Compared with October 2008, SA tonnage fell 5.2 percent, which was the best year-over-year showing since November 2008.' In September, the index was down 7.3 percent from a year earlier.
ATA Chief Economist Bob Costello said that the latest reading reflects an economic recovery that is still trying to gain balance, although it is on more solid ground than a year ago. ''Repeating what I said last month, the trucking industry should not be alarmed by the small decreases in September and October,' Costello noted.' 'The economy is behaving as expected, with starts and stops.' This is being reflected in truck tonnage, as well as most economic indicators.' He reiterated that the industry should remain prepared for ups and downs in the months ahead, but the general trend should be modest improvement.' 'Since consumer spending and manufacturing are not surging, trucking shouldn't expect robust growth either.' However, both retail sales and manufacturing output are exhibiting mild upward trend lines, which is the path I expect truck freight to take.'
Note on the impact of trucking company failures on the index: Each month, ATA asks its membership the amount of tonnage each carrier hauled, including all types of freight.' The indexes are calculated based on those responses.' The sample includes an array of trucking companies, ranging from small fleets to multi-billion dollar carriers. When a company in the sample fails, we include its final month of operation and zero it out for the following month, with the assumption that the remaining carriers pick up that freight.' As a result, it is close to a net wash and does not end up in a false increase.' Nevertheless, some carriers are picking up freight from failures, and it may have boosted the index. Due to our correction mentioned above, however, it should be limited.
Trucking serves as a barometer of the U.S. economy, representing nearly 69 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.
Trucks hauled 10.2 billion tons of freight in 2008. 'Motor carriers collected $660.3 billion, or 83.1 percent of total revenue earned by all transport modes.
ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 10th day of the month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.
