Truck Tonnage Index Fell 1.1% in September
Year-over-Year Largest Drop since Height of Pandemic
If you think you’re operating in a tougher environment than you’ve seen in years, you are correct! In September, American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.1% after rising 0.2% in August. After hitting what economists said was a bottom in April, tonnage had increased in three of the previous four months, gaining a total of 2.2% before September’s drop. The drop in tonnage erased half of the gains realized since April. Even worse, compared with September 2022, the SA index fell 4.1%, which was the seventh straight year-over-year decrease and the largest over that period. In August, the index was down 2.4% from a year earlier.
“The bottom has been hit in truck freight tonnage,” said ATA Chief Economist Bob Costello. “However, there could still be choppy waters ahead as the freight market remains volatile,” he said. It should also be noted that ATA’s index is dominated by contract freight as opposed to spot market freight.
ATA has been calculating the tonnage index since the 1970s, based on surveys from its membership. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
Every year, TAT (formerly called Truckers Against Trafficking) honors a member of the trucking, bus or energy industry, whose direct actions help save or improve the lives of those exploited or prevent human trafficking from taking place, with the Harriet Tubman Award
Bob Costello has indicated that the freight market has improved – but very slowly – since January. It must be said that ATA’s indices are dominated by contract freight as opposed to spot rates.
Now, however, with Republican control of both houses of Congress and the White House (and, some say, the Supreme Court) I am optimistic that trucking will get a fairer shake than it has during Biden’s term in office.