According to American Trucking Associations’ Chief Economist Bob Costello, trucking’s “slow, and choppy climb off of the bottom continued in October.”
After hitting a low in January of this year, …”tonnage is up a total of 3%, plus the index is up sequentially in three of the last four months,“ Costello said, indicating 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.
Just a day ago, Covenant Logistics’ co-founder and CEO David Parker predicted that the peak season, which started a week ago, will see positive growth through the holiday season. This is the first time in three or four years that peak freight is trending upward.
Trucking economists are closely watching interest rate cuts. Traditionally, rate cuts presage an increase in buying by three to six months, which could mean a strong trucking uptick in March or April as both businesses and consumers are ramping up their purchasing. Trucking also serves as an economic barometer because trucks carry 72.6% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.
ICSA will continue to keep you informed on the economy as the U. S. transitions to a new president and administration.
Looking back on the 2016 and 2020 campaigns, as well as his first term in office, President Trump was a vocal supporter of trucking, highlighting trucks on the White House lawn and as background images for campaign rallies and speaking positively about the industry.
Each January, ICSA recommends its members log on and take the online training to become TAT certified in spotting and reporting trafficking.
Since May 2020, truckers have been able to file DataQs requesting that the Federal Motor Carrier Safety Administration (FMCSA) evaluate the preventability of 16 specific crash types.