Truck index at lowest since Nov. 2001
American Trucking Associations' said its advance seasonally adjusted For-Hire Truck Tonnage Index fell 2.2 percent in April, after plunging 4.5 percent in March. April marked the second sequential decrease.
ATA Chief Economist Bob Costello said truck tonnage is getting hit from both the recession and the massive inventory correction that the supply chain is currently undergoing. He added that truck freight has yet to hit bottom and it could be a few more months before this occurs.
In April, the SA tonnage index equaled just 99.2 (2000 = 100), which the group said is its lowest level since November 2001.
'While most key economic indictors are decreasing at a slower rate, the year-over-year contractions in truck tonnage accelerated because businesses are right-sizing their inventories, which means fewer truck shipments,' Costello said. 'The absolute dollar value of inventories has fallen, but sales have decreased as much or more, which means that inventories are still too high for the current level of sales. Until this correction is complete, freight will be tough for motor carriers.'
Truck index at lowest since Nov. 2001
