National truck tonnage index moving ‘sideways’
by September 27, 2011 3:12 pm 75 views
The American Trucking Associations’ tonnage index — a closely watched gauge of the national economy — fell a scant 0.2% in August after falling a revised 0.3% in July.
The latest drop places the index at 114.4 (2000=100) in August, down from the July level of 114.6.
However, compared with August 2010, seasonally-adjusted tonnage was up 5.2%. In July, the tonnage index was 4.5% above a year earlier.
“Freight has been going sideways for much of this year, but it isn’t falling significantly either, which suggests the U.S. economy just might skirt another recession,” ATA Chief Economist Bob Costello said in the statement.
During 2011, the index down in five of the first eight months of the reported index.
January: up 3.5%
February: down 2.9%
March: up 1.9%
April: down 0.6%
May: down 2%
June: up 2.6%
July: down 0.8%
August: down 0.2%
Costello said he is hearing from carriers that they are moving as much freight as they can.
“In part, this is due to less industry supply. The number of trucks operated by the truckload industry is still down about 12% from the height in late 2006, yet tonnage levels are about the same as in late 2006,” Costello explained. “Additionally, most carriers are finding it very difficult to hire new truck drivers, which mean they can’t add too many trucks.”
The tonnage and freight demand issue has proven financially troubling to Fort Smith-based ABF Freight System and Van Buren-based USA Truck Inc.
ABF, a less-than-truckload carrier and the largest subsidiary of Arkansas Best Corp., just recently ended 10 consecutive quarters of losses with a second quarter net income of $5.298 million. Arkansas Best will need a solid third and fourth quarter to post a 2011 income gain. For the first six months of the year the company has a net loss of $7.51 million.
For the first half of 2011, USA Truck has an income loss of $2.118 million, up compared to a $2.096 million loss during the 2010 period. The company lost $2.7 million in the first quarter, and earned $598,000 in the second quarter.
