Truck tonnage experienced its twelfth consecutive year-over-year decline in February, although it showed a respectable month-to-month increase. The American Trucking Associations’ (ATA) For-Hire Truck Tonnage Index indicated a 1.4% year-over-year decline to 116.0. However, this figure represented a 4.3% increase over January’s reading of 111.3. Despite the positive month-to-month growth, ATA Chief Economist Bob Costello emphasized that there is still significant room for improvement in the industry, noting that truck freight appears to still be in a recessionary phase.

The ATA index primarily reflects contract freight rather than spot market freight, with 100 representing 2015 levels. The Logistics Managers’ Index (LMI) also demonstrated a sequential gain, rising 0.9% to 56.5 in February from January’s reading of 55.6. On a year-over-year basis, this marked a 3.3% improvement. The growth was attributed to expansion in all eight sub-metrics captured in the index for the second consecutive month.

Arizona State University Professor of Business Dale Rogers, an author of the LMI report, highlighted ongoing expansion in transportation and inventory buildup upstream at the manufacturing and wholesale levels. He also pointed to factors such as increased immigration and domestic energy production as contributors to the positive trend in the U.S. economy.

ACT Research projected potential improvement in the freight industry for the second and third quarters, attributing January’s slowed freight volumes to weather conditions. The report noted signs of increased demand from shippers, although this demand had not yet translated into the spot market.

Meanwhile, strong container volumes reported by major ports in January and February, including Los Angeles and Long Beach, were seen as indicators of an improving economy. In February, U.S. employers added 275,000 jobs, signaling the economy’s resilience despite high interest rates. Though the unemployment rate ticked up slightly to 3.9%, it remained below 4% for the 25th consecutive month.

Inspired by: https://www.ttnews.com/articles/tonnage-mixed-february

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