ATA Truck Tonnage index jumps 2.4 percent

Source: Supply Chain Digital

Date :2/29/2008 1:49:01 AM

The American Trucking Associations' Truck Tonnage Index increased 2.4 percent in January 2008, after rising by 1.5 percent in December 2007.

For full year 2007 ATA's truck tonnage index fall by 1.5 percent compared with the previous year.

Recovery

ATA Chief Economist Bob Costello said January's strength was a good sign but stopped short of saying that truck tonnage was on the road to recovery.

"The economy is either in a mild recession or on the brink of one, and we are hearing anecdotal reports that freight volumes slowed in February," he said.

"I anticipate that truck tonnage will recover before the general economy, but I am withholding judgment on whether truck tonnage is in a recovery mode until I analyse another month or two of data."

Strength

Truck tonnage, which often leads both recessions and recoveries, has rebounded, in some cases, before the overall economy actually started a recession, according to Costello.

Trucking serves as a good indicator of the strength of the US economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.

February 29, 2008