why-join-food-shippers

The Food Shippers of America Blog

Truck Tonnage Index Slips 2.3% in October

by Staff, on Dec 1, 2022 12:05:00 PM

Truck-Tonnage-October-2022-1200x628

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 2.3% in October after rising 0.8% in September. In October, the index equaled 116.3 (2015=100) versus 119.1 in September.

Bob Costello-1“For-hire truck tonnage saw the largest single monthly decrease in October since the start of the pandemic,” says ATA Chief Economist Bob Costello, who regularly speaks at FSA’s annual conference and is considered one of FSA’s most respected guest authorities on the trucking marketplace. “The decrease fits with the anecdotal reports of a muted fall freight season. It also coincides with a slowing economy. Housing is a weak spot in freight in addition to a slowing in personal consumption of goods. While factory related freight is holding up better than other areas, it is also decelerating.”

September’s increase was revised up slightly from a press release issued by ATA Oct. 18.

Compared with October 2021, the SA index increased 2.8%, which was the fourteenth straight year-over-year gain, but the smallest gain since April. In September, the index was up 5.7% from a year earlier. Year-to-date through October, compared with the same period in 2021, tonnage was up 3.9%.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, equaled 118.9 in October, 0.4% below the September level (119.3). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight.

Trucking serves as a barometer of the U.S. economy, representing 72.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.93 billion tons of freight in 2021. Motor carriers collected $875.5 billion, or 80.8% of total revenue earned by all transport modes. A significant percentage of freight reflected in the Index represents food and beverage products, ingredients, packaging, and other food-related materials.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

Like this kind of content? Subscribe to our "Food For Thought" eNewsletter!

FSA-Food-For-Thought-email-example

Now more than ever, professionals consume info on the go. Distributed twice monthly, our "Food For Thought" e-newsletter allows readers to stay informed about timely and relevant industry topics and FSA news whether they're in the office or on the road. Topics range from capacity, rates and supply chain disruption to multimodal transportation strategy, leveraging technology, and talent management and retention. Learn More

About FSA

Whether it’s supply chain optimization and modal usage or talent development and green logistics, Food Shippers helps you to stay on top of key issues and emerging trends. Being part of our community helps you to bring efficiencies to your supply chain and gain a competitive edge.

Disclaimer: The views and opinions expressed in articles within the FSA Blog are those of the authors/submitters and do not necessarily reflect the views or positions of Food Shippers of America.

Have a story to tell food shippers? Pitch it to us.