The American Trucking Associations (ATA) recently reported a rise in its For-Hire Truck Tonnage Index. In August, the index grew by 1.8%, after also increasing by 0.4% in July. The August index reached 115.8, up from 113.8 in July, making it the highest since February 2023.
Continued Growth Signals Market Recovery
ATA’s Chief Economist, Bob Costello, highlighted that this steady increase is a sign of recovery for the trucking industry. “August tonnage levels rose to the highest level since February 2023,” said Costello. “Not only does the latest robust gain show freight levels are coming off the bottom, but so does the sequential pattern over the last eight months.”
Costello noted that the month-to-month increases are a strong indicator that the market is turning a corner. “For me, this month-to-month pattern is more important than looking at the year-over-year percent changes since we are at an inflection point in the freight market,” he said.
The initial figure for July was also revised. Originally reported as a 0.2% increase, it was adjusted to a 0.4% rise.
Year-Over-Year Gains
Although the year-over-year increases have been rare, August saw a 0.7% rise compared to the same month in 2023. This marks only the second such increase in the last 18 months, the other being in May 2024. July’s index, however, was down 0.9% compared to July 2023.
While the year-over-year growth is small, it indicates that freight levels are starting to improve, giving the trucking industry a boost after months of challenges.
Not Seasonally Adjusted Truck Tonnage Index
The ATA’s not seasonally adjusted index, which measures tonnage before seasonal adjustments, showed even more growth. It rose by 2.2% in August, reaching 119.4. This index gives a more direct view of the actual freight being hauled.
This increase points to higher demand for contract freight services, which are the majority of the tonnage measured by ATA. Contract freight typically provides more stability compared to spot market freight, showing that demand for trucking services is holding steady.
Trucking’s Role in the U.S. Economy
Trucking continues to be a key part of the U.S. economy. In 2022, trucks hauled 72.6% of all freight in the country, moving 11.46 billion tons of goods. Trucking also generated $940.8 billion in revenue, accounting for 80.7% of total revenue across all freight transport modes.
ATA’s Truck Tonnage Index and Economic Indicators
The ATA’s Truck Tonnage Index is often seen as a reliable measure of economic health. The index, which has been calculated using surveys from ATA members since the 1970s, shows trends in freight activity that often align with broader economic trends. The data provides insight into consumer demand, retail activity, and manufacturing levels.
Each month’s index figure is subject to revision, with a final report issued by ATA around the 5th of the following month. This report includes detailed data on month-to-month and year-over-year results, as well as comparisons with key economic indicators.
Looking Ahead
The rise in the ATA’s Truck Tonnage Index for August shows positive signs for the trucking industry. As tonnage reaches its highest level since February, the data suggests that the industry is on the road to recovery.
The increase in contract freight tonnage and overall demand offers hope that this trend will continue for the remainder of 2024, providing stability and growth for the freight market.
