Trucking demand continues to fall
ATA tonnage index hits lowest level since 2001
By Dave Hannon -- Purchasing, 5/27/2009 2:53:00 PM
The American Trucking Associations’ seasonally adjusted truck tonnage index fell 2.2% in April, after plunging 4.5% in March. Compared with April 2008, tonnage shrank 13.2%, pushing the index to its lowest level since November 2001.
ATA Chief Economist Bob Costello said truck tonnage is getting hit from both the recession and retailers that are holding off ordering in favor of working through existing inventory.
"While most key economic indictors are decreasing at a slower rate, the year-over-year contractions in truck tonnage accelerated because businesses are right-sizing their inventories, which means fewer truck shipments," Costello said. "The absolute dollar value of inventories has fallen, but sales have decreased as much or more, which means that inventories are still too high for the current level of sales. Until this correction is complete, freight will be tough for motor carriers."
Costello added that it could be a few more months before truck freight hits bottom.
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