The American Trucking Associations reported that truck tonnage in July experienced a 3% decrease when compared to the same month in 2022. This decline marks the fifth consecutive year-over-year decrease in truck tonnage. This trend highlights the ongoing softness in the freight market, indicating that the demand for trucking services continues to be sluggish.
“Headwinds for freight remained in July, pushing the truck tonnage index lower,” ATA Chief Economist Bob Costello said in an Aug. 22 news release.
“As has been the case for several months, a multitude of factors have caused a recession in freight, including sluggish spending on goods by households as consumers traveled more and went to concerts this summer. Less home construction, falling factory output, and shippers consolidating freight into fewer shipments compared with the frenzy during the goods-buying spree at the height of the pandemic are also significant drags on tonnage.”
The American Trucking Associations (ATA) reported that the seasonally adjusted For-Hire Truck Tonnage Index stood at 112.9 in July, which represented a decline from the index value of 116.2 recorded in the same month of the previous year. Furthermore, the index experienced a 3.1% decrease compared to the month of June, during which it was measured at 116.5.
The index is calculated with a baseline of 100 representing the year 2015. It primarily focuses on contract freight rather than spot market freight.
According to the ATA, the trucking industry contributes significantly to domestic freight transportation, accounting for 72.6% of the total tonnage carried by all modes of transportation, encompassing goods from manufacturing and retail sectors. In the year 2022, trucks transported a total of 11.46 billion tons of freight, contributing to a substantial revenue of $940.8 billion for motor carriers. This revenue represented 80.7% of the entire revenue generated by all modes of transportation combined.
