National trucking sector seeing some recovery

If the national trucking industry is the bellwether for the national economy, then Bob Costello’s expectation of “moderate growth” in the trucking sector are welcome words.

The American Trucking Associations’ advance seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 2.7% in November, following a 0.2% contraction in October. The latest gain boosted the index from 103.6 (2000 = 100) in October to 106.4, its highest level in a year, according to the ATA report.

Compared with November 2008, SA tonnage fell 3.5%, which was the best year-over-year showing in 12 months. However, the November 2008 comparisons were also down considerably from 2007 figures.
 
“Slowly, but surely, truck freight has started the recovery process and November’s solid increase is a very positive sign,” Costello, the senior economist for ATA, noted in the statement.

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.

Improved economic activity and the approaching end of business inventory reductions nationwide helped boost the November figures, Costello said. Despite the recent gains, Costello remains cautious in his optimism.

“While the economy and trucking is improving, the industry should not get overly excited about the sizeable increase in November,” Costello said. “I continue to believe that both the economy and truck tonnage will exhibit starts and stops in the months ahead, but the general trend should be for moderate growth.”

Moderate growth would be welcome in the corporate offices at Van Buren-based USA Truck Inc. and Fort Smith-based Arkansas Best Corp.

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. — the parent company of ABF Freight System — 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.