Truck Tonnage Rises 1.8% in May, ATA Reports
Truck tonnage rose 1.8% last month, the smallest year-over-year increase since February 2013, because weakness in factory output and less replenishment of inventory depressed freight levels, American Trucking Associations reported.
The pace of the year-over-year tonnage increase has been flagging since January, when a record level of 135.8 was attained and the year-over-year increase was 6.7%. Over the first four moths of 2015, tonnage rose 4.4%, including 2.7% in April.
On a month-to-month basis, tonnage rose 1.1% in May to 132.1, compared with the revised April number. Tonnage in April fell 1.4% on a month-to-month basis, rather than the 3% drop that was reported earlier, ATA said.
“The good news is that truck tonnage increased in May,” ATA Chief Economist Bob Costello said. “But tonnage is certainly not strong at the moment as factory output is soft and there is an inventory reduction occurring throughout the supply chain.
“I believe the inventory correction should end this summer and truck freight, helped by better personal consumption, will accelerate, which is good, because I think it is unlikely factory output will boost truck tonnage much until later this year or next year.”
The not seasonally adjusted index, measuring freight actually hauled, was 133.1 last month, up 0.3% over April.
