The freight transportation services index (TSI) dropped in September, down 9.9 percent compared to that month in 2008, reported Transport Topics Online. The drop represents the greatest Sept.-to-Sept. comparison in 20 years of TSI calculations.
The September decline, off by 0.5 percent from August, follows a three-month period of increase in which the index rose a total of 2.8 percent. Ten of the past 14 months have seen downed numbers.
Trucking only makes up a portion of the TSI, which considers the service output of for-hire transportation sectors. The seasonally-adjusted index also includes rail, inland waterway, pipeline, air and local transportation services.
The declining index report comes amid signs of recovery in the commercial vehicle market, but it still looks like a long haul back to normal industry demands, reports ACT Research. The firm provides data, forecasting and market analysis for the trucking industry, and publishes the North American Commercial Vehicle Outlook.
According to the outlook, production of Class 8 vehicles is expected to increase over the next year, but replacement levels will not likely be reached until 2011, reported TruckingInfo.com.
Kenny Vieth, senior analyst and partner of the firm, predicted a “slow recovery rather than a break-out.” Excess numbers of for-hire trucks isn’t expected to level off until the second half of next year, he said, keeping pressure on profits and prices in the transportation industry.
“When profitability does return to trucking, there will be significant pent up demand to replace older than normal fleets,” Vieth said.
Sources:
TransportTopicsOnline: DOT Freight Transportation Index Falls 9.9%
TruckingInfo.com: ACT: Getting to Normal Production Levels Will Be Slow Going.
Leave a Comment