May Truck Tonnage Declines 11 Percent

By Juli Morris on July 10, 2009 in Labor Market Dynamics.

The American Trucking Associations' (ATS) For-Hire Truck Tonnage Index for May 2009 reported a slight rise, the first since February of this year. In May, tonnage decreased 11 percent year-over-year, an improvement over the 13.2 drop for April.

ATA Chief Economist Bob Costello noted that any growth in tonnage in the third quarter is likely to be slight, but that he also does not expect further deterioration:

“I am hopeful that the worst is behind us, but I just don’t see anything on the economic horizon that suggests freight transportation is ready to explode,” Costello said. “The consumer is still facing too many headwinds, including employment losses, tight credit, rising fuel prices, and falling home values, to name a few, that will make it very difficult for household spending to jump in the near term.”

On July 2nd, the BLS' preliminary report indicated a loss of 13,900 jobs in the transportation and warehousing industry in June, raising total job losses to 334,000 since employment peaked in December 2007.