Truck Tonnage Decline Slows in May

Although truckers hauled less freight in May compared with the same month a year ago, the contraction was the best year-over-year result in three months, and tonnage actually increased compared with April of this year.

The American Trucking Associations’ advance seasonally adjusted For-Hire Truck Tonnage Index rose for the first time since February, gaining 3.2 percent to 102.3 in May. Before seasonal adjustment, the index was at 102 in May, up 0.4 percent from April.

Compared with May 2008, tonnage contracted 11 percent. While still large, the decline was an improvement upon the 13.2 percent drop in April.

ATA Chief Economist Bob Costello said the month-to-month improvement was encouraging, but cautioned that tonnage is unlikely to surge anytime soon.

“I am hopeful that the worst is behind us,” said ATA Chief Economist Bob Costello, “but I just don’t see anything on the economic horizon that suggests freight transportation is ready to explode. The consumer is still facing too many headwinds, including employment losses, tight credit, rising fuel prices, and falling home values, to name a few, that will make it very difficult for household spending to jump in the near term.”

In the next few months, Costello said he did not expect much further deterioration in tonnage but perhaps some modest growth.

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