“Although the U.S. economy is in solid shape overall, the freight economy is not as strong,” Costello said. (Granddriver/Getty Images)
key takeaways:
- The American Trucking Association said its for-hire truck tonnage index rose 0.1% in June to 113.1 after freight volume weakened at the start of the second quarter.
- Tonnage fell 0.1% from a year earlier and declined 4.1% in April and May, although first-half volumes were up 1.4%.
- ATA chief economist Bob Costello said stricter CDL and English-language enforcement is reducing capacity, helping to balance freight markets despite soft freight demand.
According to , freight tonnage regained some lost ground in June after a slow start to the second quarter. American Trucking Association.
The ATA For-Hire Truck Tonnage Index rose 0.1% from last month to 113.1. But the latest results also saw a decline of 0.1% compared to the previous year. Tonnage in the first six months was still 1.4% higher than last year due to a strong first quarter, the report said.
“While there was little change in tonnage during June, there was definite weakness in volumes during the second quarter as the index declined a total of 4.1% during April and May,” said Bob Costello, ATA’s chief economist. “After five consecutive year-on-year increases, tonnage has now fallen below year-ago levels over the past two months.”
The Department of Transportation is tightening enforcement of non-domiciled commercial driver licenses and English language proficiency standards this year. This has accelerated the ongoing decline in capacity, helping to bring the freight market into better balance despite slower growth in freight tonnage.
“Although the U.S. economy is in solid shape overall, the freight economy is not as strong,” Costello said. “That said, the reduction in capacity compared to last year probably has the fleet feeling a little better than anticipated.”
