‘Modest’ gains expected in U.S. trucking sector

The trucking sector is improving but not by much.

The American Trucking Associations’ seasonally adjusted Tonnage Index dipped 0.2% in October, following a 0.3% dip in September. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 109.6 in October, up 1.6% from September.

Compared with October 2008, the seasonally-adjusted tonnage fell 5.2%, an improvement over the 7.3% decline in September.

“Repeating what I said last month, the trucking industry should not be alarmed by the small decreases in September and October,” ATA Chief Economist Bob Costello noted in a statement. “The economy is behaving as expected, with starts and stops. This is being reflected in truck tonnage, as well as most economic indicators.”

Retail and manufacturing, two primary drivers of trucking sector growth, “are exhibiting mild upward trend lines, which is the path I expect truck freight to take,” Costello noted.

Overall, Costello said the industry will see ups and downs in but the general trend should be “modest improvement.”

The execs and shareholders of the two publicly held trucking companies based in the area would welcome modest gains.

Van Buren-based USA Truck Inc. announced Oct. 22 a net loss of $1.6 million in the third quarter, compared to a gain of $2.4 million in the 200 quarter. Total revenue for the quarter was $96.171 million, down 34.1% from the same period in 2008.

Arkansas Best Corp. announced Oct. 21 a third quarter 2009 net loss of $5.6 million, compared to net income of $15.4 million in the third quarter of 2008. The Fort Smith-based transportation holding company has lost $50.17 million in the past four quarters.

David Humphrey, director of investor relations at Arkansas Best Corp., said their numbers are improving, but primarily because they are up against down numbers from previous years.

“Last week at the Stephens Transportation Conference, we said that through mid-November, ABF’s 4Q’09-to-date total tonnage per day, versus the same period in 2008, was down approximately 5%,” Humphrey said in an e-mail note to The City Wire. “We have had some market share gains but for the most part the improved tonnage change is a result of the comparisons from last year.”

Trucking 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, according to the ATA.