The American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index decreased by 2% in March following a 4% increase in February. This decline suggests ongoing lackluster truck freight volumes, indicating a continued truck freight recession through the first quarter of 2024. Compared to the same period in the previous year, the tonnage index fell by 2.4%.
In contrast, the not seasonally adjusted index, representing the actual change in tonnage hauled by fleets before any seasonal adjustments, rose by 4.7% in March compared to February. ATA’s For-Hire Truck Tonnage Index primarily reflects contract freight rather than spot market freight.
Trucking serves as a significant indicator of the U.S. economy, representing 72.6% of tonnage carried by all modes of domestic freight transportation. Despite the recessionary trend in truck freight volumes, the industry continues to play a vital role in the transportation of manufactured and retail goods.
In a separate development, California has gained legal clearance to enforce its AB 5 law, which imposes restrictions on trucking companies’ use of independent contractors. Despite ongoing legal challenges and potential impacts on the trucking industry, the law is moving forward, raising questions about its effects on trucking operations in the state.
Additionally, the U.S. Department of Labor (DOL) has issued a new rule changing the criteria for defining independent contractors. This rule, which went into effect in March, introduces a “totality-of-the-circumstances” test to determine worker classification, potentially impacting how businesses engage with independent contractors.
Furthermore, a federal district court has blocked a National Labor Relations Board (NLRB) rule related to joint employment status, maintaining the Trump-era standard. This decision is seen as a victory for employers, particularly in industries where joint employment status could have significant implications for labor relations.
Overall, these legal developments, along with ongoing economic challenges, underscore the complex landscape facing the trucking industry and its stakeholders.
