Truck Tonnage Index Fell 3% in April

For-hire truck tonnage fell 3% in April, following a revised gain of 0.4% during the previous month, according to the American Trucking Associations (ATA).

Compared with April 2014, the index increased just 1%, which was well below the 4.2% gain in March and the smallest year-over-year gain since February 2013. Year-to-date through April, compared with the same period last year, tonnage was up 3.8%.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 130.6 in April which was 5.9% below the previous month (138.7).

“Like most economic indicators, truck tonnage was soft in April,” said ATA Chief Economist Bob Costello. “Unless tonnage snaps back in May and June, GDP growth will likely be suppressed in the second quarter.”

Costello added that truck tonnage is off 5.3% from the high in January. “The next couple of months will be telling for both truck freight and the broader economy. Any significant jump from the first quarter is looking more doubtful,” he said.

Trucking serves as a barometer of the U.S. economy, representing 68.8% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled just under 10 billion tons of freight in 2014. Motor carriers collected $700.4 billion, or 80.3% of total revenue earned by all transport modes.

Category: Featured, General Update