American Trucking Associations posts 0.9 tonnage decline in October
According to the American Trucking Associations (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index, US October truck tonnage fell 0.3% after suffering a 6.3% decrease in September, marking the second monthly decline in 2016.
IATA economist Bob Costello said that "While seasonally adjusted tonnage fell, meaning the not seasonally adjusted gain wasn't as large as expected, the bottom of the current tonnage cycle should be near.”
He said that "There are some recent trends that suggest truck freight should improve, albeit gradually, but soon.”
Costello said that "Retail sales, housing starts, and even factory output all improved in October, which is a good sign. Most importantly, there has been considerable progress made in clearing out excess stocks throughout the supply chain.”
He said that "While that correction is still ongoing, there has been enough improvement that the negative drag on tonnage shouldn't be as large going forward.”
The seasonally adjusted index equalled 131.6 for the month, down 0.9% compared with October 2015, the second consecutive year-on-year decline and the second of 2016, after the index slipped 1.3% in September.
Tag Keyword: American Trucking Associations , Truck , Supply Chain