Trucking index shows ‘bit of life’ in national economy

Although some locally based trucking companies still struggle to turn a profit, a trucking industry economist says the October freight numbers indicate a “bit of life” in the economic recovery.

The American Trucking Associations’ Truck Tonnage Index rose 0.8% in October after increasing a revised 1.8% in September. The latest gain put the index at 109.7 (2000=100) in October from 108.9 in September.

Compared with October 2009, tonnage climbed 6%, which was better than September’s 5.3% year-over-year gain. Year-to-date, tonnage is up 6.1% compared with the same period in 2009.

“October tonnage levels were at the highest level in three months, even after accounting for typical seasonal shipping patterns,” ATA Chief Economist Bob Costello said in a statement released Monday (Nov. 22). “These gains fit with reports out of both the manufacturing and retail sectors and show there is a little bit of life in this economic recovery.”

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.

A recent indication of life in the trucking sector and economy was the Oct. 14 earnings report from Lowell-based J.B. Hunt Transport Services.

The transportation company, one of the largest in the U.S., reported third-quarter net income of $52.2 million, well beyond a year ago third quarter results of $40 million.

“We continue to distance ourselves from the ‘Great Recession’ by increased revenues, operating income, net earnings and EPS of 18%, 29%, 31% and 32%, respectively, over last year’s third quarter,” J.B. Hunt President and CEO Kirk Thompson said in a statement.

The reports for Van Buren-based USA Truck and Fort Smith-based ABF Freight System were not as rosy as the J.B. Hunt report, but the did show improvements.

USA Truck remained in positive earnings with its third-quarter report released Oct. 21, but the national long-haul company lost $1.51 million for the first nine months of the year. However, the company’s net income loss of $1.51 million for the first nine months is an improvement over the $4.665 million lost during the same period of 2009.

The company earned $586,000 during the quarter, an improvement over the $4.7 million loss in the same period of 2009.

Arkansas Best reported Nov. 3 a third-quarter net income loss of $749,000, compared to a $5.573 million loss in the 2009 period. For the first nine months of the year, the company has lost $29.585 million, a tough number to swallow but still better than the $39.173 million lost in the same period of 2009.

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.