Trucking Industry Rolls for 4th Straight Month

Courtesy of TireBusiness.com: Activity by the U.S. trucking industry rose in February for the fourth straight month, according to the latest American Trucking Associations’ truck tonnage index, but ATA Chief Economist Bob Costello cautioned the recovery could slow again for several reasons before picking up later in the year.

“Fitting with several other key economic indicators, truck tonnage is up earlier than we anticipated this year,” Mr. Costello said. “While I think this is a good sign for the industry and the economy, I’m still concerned that freight tonnage will slow in the months ahead as the federal government sequester continues and households finish spending their tax returns. “A little longer term, I think the economy and the industry are poised for a more robust recovery,” he said.

The ATA’s advanced seasonally adjusted For-Hire Truck Tonnage Index rose 0.6 percent in February after increasing 1 percent in January. Tonnage has now increased for four straight months, the ATA said, a run that hasn’t happened since late 2011. Over the November-February period, tonnage gained 7.7 percent, according to the ATA index.

The February tonnage index also was better than that in February 2012, the ATA said, by 4.2 percent, just shy of the 4.6 percent improvement in January. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, was 5.5 percent below January.

Freight transport by truck represents two-thirds of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.2 billion tons of freight in 2011, and motor carriers collected $603.9 billion in revenue, or nearly 81 percent of total revenue earned by all transport modes.

Category: General Update, Management