March Truck Tonnage Falls 0.2%
Truck tonnage declined 0.2% in March from a year ago, marking the first year-to-year downturn since October, American Trucking Associations said Thursday.
The decline left the index at a reading of 113.4, the lowest since November, ATA said.
Tonnage was down 3.3% from February, the group said in its monthly seasonally adjusted for-hire truck tonnage index.
The not seasonally adjusted index rose 3.8% from February, to a reading of 113.2.
ATA Chief Economist Bob Costello said the latest tonnage reading was a significant setback.
“I’ve been concerned that the recent run-up in tonnage might not be sustainable, and clearly March’s figures confirmed that apprehension,” he said. The 3.3% drop was the largest month-to-month contraction since August 2006.
Costello continues to forecast a mild recession for the overall economy during the first half of 2008, but he said the drop might suggest the economic contraction could be more severe than previously thought.
“Truck tonnage often leads both recoveries and recessions, and the latest contraction suggests the economy and trucking are not out of the woods yet,” he said.
“Surging diesel and gasoline prices are weighing heavily on consumers, and since trucks haul virtually all consumer goods at some point in the supply chain, the industry is going to be significantly impacted both directly through higher diesel prices and indirectly through lower freight volumes,” Costello said.
ATA calculates the tonnage each month based on reports by its member trucking companies.
