent reflection of the tangible goods economy,” said ATA Chief Economist Bob Costello in a statement “The final quarter was the strongest we’ve seen in a couple of years, rising 2.2 percent from the third quarter and 9.1 percent from a year earlier. I’m seeing more broad-based gains now. The improvement is not limited to the tank truck and flatbed sectors like earlier in the year. With manufacturing and consumer spending picking up, coupled with solid volumes from hydraulic fracturing, I look for tonnage to be good in 2014 as well.”

This sentiment from Costello matched up with commentary from carriers that indicated the second half of 2013 was stronger than expected, as the manufacturing sector shows continued strength, coupled with good but not great holiday retail shopping and solid growth in the housing and automotive sectors, too.

In as recent interview with LM, Noel Perry, senior consultant at freight transportation consultancy FTR said paying attention to the general economy is where the assessment regarding future trucking capacity and growth really begins.

“There are two main concerns,” said Perry. “With the exception of the third quarter of 2013 (which saw GDP grow 3.6 percent), the economy has not truly accelerated in the last couple of years, and the multipliers on GDP that produce truck freight are relatively low and the combination of a relatively slow economy relatively low multipliers indicate trucking will grow between 2-3 percent [in 2014] on a base case.”

KeyBanc Capital Markets Analyst Todd Fowler wrote in a research note that both seasonally and non-seasonally adjusted tonnage reflect ongoing strength in capacity intensive automotive, energy-related and housing end markets.

“However, commentary in today’s release suggests strength is becoming more broad-based following a pick-up in manufacturing and consumer spending,” he wrote.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Jacksonville, Fla.-based Florida East Coast Railway (FECR), a 351-mile freight rail system on the state’s east coast, recently made two separate announcements. One had to do with an expansion of intermodal services between Charlotte, N.C. and various locations in South Florida and another was related to the company boosting its intermodal capacity through the addition of new equipment.

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Article Topics

News · Trucking · ATA · Tonnage · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA