National trucking index swings up in September

Ups and downs in the American Trucking Associations’ trucking index is a great indicator of the ups and downs in the national economy.

The ATA truck tonnage index increased 1.7% in September after falling a revised 2.8% in August. The latest gain put the index at 108.7 (2000=100) in September from 106.9 in August.

Compared with September 2009, tonnage climbed 5.1%, which was well above August’s 2.9% year-over-year gain. Year-to-date, tonnage is up 6.1% compared with the same period in 2009.

But ATA Economist Bob Costello said recent trends indicate a freight volume that is leveling off.

“While I am glad to report that tonnage grew in September, the fact remains that truck freight volumes leveled off over the summer and early autumn. This is a reflection of an economy that is barely growing,” Costello noted in the statement.

On the good side, Costello said the trucking industry is “significantly smaller” — in terms of freight-hauling capacity — than it was prior to the recession and is better equipped to deal with slower than normal tonnage growth.

Economic ups and downs in the sector are reflected in recent earnings reports from Arkansas-based trucking companies.

Van Buren-based USA Truck remained in positive earnings with its third-quarter report, but the national long-haul company has lost $1.51 million for the first nine months of the year. The company earned $586,000 during the third quarter (reported Oct. 21), an improvement over the $4.7 million loss in the same period of 2009. The per share earnings of 6 cents were in line with analyst estimates.

A company statement noted: “While we are optimistic about the industry’s prospects as 2011 and beyond unfolds, we are bracing for what is likely to be two challenging quarters between now and next spring.”

One quarter after turning the corner to profitability, P.A.M. Transportation returned to a net loss. The Tontitown-based trucking company reported Oct. 27 a net quarterly loss of $490,727, still a huge improvement over last year’s third quarter loss of $1.22 million. Company officials blamed a softer freight market, increased costs related to driver turnover, and weather conditions in its Mexican operations for the setback.

According to the ATA, trucking serves as a barometer of the U.S. economy, representing nearly 68% of tonnage carried in 2008 by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 8.8 billion tons of freight in 2009. Motor carriers collected $544.4 billion, or 81.9% of total revenue earned by all transport modes.

The trucking sector is important to the Arkansas economy. Arkansas and Nebraska are tops in the country in in terms of percentage of total state employment being in the trucking sector, according to the ATA trends. In Arkansas, 3.7% of all people employed in the private sector worked for a trucking company, with 3.6% for Nebraska. California and Texas have the most people working in the trucking industry in terms of total numbers.