Arkansas Transportation Report: 2016 off to a slow start for much of the sector

It’s been a tough start for the transportation sector in 2016, with most closely watched reports showing declines in trucking, rail and shipment revenue. The bright spot is a rise in air travel, although enplanements are down at two of Arkansas’ three largest airport.

River traffic is also showing growth in recent months. For the first quarter of 2016, river tonnage totaled 2.942 million tons, up 5% compared to the same period in 2014. Inbound tonnage is down 8%, outbound tonnage is up 8% and internal (shipments between ports on the system) is up 32%, according to a Corps report.

The freight environment remains inconsistent and ended the quarter on a down trend. The American Trucking Associations’ March tonnage index fell 4.5% after a 7.2% jump in February. Persistent high inventory levels among U.S. businesses have been an ongoing narrative.

“The freight economy continues to be mixed, with housing and consumer spending generally giving support to tonnage, while new fracking activity and factory output being drags. In addition, freight volumes are softer than the overall economy because of the current inventory overhang throughout the supply chain,” said Bob Costello, chief economist for the ATA.

Following are other key points in the Arkansas Transportation Report.
• The Clinton National Airport in Little Rock posted January-April enplanements of 295,121, up 1.85% compared to the same period in 2015. April enplanements totaled 80,050, up 0.74%.

• Cass Freight Index showed shipments in March were down 1.5% compared to March 2015 but up 1.4% from February. Shipment costs were down 7% compared to March 2015 and down 1% compared to February.

• U.S. enplanements in the March 2015-February 2016 period (the most recent data available through the U.S. Department of Transportation) totaled 810.866 million, up 5.06% compared to the same period in the previous year.

• For the week ending May 7, total U.S. weekly rail traffic was 492,923 carloads and intermodal units, down 10.6% compared with the same week last year, according to the Association of American Railroads.

The Arkansas Transportation Report is designed to keep our readers better informed of trends and data impacting one of the state’s most important industry sectors. The report is produced by Talk Business & Politics, and sponsored by th eArkansas Trucking Association and the Arkansas State Chamber of Commerce/Associated Industries of Arkansas.

Link here for a PDF copy of the May 2016 Arkansas Transportation Report.