Truck Tonnage Increases 4.1% in July

Transport Topics reported that truck tonnage rose 4.1% in July, extending the streak of consecutive year-over-year increases to 32, citing ATA data. ATA’s freight index, which stands at 118.8, posted the largest increase since February. On a month-to-month basis, the index was unchanged from June, the article said.

In a news release, ATA chief economist Bob Costello said, “July’s reading reflects an economy that has lost some steam, but hasn’t stalled. Certainly there has been some better economic news recently, but I continue to believe we will see some deceleration in tonnage during the second half of the year, if for nothing else but very tough comparisons on a robust August through December period in 2011.”

Costello said, in the release, that he believes the slowdown in new factory orders will constrain manufacturing output, which will impact truck freight volumes. Additionally, he is concerned about the recent jump in the total business (manufacturing, wholesale, and retail) inventory-to-sales ratio. “Unintended gains in inventories will hit trucking negatively as the supply chain works off stocks.” Costello kept his tonnage outlook for 2012 to the 3% to 3.5% range as reported last month.

To read the Transport Topics article (subscription required), click here.

To read the ATA news release click here.