ATA Reports Sequential Freight Tonnage Rise for July

The trucking industry experienced a slight increase in freight tonnage in July compared to June, but there was a decrease compared to the same month last year, according to the American Trucking Associations. The ATA For-Hire Truck Tonnage Index rose by 0.3% from June, reaching 113.7, although it was still down by 0.9% year-over-year. Chief Economist Bob Costello noted that the minor gain may be attributed to strong import activity, especially at West Coast seaports, and that it reflected some improvement in retail sales and factory output. Rajeev Dhawan, from Georgia State University, highlighted an increase in tonnage at U.S. ports, particularly in Los Angeles and Long Beach, as companies try to mitigate the risks of a potential dockworker strike in September. This proactive approach aims to ensure that shipments arrive in time for the busy holiday shipping season, potentially increasing inventory costs but essential for meeting customer demand. He suggested that heightened port activity could lead to increased demand for rail and trucking services over the next few months, although the overall economy appears to be slowing. The Cass Freight Index also indicated a year-over-year decline in shipments but showed a sequential increase of 3% from June, suggesting that while goods demand is slowly rising, the growth in private fleet capacity is waning, which eases pressure on for-hire shipments. The Logistics Managers’ Index reported improvement in industry sentiment but remains below historical averages. In the transportation field, the slight upward trend in freight tonnage indicates that while the market is not fully robust, there are underlying factors driving increased activity, such as market anxieties over labor disruptions and seasonal shipping demands. It’s crucial for companies to balance early inventory build-up with transportation capacity to avoid congestion at ports, especially as the economy moves towards a complex period leading into the 2024 elections. Stakeholders in transportation must remain vigilant to navigate these challenges effectively.