Truck Tonnage Dropped 0.3% in October According to ATA Report
The American Trucking Associations recently reported that truck tonnage fell by 0.3% this past October. The seasonally adjusted For-Hire Truck Tonnage Index’s drop followed a 6.3% drop in September. In October, the index equated to 131.6 down from 131.9 in September. The record high was 144 in February
This is the second straight year where tonnage declined during this month. When it comes to totals not adjusted for seasonal changes, the tonnage equaled 138.2 in October, a 1.9% increase from the previous month.
ATA Chief Economist Bob Costello said: “While seasonally adjusted tonnage fell, meaning the not seasonally adjusted gain wasn’t as large as expected, the bottom of the current tonnage cycle should be near. There are some recent trends that suggest truck freight should improve, albeit gradually, soon.”
Costello also commented on the improvements during October, saying: “Retail sales, housing starts, and even factory output all improved in October, which is a good sign. Most importantly, there has been considerable progress made in clearing out excess stocks throughout the supply chain. While that correction is still ongoing, there has been enough improvement that the negative drag on tonnage shouldn’t be as large going forward.”
ATA’s calculations are based upon surveys from members, and this figure helps to provide more insight about the economy as a whole. Given that trucking’s figures service as somewhat of a guide due to the fact that the freight industry handles over 70% of all tonnage, a report like this is of great interest to those in and outside the industry.