ATA: Truck tonnage index drops 2.5% in April

The seasonally adjusted For-Hire Truck Tonnage Index was down last month compared to the month prior, the same period last year, and year-to-date.    Domestic truck tonnage dropped 2.5 percent in April 2017, the third straight monthly decline after falling a revised 1.1 percent and 0.1 percent in March and February, according to the American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index.
   The seasonally adjusted index equaled 134 for the month, down 1.1 percent from April 2016.
   For the full year in 2016, tonnage rose 2.5 percent compared with 2015, but ATA noted that so far in 2017, the index is down 0.3 percent from the same period a year ago. The all-time high index reading was 142.7 in February 2016.
   The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 132.6 in April, down 7.8 percent from the previous month (143.8).
   “I have to admit that April’s contraction is a bit surprising, especially considering the anecdotal reports I’ve been hearing from fleets regarding freight levels,” said ATA Chief Economist Bob Costello. “It’s not necessarily that tonnage levels fell in April that is surprising, but the size of the decrease. One explanation is that housing starts fell substantially in April as well, and residential construction generates heavier truck freight.
   “Despite the fact that tonnage is down a total of 3.6% over the last three months, I still expect moderate growth going forward as key sectors of the economy continue to improve slowly,” he added.