Trucking economist: No bottom yet for trucking sector

The news continues to be bad for the national trucking sector.

The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index fell 2.2% in April, after falling 4.5% in March. In April, the tonnage index equaled 99.2 (2000 = 100), which is its lowest level since November 2001.

Compared with April 2008, tonnage contracted 13.2%, which was the worst year-over-year decrease of the current cycle and the largest drop in 13 years. In March 2009, tonnage dropped 12.2% from a year earlier.

ATA Chief Economist Bob Costello said truck freight has yet to hit bottom and it could be a few more months before this occurs.

“While most key economic indicators are decreasing at a slower rate, the year-over-year contractions in truck tonnage accelerated because businesses are right-sizing their inventories, which means fewer truck shipments,” Costello noted in the statement. “The absolute dollar value of inventories has fallen, but sales have decreased as much or more, which means that inventories are still too high for the current level of sales. Until this correction is complete, freight will be tough for motor carriers.”

Fort Smith-based ABF Freight System saw its first-quarter tonnage drop 15.7% compared to the first quarter of 2008. Its second-quarter tonnage through mid-May is down 17%, according to company spokesman David Humphrey.
 
Trucking, according to ATA, serves as a barometer of the U.S. economy, representing nearly 69% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.2 billion tons of freight in 2008.