In March, the American Trucking Associations’ (ATA) For-Hire Truck Tonnage Index witnessed a 2% decline, following a revised 4% increase in February. The index, which is a critical measure of freight volumes hauled by trucks across the United States, settled at 113.4, down from 115.7 in February. This downturn reflects broader challenges within the trucking industry, as noted by ATA’s Chief Economist, Bob Costello.
According to Costello, the decrease in March is part of an ongoing freight recession that has persisted throughout the first quarter of 2024. The index overall dipped by 0.8% from the last quarter of 2023 and saw a 2.4% decrease compared to the same period last year. This trend underscores the economic pressures facing the trucking sector, which is often viewed as a barometer for the wider U.S. economy due to its role in transporting a significant portion of domestic goods.
The report further detailed that this March’s year-over-year tonnage fell by 1%, marking the thirteenth consecutive decline when compared annually. However, this decrease is noted as the second smallest drop in the past year, suggesting some stabilization in the rate of decline. In contrast, February’s index was 1.7% lower than the previous year.
On a non-seasonally adjusted basis, which represents the raw volume data without any seasonal impact, the tonnage stood at 114.4 in March. This figure is up by 4.7% from February, indicating some month-to-month recovery.
Trucking is integral to the U.S. economy, accounting for 72.6% of tonnage carried by all domestic freight transport modes. In 2022, trucks moved 11.46 billion tons of freight and generated $940.8 billion in revenue, which represents 80.7% of total earnings from all transport modes.
The ATA has been calculating this tonnage index since the 1970s, relying on surveys from its membership. It’s important to note that this index is dominated by contract freight rather than spot market freight, providing insights into the core, contractual transportation sector rather than the more volatile spot market. This preliminary data is revisited in a final report typically released around the fifth of each month, offering a more detailed analysis including month-to-month changes, year-over-year comparisons, and contextual economic indicators.
Source:
https://www.trucking.org/news-insights/ata-truck-tonnage-index-decreased-2-march
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