As of October 2016, the American Trucking Associations or ATA’s recorded advanced seasonally adjusted (SA) For-Hire Truck Index had decreased to 0.3%. This happens following a 6.3% drop during the month of September. Based on the generated data in October, the index only equaled to 131.6 which is down compared to 131.9 during the month of September. It can be remembered that the highest recorded trucking index for the year 2016 is at 144 back in February. When compared to the data on October 2015, the SA index has noticeably fell about 0.9%. This is now the second straight recorded decline consecutively happening year over year. On the other hand, the year over year drop in September was at 1.3%.
Generally, as of year-to-date data, the tonnage was up to 2.5% compared to the tonnage recorded in the same period last year 2015. In addition, the non-seasonal adjustmentindex, that is representing the difference in tonnage that were actually transported by the trucks prior to the seasonal adjustments, in October was at 138.2. The October SA index was 1.9% above compared to only 135.6 during the month of September. Bob Castello, the ATA Chief Economist remains positive stating that while the SA tonnage has dropped, which means the non-seasonally adjusted return was not as huge as typically expected, the end of the present tonnage cycle is drawing near. He also added that there are some recent trends which are suggesting that the truck freight should gradually see an improvement soon.
Despite the tonnage drop, Castello has claimed that this tonnage drop should not be as large moving forward. According to him, the sales from retails, housing starts, and the factory yields have all shown improvements in October, which is a positiveindicator. Likewise, Castello has added that there has been a substantial amount of progress as a result of clearing out of excess stocks all through the chain of supply. Even while the correction isstill going on, there are alreadysignificant improvementshence, the negative dip on the tonnage index shouldnot be that huge moving forward. The trucking industry has essentially become a barometer of the US economy. Trucking now represents 70.1% of tonnage which are carried by all forms of domestic freight transportation, such as retail and manufactured goods. Overall, the trucks have hauled almost 10.5 billion tons of freight in the year 2015. While motor carriers collected about $726.4 billion which makes 81.2% of the total revenue earned by all modes of transportation.
Note: American Trucking Association calculates the tonnage index based fromits membership surveys. This is a preliminary figure only and is subject to change in the final report issued around the 10th day of the month. The complete report list down month-to-month and year-over-year results, and also includes relevant economic comparisons as well as key financial indicators information. ATA is the trucking industry’s largest national trade association. It is a solid federation consist of 50 affiliated trucking associations in the US and other trucking industry related conferences and councils. Since ATA was established in 1933, they have consistently become the leading advocate for the trucking industry in the US. Check out the website at Driver Armellini