ATA Truck Tonnage Index
holds steady in July 2012
Aug 22, 2012 10:14 AM
The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index was unchanged in July 2012 after increasing 1.1% in June. (June’s gain was slightly smaller than the 1.2% increase ATA reported July 25.)
In July, the SA index stayed at 118.8 (2000=100). Compared with July 2011, the SA index was 4.1% higher—which was the largest year-over-year gain since February 2012. Year-to-date, versus the same period in 2011, tonnage was up 3.7%.
The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 119.4 in July, which was 2.8% below the previous month.
“July’s reading reflects an economy that has lost some steam, but hasn’t stalled,” said Bob Costello, ATA chief economist. “Certainly there has been some better economic news recently, but I continue to believe we will see some deceleration in tonnage during the second half of the year, if for nothing else but very tough comparisons on a robust August through December period in 2011.”
Costello said he believes the slowdown in new factory orders will constrain manufacturing output, which will impact truck freight volumes. He is also concerned about the recent jump in the total business (manufacturing, wholesale, and retail) inventory-to-sales ratio.
“Unintended gains in inventories will hit trucking negatively as the supply chain works off stocks,” he said. Costello kept his tonnage outlook for 2012 to the 3% to 3.5% range as reported in July.
Trucking serves as a barometer of the US economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.
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