“May was the first month since February 2023 that tonnage increased both sequentially and from a year earlier,” said ATA Chief Economist Bob Costello. “While there was clearly an increase in freight before the Memorial Day holiday, it is still too early to say whether this is the start of a long-awaited recovery in the truck freight market.”

ATA officials also mentioned that April’s decline was slightly revised upward from what was reported on May 21. On a year-over-year basis, the index saw a 1.5% increase in May, marking the first gain of this kind in 15 months. Conversely, April’s index was down 1.3% compared to the same period the previous year.

The unadjusted index, which reflects the actual tonnage hauled before any seasonal adjustments, rose to 120.4 in May, up 7.1% from April. The ATA’s For-Hire Truck Tonnage Index primarily represents contract freight rather than spot market freight. For reference, the index uses 2015 as its base year, set at 100.

Trucking is a vital indicator of the U.S. economy, handling 72.6% of the tonnage carried by all domestic freight transport modes, including both manufactured and retail goods. In 2022, trucks transported 11.46 billion tons of freight. Motor carriers generated $940.8 billion, which accounted for 80.7% of total revenue from all transport modes.

Source: The Trucker

The post ATA’s Truck Tonnage Index Experienced Significant Growth in May appeared first on Truck Drivers USA.

Overall Trucking Industry:

• The U.S. Bank Shipment Index indicated that spending fluctuations and a slowdown in economic activity significantly impacted the truck freight market.
• Despite experiencing its sixth consecutive quarter of contraction, this quarter saw the smallest reduction in three quarters.
• Volume declines outweighed spending declines, suggesting a reduction in freight capacity and maintaining elevated costs.
• Overall, the shipment index fell below the five-year trend, marking the sharpest year-over-year decline since 2019.

Owner-Operator Outlook:

• Truckload volumes saw a second consecutive quarterly increase but remained in negative territory, exerting downward pressure on rates.
• Net truckload revenue remained relatively stagnant quarter-over-quarter and decreased compared to the previous year, indicating that the next cycle may still be distant.
• C.H. Robinson, a major logistics platform, struggled to meet expectations amidst weak freight demand and surplus carrier capacity. The Foundation’s market report noted a correlation between C.H. Robinson’s margins and spot rates.

Leased-On Owner-Operator Outlook:

• Low demand, weak manufacturing, an atypical peak season, and excess capacity persisted in the fourth quarter.
• The number of loads hauled via truck showed a reasonably consistent trend with historical pre-pandemic patterns.
• However, the number of trucks provided declined for eight consecutive quarters and remained below the five-year trend, reflecting ongoing challenges.

Company Driver Outlook:

• Real wholesale trade sales, excluding petroleum, increased for the second consecutive quarter, potentially signaling positive future freight demand once inventories stabilize.
• Employment in the general-freight, long-distance truckload sector, representing OOIDA membership, decreased quarter-over-quarter, reflecting downsizing efforts to match weaker demand.
• This marked the first year-over-year decline since the first quarter of 2021, underscoring the industry’s overcapacity.
• Average weekly earnings declined in the fourth quarter, persisting in a downward trend since the second quarter of 2021, with inflation-adjusted pay remaining below 2019 levels by 2%.

For further details, the full OOIDA Foundation quarterly market report is available for review.

Source: Land Line

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