Freight Index Climbed 1.6 Percent in July

The Freight Transportation Services Index rose 1.6 percent in July from its June level, the first monthly increase since February and the largest increase since January 2008, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported Thursday.

“The rise in the freight index for the first time since February is a sign that the economic recovery is beginning,” said U.S. Transportation Secretary Ray LaHood. “Between the American Recovery and Reinvestment Act, the cash for clunkers program and other actions this Administration has taken, I am hopeful that the economy is starting to turn around. However, despite this tangible sign of progress, we all know that we still have a long way to go. We will redouble our efforts to make sure transportation infrastructure is one of the drivers for the future.”

The Freight TSI declined in nine of the last 12 months; it increased once in February and remained steady in June. The increase in July is only the second in a year, said the DOT’s Bureau of Transportation Statistics.

The Freight TSI measures the month-to-month changes in freight shipments and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The July Freight TSI of 95.5 is a 1.6 percent increase from the recent low of 94 reached in May and June. During those two months, the index was at its lowest level since June 1997. The Freight TSI is down 15.4 percent from its historic peak of 112.9 reached in May 2006.

The 4.8 percent decline in the first seven months of 2009 was the second largest in the last decade, exceeded only by the 5.9 percent decline for the first seven months of 2000.

Contact Thomas L. Gallagher at tgallagher@joc.com.