The ATA says that trucking has just had the best January in five years. Well, the best January as far as freight volume is concerned. The ATA tonnage index just showed the best January in the past five years, and not only that, it’s been up by significant percentage points every month for the past 5 months.
“Tonnage has surged at least 2.4% every month since November, gaining a total of 9.1% over that period,” stated ATA. “As a result, the SA index equaled 125.2 [2000=100] in January vs. 121.7 in December. Compared with January 2012, the SA index was up a robust 6.5%, the best year-over-year result since December 2011.”
These gains are over a relatively short period of time, but it appears that the momentum may only just be getting started.
“We think this rally still has legs,” said analyst Peter Nesvold. “Historically, when the [transport] group has started to rally off these unusual lows, there was roughly a 35 percentage point swing in the relative performance. With only three points of that in the rear view mirror, we believe it’s full speed ahead!”
Contributing to the gains have been the recovery process for Hurricane Sandy, the increased interest in the new housing market, and of course the shipping of raw and manufactured goods over the holiday season. Even without considering these significant factors, gains have still been made. The general resurgence of the economy is being shown clearly though the increase of freight.
According to the ATA, the trucking industry serves as a “barometer of the U.S. economy.” It looks like trucking’s back on the rise.
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Source: fleetowner
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