BTS reports a slight decline in Freight TSI

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) fell 0.7 percent from January to February. This follows a 0.5 percent December to January increase.

According to BTS officials, the Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The February Freight TSI at 122.2 was 1.2 percent below the all-time high of 123.7 from November 2014 and is 29.0 percent above the recent low of 94.7 recorded in April 2009.

BTS said the sequential decline from January to February was due to substantial declines in trucking and pipeline, and a smaller decrease in rail intermodal, while air freight, water, and rail carloads all saw gains.

“The TSI decrease paralleled a drop in the Federal Reserve Board Industrial Production Index, which declined by 0.5 percent in February (reversing its decline in January), with particular declines in mining (1.4 percent) and utilities (4.0 percent),” said BTS. “The ISM Manufacturing Index, though it increased, was again below 50, indicating declining manufacturing activity. Value of manufacturers’ inventories decreased again in January, though inventory to sales ratios remained high.”

Through the first two months of 2016, the Freight TSI is up 0.6 percent.